TAXES ON PATENTED MINES AND PROCEEDS OF MINERALS

Nev. Rev. Stat. 362

in effect

Nev. Rev. Stat. § 362.010 Definitions.

As used in this chapter, unless the context otherwise requires: 1. Mine means an excavation in the earth from which ores, coal or other mineral substances are extracted, or a subterranean natural deposit of minerals located and identified as such by the staking of a claim or other method recognized by law. The term includes a well drilled to extract minerals. 2. Mineral includes oil, gas and other hydrocarbons, but does not include sand, gravel or water, except hot water or steam in an operation extracting geothermal resources for profit. 3. Patented mine or mining claim means each separate, whole or fractional patented mining location, whether such whole or fractional mining location is covered by an independent patent or is included under a single patent with other mining locations.

Nev. Rev. Stat. § 362.030 County assessor to assess surface of patented mines and mining claims; exceptions.

The county assessor shall assess the surface of each patented mine and mining claim in the county for which an affidavit was not filed pursuant to NRS 362.050, 362.070 and 362.090 and return the assessment as required by law.

Nev. Rev. Stat. § 362.040 Exclusion of assessment from roll.

Upon receipt of an affidavit from the county recorder pursuant to NRS 362.050 stating that at least $100 in development work has been actually performed upon the patented mine or mining claim during the federal mining assessment work period ending within the year before the fiscal year for which the assessment has been levied, the assessor shall exclude from the roll the assessment against the patented mine or mining claim named in the affidavit.

Nev. Rev. Stat. § 362.050 Affidavit of labor: Requirement for exemption of surface of patented mine or mining claim from taxation; form and contents.

1. To obtain the exemption of the surface of a patented mine or mining claim from taxation ad valorem, pursuant to Section 5 of Article 10 of the Constitution of this state, the owner must record an affidavit with the office of the county recorder for the county in which the mine is located on or before December 30 covering work done during the 12 months next preceding 12 a.m. on September 1 of that year. The exemption then applies to the taxes for the fiscal year beginning on July 1 following the filing of the affidavit. Upon receipt of such an affidavit, the county recorder shall transmit a copy of the affidavit, without charge, to the county assessor. 2. The affidavit of labor must describe particularly the work performed, upon what portion of the mine or claim, and when and by whom done, and may be substantially in the following form: State of Nevada } }ss. County of................................... } ................................, being first duly sworn, deposes and says: That development work worth at least $100 was performed upon the ............................... patented mine or mining claim, situated in the ........................................ Mining District, County of ..........................................., State of Nevada, during the federal mining assessment work period ending within the year ....... . The work was done at the expense of .............................., the owner (or one of the owners) of the patented mine or mining claim, for the purpose of relieving it from the tax assessment. It was performed by ................................, at about ................ feet in a ................ direction from the monument of location, and was done between the ........ day of the month of ........ of the year ......., and the .......... day of the month of .......... of the year ......., and consisted of the following work: ....................................................................................................................................................... ....................................................................................................................................................... ............................................................... (Signature) Subscribed and sworn to before me this ...... day of the month of ...... of the year ...... ............................................................................... Notary Public (or other person authorized to administer oaths)

Nev. Rev. Stat. § 362.060 Who may make affidavit.

The affidavit may be made by the owner or agent of the owner, or the person performing the labor, or by any person familiar with the facts, on behalf of the owner.

Nev. Rev. Stat. § 362.070 Contiguous patented mines or mining claims: Performance of work on one mine.

The owner of two or more contiguous patented mines or mining claims may perform all the work required by Section 5 of Article 10 of the Constitution of this state upon one mine or claim only; but the aggregate amount of such work must be equal to $100 for each of the contiguous patented mines or claims.

Nev. Rev. Stat. § 362.090 One affidavit may be recorded for labor on several patented mines or mining claims.

A single affidavit may be recorded for the labor on several patented mines or mining claims belonging to the same person or held in common ownership, provided all are located in the same county.

Nev. Rev. Stat. § 362.095 Method of taxation of patented mine or mining claim used for purpose other than mining or agriculture.

1. Whenever any portion of a patented mine or mining claim is used by the patentee or a successor in interest for a purpose unrelated to mining or agriculture, the portion of such patented mine or mining claim so used shall cease to be a patented mine or mining claim or part thereof and shall be taxed as other real property is taxed. 2. For the purpose of this section, a dwelling placed upon a patented mine or mining claim to be occupied by the operator of such patented mine or mining claim or his or her agent is not a use unrelated to mining. 3. Whenever any patented mine or mining claim is taxed as real property, such taxation shall not affect the status of contiguous patented mines or mining claims.

Nev. Rev. Stat. § 362.100 Duties of Department.

1. The Department shall: (a) Investigate and determine the net proceeds of all minerals extracted and certify them as provided in NRS 362.100 to 362.240 , inclusive. (b) Appraise and assess all reduction, smelting and milling works, plants and facilities, whether or not associated with a mine, all drilling rigs, and all supplies, machinery, equipment, apparatus, facilities, buildings, structures and other improvements used in connection with any mining, drilling, reduction, smelting or milling operation as provided in chapter 361 of NRS. (c) Deposit all taxes, interest and penalties it receives pursuant to this chapter in the State Treasury for credit to the State General Fund. Each year after the distribution of all money due to the State of Nevada and each county pursuant to NRS 362.170 , the State Controller shall transfer all taxes, interest and penalties collected pursuant to this chapter to the State Education Fund. 2. As used in this section, net proceeds of all minerals extracted includes the proceeds of all: (a) Operating mines; (b) Operating oil and gas wells; (c) Operations extracting geothermal resources for profit, except an operation which uses natural hot water to enhance the growth of animal or plant life; and (d) Operations extracting minerals from natural solutions.

Nev. Rev. Stat. § 362.105 Royalty defined.

As used in NRS 362.100 to 362.240, inclusive, unless the context otherwise requires: 1. Royalty means a portion of the proceeds from extraction of a mineral which is paid for the privilege of extracting the mineral. 2. Royalties do not include: (a) Rents or other compensatory payments which are fixed and certain in amount and payable periodically over the duration of the lease regardless of the extent of extractions; or (b) Minimum royalties covering periods when no mineral is extracted if the payments are fixed and certain in amount and payable on a regular periodic basis.

Nev. Rev. Stat. § 362.110 Annual statement of gross yield and claimed net proceeds; annual list of lessees.

1. Every person extracting any mineral in this State or receiving any royalty: (a) Shall, on or before February 16 of each year, file with the Department a statement showing the gross yield and claimed net proceeds from each geographically separate operation where a mineral is extracted by that person during the calendar year immediately preceding the year in which the statement is filed. (b) May have up to 30 days after filing the statement required by paragraph (a) to file an amended statement. 2. The statement must: (a) Show the claimed deductions from the gross yield in the detail set forth in NRS 362.120 . The deductions are limited to the costs incurred during the calendar year immediately preceding the year in which the statement is filed. (b) Be in the form prescribed by the Department. (c) Be verified by the manager, superintendent, secretary or treasurer of the corporation, or by the owner of the operation, or, if the owner is a natural person, by someone authorized in his or her behalf. 3. Each recipient of a royalty as described in subsection 1 shall annually file with the Department a list showing each of the lessees responsible for taxes due in connection with the operation or operations included in the statement filed pursuant to subsections 1 and 2.

Nev. Rev. Stat. § 362.115 Annual statement of estimated gross yield, net proceeds and royalties; use of statement.

1. In addition to the statement required by subsection 1 of NRS 362.110 , each person extracting any mineral in this State shall, on or before March 1 of each year, file with the Department a statement showing the estimated gross yield and estimated net proceeds from each such operation for the entire current calendar year and an estimate of all royalties that will be paid during the current calendar year. 2. The Department shall: (a) Use the statement filed pursuant to subsection 1 only to prepare estimates for use by local governments in the preparation of their budgets; and (b) Submit those estimates to the local governments on or before March 15 of each year.

Nev. Rev. Stat. § 362.120 Computation of gross yield and net proceeds; required reports.

1. The Department shall, from the statement filed pursuant to NRS 362.110 and from all obtainable data, evidence and reports, compute in dollars and cents the gross yield and net proceeds of the calendar year immediately preceding the year in which the statement is filed. 2. The gross yield must include the value of any mineral extracted which was: (a) Sold; (b) Exchanged for any thing or service; (c) Removed from the State in a form ready for use or sale; or (d) Used in a manufacturing process or in providing a service, Ê during that period. 3. The net proceeds are ascertained and determined by subtracting from the gross yield the following deductions for costs incurred during that period, and none other: (a) The actual cost of extracting the mineral, which is limited to direct costs for activities performed in the State of Nevada. (b) The actual cost of transporting the mineral to the place or places of reduction, refining and sale. (c) The actual cost of reduction, refining and sale. (d) The actual cost of delivering the mineral. (e) The actual cost of maintenance and repairs of: (1) All machinery, equipment, apparatus and facilities used in the mine. (2) All milling, refining, smelting and reduction works, plants and facilities. (3) All facilities and equipment for transportation except those that are under the jurisdiction of the Public Utilities Commission of Nevada or the Nevada Transportation Authority. (f) Depreciation of the original capitalized cost of the machinery, equipment, apparatus, works, plants and facilities mentioned in paragraph (e). The annual depreciation charge consists of amortization of the original cost in a manner prescribed by regulation of the Nevada Tax Commission. The probable life of the property represented by the original cost must be considered in computing the depreciation charge. (g) All money expended for premiums for industrial insurance, and the actual cost of hospital and medical attention and accident benefits and group insurance for employees actually engaged in mining operations within the State of Nevada. (h) All money paid as contributions or payments under the unemployment compensation law of the State of Nevada, as contained in chapter 612 of NRS, all money paid as contributions under the Social Security Act of the Federal Government, and all money paid to either the State of Nevada or the Federal Government under any amendment to either or both of the statutes mentioned in this paragraph. (i) The costs of employee travel which occurs within the State of Nevada and which is directly related to mining operations within the State of Nevada. (j) The costs of Nevada-based corporate services relating to paragraphs (e) to (i), inclusive. (k) The actual cost of developmental work in or about the mine or upon a group of mines when operated as a unit, which is limited to work that is necessary to the operation of the mine or group of mines. (l) The costs of reclamation work in the years the reclamation work occurred, including, without limitation, costs associated with the remediation of a site. (m) All money paid as royalties by a lessee or sublessee of a mine or well, or by both, in determining the net proceeds of the lessee or sublessee, or both. 4. Royalties deducted by a lessee or sublessee constitute part of the net proceeds of the minerals extracted, upon which a tax must be levied against the person to whom the royalty has been paid. 5. Every person acquiring property in the State of Nevada to engage in the extraction of minerals and who incurs any of the expenses mentioned in subsection 3 shall report those expenses and the recipient of any royalty to the Department on forms provided by the Department. The Department shall report annually to the Mining Oversight and Accountability Commission the expenses and deductions of each mining operation in the State of Nevada. 6. The several deductions mentioned in subsection 3 do not include any expenditures for salaries, or any portion of salaries, of any person not actually engaged in: (a) The working of the mine; (b) The operating of the mill, smelter or reduction works; (c) The operating of the facilities or equipment for transportation; (d) Superintending the management of any of those operations; (e) The State of Nevada, in office, clerical or engineering work necessary or proper in connection with any of those operations; or (f) Nevada-based corporate services. 7. The following expenses are specifically excluded from any deductions from the gross yield: (a) The costs of employee housing. (b) Except as otherwise provided in paragraph (i) of subsection 3, the costs of employee travel. (c) The costs of severing the employment of any employees. (d) Any dues paid to a third-party organization or trade association to promote or advertise a product. (e) Expenses relating to governmental relations or to compensate a natural person or entity to influence legislative decisions. (f) The costs of mineral exploration. (g) Any federal, state or local taxes. 8. As used in this section, Nevada-based corporate services means corporate services which are performed in the State of Nevada from an office located in this State and which directly support mining operations in this State, including, without limitation, accounting functions relating to mining operations at a mine site in this State such as payroll, accounts payable, production reporting, cost reporting, state and local tax reporting and recordkeeping concerning property.

Nev. Rev. Stat. § 362.130 Preparation and mailing of certificate of amount of net proceeds and tax due; due date of tax; overpayments.

1. When the Department determines from the annual statement filed pursuant to NRS 362.110 the net proceeds of any minerals extracted, it shall prepare its certificate of the amount of the net proceeds and the tax due and send a copy of the certificate to the owner of the mine, operator of the mine or recipient of the royalty, as the case may be. 2. The certificate must be prepared and mailed not later than: (a) April 20 immediately following the month of February during which the annual statement was filed; or (b) April 30 immediately thereafter if an amended statement is filed in a timely manner. 3. The tax due as indicated in the certificate must be paid on or before May 10 of the year in which the certificate is received. 4. If an overpayment was made, the overpayment must be credited toward the payment due on May 10 of the next calendar year. If the certificate shows a net loss for the year covered by the certificate or an amount of tax due for that year which is less than an overpayment made for the preceding year, the amount or remaining amount of the overpayment must, after being credited against any amount then due from the taxpayer in accordance with NRS 360.236 , be refunded to the taxpayer within 30 days after the certification was sent to the taxpayer.

Nev. Rev. Stat. § 362.135 Appeal of certification to State Board of Equalization; payment of tax pending determination of appeal.

1. Any person dissatisfied by any certification of the Department may appeal from that determination to the State Board of Equalization. The appeal must be filed within 30 days after the certification is sent to the taxpayer. 2. Pending determination of the appeal, the person certified as owing the tax shall pay it on or before the date due, and the tax is considered to be paid under protest.

Nev. Rev. Stat. § 362.140 Rate of tax upon net proceeds.

1. Except as otherwise provided in this section, the rate of tax upon the net proceeds of each geographically separate extractive operation depends upon the ratio of the net proceeds to the gross proceeds of that operation as a whole, according to the following table: Net Proceeds as Percentage Rate of Tax as Percentage of Gross Proceeds of Net Proceeds Less than 10............................................................................................ 2.00 10 or more but less than 18.................................................................. 2.50 18 or more but less than 26.................................................................. 3.00 26 or more but less than 34.................................................................. 3.50 34 or more but less than 42.................................................................. 4.00 42 or more but less than 50.................................................................. 4.50 50 or more............................................................................................... 5.00 2. If the combined rate of tax ad valorem which would be assessed but for the provisions of Section 5 of Article 10 of the Constitution of this state, including any rate levied by the State of Nevada, upon property at the situs of the operation is more than 2 percent, the minimum rate of tax under this section equals that rate of tax ad valorem. 3. The rate of tax upon royalties is 5 percent. 4. The rate of tax upon the net proceeds of a geothermal operation taxable pursuant to NRS 362.100 is the combined rate of tax ad valorem applicable to the property at the situs of the operation. 5. The rate of tax upon an operation for which the net proceeds in a calendar year exceed $4,000,000 is 5 percent.

Nev. Rev. Stat. § 362.150 Liens for taxes on proceeds of minerals.

Every tax levied under the authority or provisions of NRS 362.100 to 362.240, inclusive, on the proceeds of minerals extracted is hereby made a lien on the mines from which minerals are extracted for sale or reduction, and also on all machinery, fixtures, equipment and stockpiles of the taxpayer located at the mine site or elsewhere in the State. The lien attaches on the 1st day of January of each year, for the calendar year commencing on that day and may not be removed or satisfied until the taxes are all paid, or the title to those mines has vested absolutely in a purchaser under a sale for those taxes.

Nev. Rev. Stat. § 362.160 When tax becomes delinquent; collection of delinquency, penalty and interest; appeal of imposition of penalty and interest.

1. Except as otherwise provided in NRS 360.232 and 360.320 , if the amount of any tax required by NRS 362.100 to 362.240 , inclusive, is not paid within 10 days after it is due, it is delinquent and must be collected as other delinquent taxes are collected by law, together with a penalty of 10 percent of the amount of the tax which is owed, as determined by the Department, in addition to the tax, plus interest at the rate of 1 percent per month, or fraction of a month, from the date the tax was due until the date of payment. 2. Any person extracting any mineral or receiving a royalty may appeal from the imposition of the penalty and interest to the Nevada Tax Commission by filing a notice of appeal in accordance with the requirements set forth in NRS 360.245 .

Nev. Rev. Stat. § 362.170 Appropriation to county of amount of tax, penalties and interest attributable to extractive operations in county; apportionment by county treasurer; deposit of certain amount of tax, penalties and interest to credit of State Education Fund; Department to report amount received as tax upon net proceeds of geothermal resources.

1. There is hereby appropriated to each county the total of the amounts obtained by multiplying, for each extractive operation situated within the county, the net proceeds of that operation and any royalties paid by that operation, by the combined rate of tax ad valorem, excluding any rate levied by the State of Nevada and any rate levied for a county school district for any purpose other than capital projects or debt service for the county school district, for property at that site, plus a pro rata share of any penalties and interest collected by the Department for the late payment of taxes distributed to the county. The Department shall report to the State Controller on or before May 25 of each year the amount appropriated to each county, as calculated for each operation from the final statement made in February of that year for the preceding calendar year. The State Controller shall distribute all money due to a county on or before May 30 of each year. 2. The county treasurer shall apportion to each local government or other local entity an amount calculated by: (a) Determining the total of the amounts obtained by multiplying, for each extractive operation situated within its jurisdiction, the net proceeds of that operation and any royalty payments paid by that operation, by the rate levied on behalf of that local government or other local entity, excluding any rate levied for a county school district for any purpose other than capital projects or debt service for the county school district; (b) Adding to the amount determined pursuant to paragraph (a) a pro rata share of any penalties and interest collected by the Department for the late payment of taxes distributed to that local government or local entity; and (c) Subtracting from the amount determined pursuant to paragraph (b) a commission of 5 percent, of which 3 percent must be deposited in the county general fund and 2 percent must be accounted for separately in the account for the acquisition and improvement of technology in the office of the county assessor created pursuant to NRS 250.085 . 3. The amounts apportioned pursuant to subsection 2, including, without limitation, the amount retained by the county and excluding the percentage commission, must be applied to the uses for which each levy was authorized in the same proportion as the rate of each levy bears to the total rate. 4. The Department shall deposit to the credit of the State Education Fund the total of the amounts obtained by multiplying, for each extractive operation situated within a county, the net proceeds of that operation and any royalties paid by that operation, by the combined rate of tax ad valorem levied in that county for the county school district for any purpose other than capital projects or debt service for the county school district, plus a pro rata share of any penalties and interest collected by the Department for the late payment of taxes deposited to the credit of the State Education Fund. 5. The Department shall report to the State Controller on or before May 25 of each year the amount received as tax upon the net proceeds of geothermal resources which equals the product of those net proceeds multiplied by the rate of tax levied ad valorem by the State of Nevada.

Nev. Rev. Stat. § 362.171 Establishment and use of county fund for mitigation; certain school districts authorized to use money apportioned to school district to retire bonds or other obligations of school district.

1. Each county to which money is appropriated by subsection 1 of NRS 362.170 may set aside a percentage of that appropriation to establish a county fund for mitigation. Money from the fund may be appropriated by the board of county commissioners only to mitigate adverse effects upon the county, or the school district located in the county, which result from: (a) A decline in the revenue received by the county from the tax on the net proceeds of minerals during the 2 fiscal years immediately preceding the current fiscal year; or (b) The opening or closing of an extractive operation from the net proceeds of which revenue has been or is reasonably expected to be derived pursuant to this chapter. 2. A school district in a county whose population is less than 4,500 may, as the board of trustees of the school district determines is necessary, use a portion of the money apportioned to the school district pursuant to subsection 2 of NRS 362.170 to retire bonds issued by the school district or any other outstanding obligations of the school district. Before authorizing the expenditure of money pursuant to this subsection, the board of trustees shall hold at least one public hearing on the matter.

Nev. Rev. Stat. § 362.175 Procedure for removal of amount of tax and name from records of Department when tax impossible or impractical to collect.

1. If at any time, in the opinion of the Executive Director, it becomes impossible or impractical to collect any tax certified on the proceeds of minerals extracted, the Executive Director may apply to the Nevada Tax Commission to have the amount of the tax and the name of the person against whom the tax is certified removed from the tax records of the Department. 2. If the Nevada Tax Commission approves the application, the Department may remove the name and amount from its tax records.

Nev. Rev. Stat. § 362.180 Burden of proof on taxpayer to show certification by Department to be unjust, improper or invalid.

In any suit arising concerning the certification and taxation of the net proceeds of minerals extracted, the burden of proof is upon the taxpayer to show if the taxpayer so alleges or contends that the certification by the Department is unjust, improper or otherwise invalid.

Nev. Rev. Stat. § 362.200 Powers of Department: Examination of records; hearings.

1. The Department may examine the records of any person operating or receiving royalties from any extractive operation in this state. The records are subject to examination at all times by the Department or its authorized agents and must remain available for examination for a period of 4 years from the date of any entry therein. 2. If any person whose gross yield from an extractive operation as reported to the Department for any annual reporting period during the 4 years immediately preceding the examination was $100,000 or more keeps his or her books and records pertaining to that operation or royalties outside this state, the person shall pay an amount per day equal to the amount set by law for out-of-state travel for each day or fraction thereof during which an examiner is actually engaged in examining the books, plus the actual expenses of that examiner during the time he or she is absent from Carson City, Nevada, for the purpose of making the examination, but the time must not exceed 1 day going to and 1 day coming from the place of examination. No more than one examination may be charged against a person in any 1 fiscal year. 3. The Department may hold hearings and summon and subpoena witnesses to appear and testify upon any subject material to the determination of the net proceeds of minerals extracted. The hearings may be held at any place the Department designates, after not less than 10 days notice of the time and place of the hearing given in writing to the owner or operator of the mine. The owner or operator is entitled, on request made to the Executive Director, to the issuance of the Departments subpoena requiring witnesses in behalf of the owner or operator to appear and testify at such hearing. 4. The failure of a witness to obey the subpoena of the Department subjects the witness to the same penalties prescribed by law for failure to obey a subpoena of a district court.

Nev. Rev. Stat. § 362.230 Penalty for failure to file statements.

1. Every person extracting any mineral in this state, or receiving a royalty in connection therewith, who fails to file with the Department the statements provided for in NRS 362.100 to 362.240 , inclusive, during the time and in the manner provided for in NRS 362.100 to 362.240 , inclusive, shall pay a penalty of not more than $5,000. If any such person fails to file the statement, the Department may ascertain and certify the net proceeds of the minerals extracted or the value of the royalty from all data and information obtainable, and the amount of the tax due must be computed on the basis of the amount due so ascertained and certified. 2. The Executive Director shall determine the amount of the penalty. This penalty becomes a debt due the State of Nevada and, upon collection, must be deposited in the State Treasury to the credit of the State General Fund. 3. Any person extracting any mineral or receiving a royalty may appeal from the imposition of the penalty to the Nevada Tax Commission by filing a notice of appeal in accordance with the requirements set forth in NRS 360.245 .

Nev. Rev. Stat. § 362.240 Penalty for false statements.

Any person who verifies under oath to the truthfulness of a statement required by NRS 362.100 to 362.240, inclusive, that is false in any material respect shall be liable to a penalty of not more than 15 percent of the tax as determined by the Executive Director after reasonable notice and hearing.

Source: NV Statutes (Official Site)URL: https://www.leg.state.nv.us/nrs/NRS-362.htmlFetched: 10/4/2026