Form 47 - Idaho Mine License Tax Return (Page 2 of 2) in pdf

EFO00048p2

Instructions for Idaho Form 47

06-17-15

You must file a Form 47 for each year you mine, or receive royalties from mining, any of the following: quartz, quartzite, gold, silver,

copper, lead, zinc, coal, phosphate, limestone, stone quarries, or other metals or minerals. Use the same tax year on your Form 47 as

you used on your federal income tax return.

The tax is due on the 15th day of the fourth month following the end of the tax year. If you have an automatic six-month extension of

time to file your income tax return, you have the same extension of time to file your Form 47.

You must file a separate return for each mine or group of mines. If you own two or more separate mines, only those mines grouped to

compute the depletion allowable for federal income tax purposes may be treated as one property.

If you mine ores on public lands for which the U.S. Department of the Interior computes mineral values for federal royalty purposes, you

must elect to compute the mine license tax using Method A or Method B. Include your written election with the first Idaho Mine License

Tax Return you file. To change methods, you must get written permission from the Idaho State Tax Commission before your tax return

is due. If you receive royalties, or if you don't elect Method B, you must use Method A.

If your mining activity includes both the receiving of royalties and the extracting of ores, you must determine the net value separately.

The separate determinations may not be netted together or offset against each other.

AMENDED RETURNS

This form can be used as an original return or an amended return. If you are filing this form as an amended return, check the box at the

top of the form. Enter the applicable reason(s) for amending, as listed below. Complete the entire form using the corrected amounts.

1. Federal Audit

2. Other - Include an explanation.

MINE LICENSE ACCOUNT NUMBER

Enter the nine-digit mine license account number provided by the Tax Commission for this mine or group of mines. If this is the initial

return for this mine or group of mines, leave this line blank.

CYANIDATION FACILITIES

If your mining operation includes a cyanidation facility, check the box in the area above line 1. Cyanidation is the method of extracting

precious metals from ores by treatment with cyanide solution as the primary leaching agent for extraction.

INITIAL RETURN

If this is your first year of mining this location in Idaho, check the Initial Return box in the area above line 1.

FINAL RETURN

If you have permanently ceased all mining operations at this location, check the Final Return box in the area above line 1.

HOW TO COMPUTE THE TAX

Method A

Use this method if you receive royalties, or if you didn't elect Method B. This method of computing net value of ores mined or royalties

received is found in Section 47-1202(a), Idaho Code.

Enter the taxable income from mining (defined in Section 613 of the Internal Revenue Code and Treasury Regulation 1.613-5)

Line 1.

or the gross amount received as royalties. This is the amount used in your federal percentage depletion expense computation.

Line 2.

Enter the depletion expense allowed on your federal income tax return related to the receipts reported on line 1 of this return.

Include a copy of the federal depletion expense computation.

Method B

Enter the gross value of ores mined as determined by the U.S. Department of the Interior. Include a schedule detailing your

Line 4.

computation.

Enter the total of all direct mining and Idaho transportation costs attributable to the production of the ores to the point at which

Line 5.

the ores were valued for line 4 above. Include a schedule itemizing these mining costs.

Enter the allowable portion of the depletion expense deducted on your federal income tax return computed as follows:

Line 6.

Gross value of ores (line 4)

Depletion expense allowed on

Deductible portion

Gross value of ores for federal

the federal income tax return

of federal depletion expense

depletion expense purposes

Line 13.

Total due. Tax payments of $100,000 or more must be paid by electronic funds transfer. If you are making an electronic funds

transfer for the first time, contact the Tax Commission at (208) 334-7660 for further information.

AMENDED RETURN ONLY

Complete lines 14 through 16 only if you are filing this return as an amended return.

MAIL TO: Idaho State Tax Commission, PO Box 56, Boise ID 83756-0056

INCLUDE A COPY OF YOUR FEDERAL DEPLETION EXPENSE COMPUTATION.

Form 47 - Idaho Mine License Tax Return Page 2

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