Fillable Form M30-P - Production Cost Summary

2016 Form M30-P Instructions

(continued)

b) Supplies. Include all costs of expendable

Line 10

• Partially Allowable Expenses (on a per-

centage basis). Some expenses that are

supplies allocated to the mining process

Administrative Expenses

as defined above.

• Allowable Expenses. Report general op-

allowable from out-of-state headquarters

are purchasing, industrial engineering,

erating and administrative expenses as a

c) Depreciation on Standard Plant and

employee relations, environmental energy

single figure on the summary page. These

Motorized Equipment. “Standard plant”

and engineering and research expenses,

are expenses incurred at the administra-

includes all administrative offices, labs,

but only if these costs can be directly tied

tive and district offices in Minnesota such

garages, shops and associate build-

to Minnesota operations. The expenses

as engineering, accounting, management,

ings and equipment (including roads

must be allocated on a prorated basis.

computer-center, industrial relations, per-

and parking lots); power shovels, drills,

The allocation of allowable expenses to

sonnel, laboratory (ore analysis), safety,

compressors, welding and burning

non-allowable expenses is the same as the

research and experimental expenses.

equipment, generators and light plants;

allocation of beneficiation labor to min-

These expenses must pertain directly to

railroad locomotives, cranes, cars, plows,

ing labor.

the mining or beneficiation of taconite.

tracks, roadbeds and associated facilities,

conveyors, skip hoists, skipways, screen-

• Nonallowable Expenses. Certain

Line 11

ing plants and ore dumping pockets; all of

expenses incurred by the district offices

Miscellaneous

which are used in the movement of crude

in Minnesota, and managing agents or

Includes insurance for Minnesota facilities

ore from a mine to a beneficiation plant,

headquarter offices outside Minnesota,

and equipment plus the employer-paid costs

or of finished product (pellets, concen-

are not allowed as deductions. These are

of employee insurances (medical/dental),

trate or merchantable ore) to railroad

functions performed for other aspects

pensions, Social Security taxes and worker’s

cars of a common carrier. Do not include

of the parent corporation, managing

compensation insurance. Do not include

land acquisition costs in the value of

agents, or district office not related to the

development expenses.

assets.

production of ore.

Attach a detailed schedule for line 11.

“Motorized equipment” includes all

Examples include work performed for

trucks, automobiles, trailers, dozers,

federal income tax requirements, timber

Line 12

graders and rubber-tired and crawler-

operations, management of real-estate

Royalties

mounted cranes.

holdings or investments in other projects.

Include the total royalties paid or accrued

Also not allowable are MSHA fines, other

on production included on Form M30-I,

The rates of depreciation for mining are

fines, demurrage charges, contributions,

line 12.

on a straight-line basis. The standard

investment expenses, federal income

plant is calculated at a 4 percent rate.

In the space provided, enter the amount

taxes, public-relations expenses, occupa-

Motorized equipment is calculated at a

reported on line 12 that is attributable to

tion taxes, Minnesota corporate franchise

10 percent rate. Depreciation is limited,

overriding royalties.

taxes and employee benefits (for other

however, to 90 percent of the costs of all

than personnel in a direct relationship

depreciable assets on hand at the end of

Line 13

to Minnesota operations). Any allowable

the taxable year.

Taxes

benefit expenses must be reported on

Enter the total production tax paid from the

The same election as for a beneficiation

line 11.

2015 taconite production tax report.

plant can be made for a standard plant

Real-estate taxes and ad valorem taxes are

for use of a tonnage basis for computing

not normally allowable deductions. The

Information and Assistance

depreciation for nonmovable property

only exception is land within the general

Website:

prior to exhaustion of a mine.

plant and mine parameter containing a

Email:

mining.taxes@state.mn.us

mine apparatus. Any real-estate tax paid

Phone: 218-744-7424

to the county on such property is an al-

lowable deduction.

We’ll provide information in other formats

upon request to persons with disabilities.

Form M30-P - Production Cost Summary - 2016 Page 3

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