By Alaska Legislative Digest

House Bill 156, a bill to revise Alaska mining tax law as well as increase taxes, is up for an initial hearing in the House Ways and Means Committee for Wednesday, Jan. 30. Current mining tax rates are based on a graduated scale that increases with net income, currently topping out at 7 percent. Mining operations are now exempt from paying the mining license tax for the first 3 ½ years of production. House Bill 156 changes this to a deferral payable over 10 years. Rates are increased by 2 percent per income bracket with an additional marginal tax bracket for net income over $1 million to be taxed at 11 percent.