02/21/2012 03:30 PM Senate RESOURCES

               SB 176-EXEMPTIONS FROM MINING TAX                                                                            
4:51:43 PM                                                                                                                    
CO-CHAIR WAGONER  called the  Senate Resources  Committee meeting                                                               
back to  order and announced SB  176 to be up  for consideration.                                                               
It had been  heard on February 17 when there  was some discussion                                                               
about  whether  the tax  would  still  apply to  possible  future                                                               
mining  of rare  earth  elements by  removing "marketable  earth"                                                               
from the definition of "mining." He  asked Ms. Bales if she could                                                               
respond to that concern.                                                                                                        
                                                                                                                                
4:52:39 PM                                                                                                                    
JOANNA  BALES,  Deputy  Director,  Tax  Division,  Department  of                                                               
Revenue (DOR),  said she  did confer with  the Department  of Law                                                               
(DOL) about  Senator Wielechowski's question and  apologized that                                                               
the  confusion was  more hers,  but they  agreed that  rare earth                                                               
elements are taxable under the  current definition of "mining" as                                                               
a  "valuable metal  ore or  a mineral."  Their interpretation  of                                                               
"marketable  earth," historically,  has  been that  it is  things                                                               
such as top soil and peat.  She said whenever they have confusion                                                               
with interpretations, they also  go to the dictionary definitions                                                               
and in  this case the  definition of  "earth" is "soil."  So they                                                               
felt  confident  that  excluding   "marketable  earth"  does  not                                                               
exclude the rare earth elements.                                                                                                
                                                                                                                                
4:54:05 PM                                                                                                                    
ASHLEY BROWN, Attorney, Civil Division,  Department of Law (DOL),                                                               
said he didn't have any more comments [on SB 176].                                                                              
                                                                                                                                
CO-CHAIR  PASKVAN  moved to  report  SB  176  [CSSB 176(  ),  27-                                                               
LS1201\B]  from  committee  with individual  recommendations  and                                                               
attached fiscal note.  He disclosed that he has an  interest in a                                                               
gravel operation in Interior Alaska.                                                                                            
                                                                                                                                
CO-CHAIR WAGONER withdrew  his objection to adopting  the CS, and                                                               
finding  no  further  objections, announced  that  CSSB  176(RES)                                                               
moved from the Senate Resources Standing Committee.