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Dirt Tax
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The release of President Trump's Fiscal Year 2018 Budget Proposal unfortunately included four misguided proposals that would have had a very negative impact on the mining industry in the United States.


The proposals included: 1) an eight percent royalty on new mining operations on federal lands; 2) a four percent royalty on existing mining operations on federal lands; 3) a leasing system for hardrock minerals; 4) a “dirt tax” of 7.8 cents per ton of materials for crude ore, waste and dirt displaced at mining operations on all lands.  


NISA and others were loud in their opposition to this proposal.  By working with the Western Caucus and Chairman Paul Gosar (R-AZ) a letter of opposition was sent to the Office of Management and Budget (OMB) and the Department of Interior.  NISA along with other industry allies were able to quickly get 45 House Republicans on the letter, which had a very powerful impact.  Additionally, NISA was able to work with allies in the Senate and know that several Senators, including Barrasso, reached out to OMB directly to voice their strong displeasure of the proposals.  

The Administration paused when they heard industry pushing back, and then completely scrapped these proposals as a result of all of the Congressional push back they received.  As a result, none of that language appeared in the President’s Budget Proposal for FY ’18 when was released.  


 The revival of these proposals, even under a new, more "business-friendly" Administration is a there are still significant challenges and risks to the mining sector. 


Please use the the links below to view both letters to the Administration.