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Last Updated: 11/8/2018

Production Tax

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2018 Production Tax Rate

The 2018 Production Tax base rate is $2.751 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. 

​2017 Rate x​ ​(2017 IPD/2016 IPD) ​= ​2018 Base Rate
​$2.701 ​x ​114.275/112.190 ​= ​$2.751

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.


Minnesota Mining Tax Guide

The 2018 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.