The production exemption guide lists items that are always taxable. Taxable items that are specific to miners include:
Underground mining taxable purchases
- Equipment used in exploration activities
- Equipment used for venting or conditioning the air of the mine – if it becomes a part of the real property
- Equipment used for drainage of the mine if part of the real property
- Maintenance and equipment used to maintain and clean up mining equipment
- Equipment and supplies used for sampling and assaying, other than for quality control
Aboveground, open pit mining taxable purchases
- Equipment used in exploration and discovery activities
- Equipment, materials, and supplies used in real property improvements
- Equipment and supplies used to maintain and clean up the mine and mine equipment
- Equipment and materials used in land reclamation activities
- Equipment and vehicles used to transport people
- Equipment and supplies used to transport finished products
- Equipment and supplies used to transport ore and overburden between geographically separated sites, processing plants, or displosal sites if:
- A substantial break in the production process occurs, and
- The activity doesn’t further the processing of the ore by sorting, sizing, or grading
- Equipment and supplies used in personnel support activities
Note: If the equipment is primarily used for ore extraction purposes, it isn’t taxable.
Other taxable mining purchases
- Office, maintenance, or janitorial equipment and supplies
- Marketing, promotional, sales, or distribution equipment and supplies
- Equipment and supplies to analyze or model financial results
Motor vehicles
Motor vehicles that are required to be licensed are almost always taxable. This includes vehicles with restricted-use plates and recreational-use stickers.