Nevada Supreme Court refuses to consider repealed mining tax law

By Cy Ryan

Wednesday, Nov. 16, 2011 | 3:53 p.m.

CARSON CITY — The Nevada Supreme Court has refused to consider the validity of a law imposing an additional tax on mining companies because the law has been repealed.

The court Wednesday dismissed the appeal of State Controller Kim Wallin, who asked the court, nevertheless, apply an exception because of the public interest in the case.

The 2010 special session of the Legislature imposed the tax, but District Judge James Wilson ruled the mining claims fee was unconstitutional. The 2011 Legislature repealed the tax and instead eliminated some of the tax deductions enjoyed by mining companies.

The state has now refunded $8.1 million to the mining companies from taxes previously paid.

The court agreed with the mining companies that the repeal of the law, coupled with a refund, makes the appeal moot.

The controller, through her lawyers, argued the case should be considered in the public interest.

“The possibility that the Legislature might enact similar provision in the future is too remote and speculative to warrant involving the exception in this case,” the court said in its ruling.

The state Tax Commission is going to consider regulations next month to reduce the deductions of mining companies, which is expected to yield $48 million to the state and counties during the biennium.