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State mineral production taxes and mining law reform

Author

Listed:
  • Dobra, John
  • Dobra, Matt
Abstract
Fuel and leasable minerals mined in the United States have historically been subject to federal royalties while locatable minerals have not. In recent years there have been multiple attempts to alter this policy and subject locatable minerals to federal royalties as well; most recently the preliminary 2012 Obama budget included a gross royalty on hard-rock mining on public lands. This paper analyzes the issue of imposing such federal royalties from both a legal and economic perspective. From a legal perspective, it is argued that the state of western property rights precludes royalties on currently extant claims so revenues from a royalty would not be realized for many years. From an economic perspective, it is argued that the effect on revenue would be smaller than one might anticipate due to such a royalty crowding out state levies or encouraging vertical disintegration on the part of mining firms to avoid much of the burden of the royalty.

Suggested Citation

  • Dobra, John & Dobra, Matt, 2013. "State mineral production taxes and mining law reform," Resources Policy, Elsevier, vol. 38(2), pages 162-168.
    • Handle: RePEc:eee:jrpoli:v:38:y:2013:i:2:p:162-168
    DOI: 10.1016/j.resourpol.2012.10.005
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Kulczycka, Joanna & Wirth, Herbert & Hausner, Jerzy, 2017. "Polish tax policy - its impact on the mineral sector," Resources Policy, Elsevier, vol. 52(C), pages 72-80.
    2. Paredes, Dusan & Rivera, Nathaly M., 2017. "Mineral taxes and the local public goods provision in mining communities," Resources Policy, Elsevier, vol. 53(C), pages 328-339.
    3. Eduardo A. Haddad & Jaime Bonet-Morón & Gerson Javier Pérez-Valbuena, 2022. "Impacto regional de las regalías en Colombia," Documentos de trabajo sobre Economía Regional y Urbana 309, Banco de la Republica de Colombia.
    4. Oyarzo, Mauricio & Paredes, Dusan, 2019. "Revisiting the link between resource windfalls and subnational crowding out for local mining economies in Chile," Resources Policy, Elsevier, vol. 64(C).
    5. Oyarzo, Mauricio & Paredes, Dusan, 2021. "The impact of mining taxes on public education: Evidence for mining municipalities in Chile," Resources Policy, Elsevier, vol. 70(C).

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    More about this item

    Keywords

    Mining; Taxation; Royalties;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • L7 - Industrial Organization - - Industry Studies: Primary Products and Construction
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

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