Mining’s second assertion begs the questionoif whether the deductions properly reflect the cost of getting the ore out of the earth. Many of the deductions are highly questionable. The deductions include oddities like fire insurance and marketing costs (about $80-90 million), aspects specifically questioned by legislators during yesterday's hearing.
Could this bill result in a lawsuit? Sure, any bill can. Would mining be successful in such an endeavor? Highly doubtful, considering many of the deductions have been added year after year, and many of which are not considered deductions for many other industries (aka "the cost of doing business" which is not deductible). Furthermore, such a lawsuit may motivate the state to find other ways to get payback via additional tax methods.
My solution to all these problems would be to introduce a bill that taxes the extraction of minerals. You wouldn’t be taxing proceeds, but rather taxing the process of extracting anything from the ground. Again, environmental concerns are a justification for such a tax.
Bottom line: in comparison to anywhere else in the world, Nevada mining companies are paying pennies, and Nevadans are getting the shaft. We have an education system and essential services to fund. The Legislature should do what it takes instead of coddling to wealthy lobbies.