Introduction
The Land Board directed IDL to seek amendments to Idaho Code § 47-12, License Tax for Privilege of Mining and Extracting Ores and Idaho Code § 47-17, Idaho Abandoned Mine Reclamation Act. The recommended changes include:
- Directing 100% of the state’s Mine License Tax to the Abandoned Mine Reclamation Fund.
- Converting the Abandoned Mine Reclamation Fund into an interest-bearing account.
Purpose
The Abandoned Mine Reclamation Fund currently receives 34% of the mine license tax in Idaho. The remaining 66% of the mine license tax is deposited into the General Fund. This revenue has declined over the last seven years and is no longer sufficient to fund the Abandoned Mine Lands program. Without additional revenue, the Abandoned Mine Reclamation Fund is predicted to drop to zero in FY2027. This would leave the State of Idaho with no funding to address the hazards present at thousands of abandoned mines across the state. These hazards include open adits and shafts as well as mine waste and mine-impacted waters that may threaten human health and the environment.
Fiscal Impact
The overall amount of tax paid will not be affected, so the mining companies paying the tax will not be impacted. For Fiscal Year 2021, the amount of General Fund revenue collected by the Mine License Tax was about $24,000 out of over $4.5 billion in total General Fund revenue, so the impact to the General Fund will be negligible.
The Abandoned Mine Reclamation Fund will receive approximately $40,000 more every year based on average Mine License Tax returns from the last five years. Additional funding will be generated each year through interest earnings.