Metal Mines License Tax
Overview
Metal extractors in Montana must file a Metalliferous Mines License Tax (Form MML) return in the TransAction Portal (TAP).
Tax Rates
The Metal Mines License Tax is based on the gross value of the product and is applied to the payment the mining company receives from metal traders, smelters, roasters, or refineries.
- The tax only applies to gross values over $250,000.
- Gross values under $250,000 are subject to the Resource Indemnity and Ground Water Assessment Tax (RIT).
Metal Mines License Tax Rates by Shipment Type
| Shipment Type | Tax Rate |
|---|---|
| Dore, Bullion, or Matte | 1.6% |
| Concentrate or Crude Ore | 1.81% |
Determining Gross Value
Determine the gross value by multiplying the quantity of metal received by the trader, smelter, roaster, or refinery by the quoted price for the metal, then subtract allowed expenses.
Formula:
(Quantity of Metal × Quoted Price) – Allowed Expenses = Gross Value
Allowed Expenses
You may subtract the contract costs. These are payment deductions specified in the contract between the mining company and the metal trader, smelter, roaster, or refinery.
Allowed expenses are:
- Basic treatment and refinery charges
- Quantity deductions
- Interest
- Penalty metal deductions
- Impurity deductions
- Moisture deductions
- Price deductions
You may also subtract the cost of shipping from the mine or mill to the smelter, roaster, or refinery.
Reporting and Payment Options
File and pay through our TransAction Portal (TAP).
Due Dates
The tax is due twice each year:
- For the period ending June 30: Due August 15
- For the period ending December 31: Due March 31
Penalties and Interest
The Metal Mines License Tax is subject to uniform penalties and interest.
Revenue Distribution
Revenue from the Metal Mines License tax is distributed as follows:
- 47% to the state general fund
- 8.5% to the hard-rock mining reclamation debt service fund
- 7% to the natural resources operations state special revenue account
- 2.5% to the hard-rock mining impact trust account
- 35% to the county or counties identified as experiencing fiscal or economic impacts under an impact plan.
- If there is no impact plan prepared, this amount goes to the county where the mine is located.