Section R15-5-902. General

A.      A person engaged in the business of mining is subject to tax under the mining classification on the gross proceeds of sales or gross income received from the sale of a nonmetalliferous mineral product to a purchaser that resells the product in the ordinary course of business.

B.       A person engaged in the business of mining is not subject to tax under the mining classification on the gross proceeds of sales or gross income received from the sale of a nonmetallif- erous mineral product to a person engaged in business classi- fied under the prime contracting classification if the nonmetalliferous mineral product is to be incorporated into a structure or project as part of the business.

C.      A person engaged in the business of mining is subject to tax under the retail classification on the gross income received from the sale of a nonmetalliferous mineral product to a final consumer.

D.      A person engaged in the business of mining shall not deduct from the tax base amounts paid as royalties.

Historical Note

Amended by final rulemaking at 6 A.A.R. 2952, effective July 18, 2000 (Supp. 00-3).