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Last Updated: 11/20/2017

Production Tax

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Minnesota Mining Tax Guide

The 2017 Minnesota Mining Tax Guide is now available.
 

Did you know you can access the most up-to-date information right here?  No need to wait a year for the Guide. See Mining Statistics where we update our data charts as information becomes available.

2017 Production Tax Rate

The 2017 Production Tax base rate is $2.701 per taxable ton. Additional tax of 3 cents per ton applies for every 1 percent the product’s iron content exceeds 72 percent, when dried at 212 degrees Fahrenheit.

The Production Tax rate is indexed each year, based on changes in the Gross Domestic Product Implicit Price Deflator (GDP IPD). To calculate the rate, we multiply the previous year’s rate by the percentage change in the 4th quarter GDP IPD, as shown below. 

​2016 Rate x​ ​(2016 IPD/2015 IPD) ​= ​2017 Base Rate
​$2.659 ​x ​112.229/110.504 ​= ​$2.701

The GDP IPD is published each quarter by Bureau of Economic Analysis, part of the U.S. Department of Commerce.   View the most recent GPD IPD data on the Bureau of Economic Development webpage.