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Last Updated: 10/26/2015

Distributions to Counties

Counties within the Taconite Assistance Area receive several types of aid from the Production Tax. 

County Fund​

Counties with mining facilities that are mining and producing concentrate receive 10.525 cents per taxable ton, subject to adjustment by the aid guarantee. Fifty percent of the amount is distributed to counties where mining is conducted; the remaining 50 percent is distributed to counties in which concentrate is produced. The distribution is determined on a mine-by-mine basis.

If mining and concentrating take place in a single county, the entire 10.525 cents per taxable ton is distributed to the county. If a mining facility is mining in more than one county, the 50 percent portion is split based on either a percentage of taconite reserves or a four-year production average. Most taconite mines are mining in two or more areas.

If a mining facility produces concentrate in more than one county, the 50 percent portion is split based on hours worked in each county.

The total distribution is reduced by the amount of aid received by a county that has a mine-owed power plant within its boundaries that provides the primary source of power to a mining facility in another county. One cent per taxable ton is distributed to the county in which the power plant is located.

County Road and Bridge Fund

Each county receives a portion of the aid that is deposited in the County Road and Bridge Fund. The distribution is 10.525 cents per taxable ton subject to adjustment by the aid guarantee and is determined using the same criteria as the County Fund above.

Taconite Railroad Aid for Counties

Counties receive a set amount of aid equal to what they received in 1977 from the Taconite Railroad Gross Earnings Tax, which was repealed starting in 1989.

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