Senate committee approves deal reached on Nevada mining tax deductions

A tentatgold sands mining in pacific oceanive deal was struck, then amended, late Sunday revising deductions the mining industry can take before state taxes are calculated. The Senate Revenue Committee amended and approved SB493, which strikes out portions of Nevada law that allowed mining companies to write off marketing costs and fire insurance.

It also eliminates deductions for employee housing, severance pay, out-of-state travel and federal, state or local taxes. The measure was then quickly approved by the full Senate, 16-5, and sent to the Assembly. A provision to allow the industry to continue to deduct the cost of employee health care was agreed to earlier in the night, then rescinded by the committee when it was realized those funds were already factored into local school district budgets. The deductions will be allowable again in two years. The measure also scraps a mining claim fee set to expire at the end of June. A district court judge on Tuesday struck down the fee, saying the state constitution prohibits any taxes beyond 5 percent of the net proceeds of minerals. But Sen. Sheila Leslie, D-Reno, said the fee imposed during a special session in 2010 was eliminated because it wasn't needed under the current budget agreement, not because of the state court ruling...