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.