2013 Arizona Revised Statutes
Title 42 - Taxation
§ 42-5201 Definitions
In this article, unless the context otherwise requires:
1. " Gross value of production" means the sum of the value of production determined for each metalliferous mineral mined by the severer.
2. " Metallic product" means any metalliferous mineral or metalliferous mineral product.
3. " Metalliferous mineral" means copper, gold, silver, molybdenum or other metal or any ore or substance containing such metals including turquoise that is severed within this state.
4. " Metalliferous mineral product" means the material resulting from the processing of a metalliferous mineral including any concentrate of an ore, any precipitate of a metalliferous mineral or any metal bullion.
5. " Mining" means the activity of extracting from the earth substances that become metalliferous minerals and:
(a) In the case of ore that is customarily milled, concentrated, agitation leached, or vat leached, mining includes all activity from the breaking of ground to the delivery of ore to the primary crusher, including blasting, loading, hauling, including hauling of waste, and dumping. The quantity mined shall be measured after final crushing.
(b) In the case of ore that is not customarily milled, concentrated, agitation leached, or vat leached, mining includes all activity from the breaking of ground to the delivery of the ore to the reduction works, or if the reduction works are located away from the situs of the mining activity, to the point at which the ore is loaded on a means of transport to the reduction works. The quantity mined shall be measured upon delivery to the reduction works, or if the reduction works are located away from the situs of mining activity, upon loading on a means of transport to the reduction works.
(c) In the case of dump or in situ leaching where the leach liquor is precipitated, mining includes all activity from the breaking of ground, if any, to the delivery of the leach liquor to the facility at which precipitation takes place. The quantity mined shall be measured upon precipitation.
(d) In the case of dump or in situ leaching where the leach liquor is converted through a chemical, electrolytic or other means directly from a liquor to a solid metallic mass, mining includes all activity from the breaking of ground, if any, to the delivery of the leach liquor to the solvent extraction or similar facility. The quantity mined shall be measured upon delivery to the solvent extraction facility.
6. " Mining costs" means production costs incurred in mining.
7. " Out-of-state processing costs" means processing costs incurred by the severer out of this state including freight charges incurred for shipping metallic products out of this state.
8. " Price" means the per unit consideration a severer receives from the sale during the reporting period of a metallic product whether sold within or without this state. If a severer engages in manufacturing, fabricating or other transforming activities of a refined metalliferous mineral product before making a sale, the charges made by the severer for such activities shall not be a part of the consideration in establishing the price. If no sales occurred during the reporting period, price shall be derived from the last reporting period in which sales occurred.
9. " Processing" means any non-mining activity that transforms metalliferous minerals into metalliferous mineral products including precipitating, crushing, concentrating, smelting and refining. " Processing" does not include manufacturing or fabrication or other transformation activities beyond refining.
10. " Processing costs" means production costs other than mining costs.
11. " Production costs" means the costs incurred by the severer in mining and processing until the point of sale including but not limited to energy, fuel, labor, supplies, depreciation, transportation and other expenses reasonably allocable to mining or processing including but not limited to labor benefits, property taxes, lease payments for equipment used in mining or processing and support services such as maintenance, security and administration if such services are site specific. Production costs also include selling expenses but do not include severance taxes or depletion expenses. Production costs also do not include corporate salary and office expenses, income taxes, interest expense on debt or corporate capital charges.
12. " Recoverable units" means metalliferous mineral units based on processing or contractual recoveries during the period of production.
13. " Sale" shall have the meaning ascribed to it in section 42-5001.
14. " Severer" means a person engaging in the business of mining.
15. " Severing" means mining.
16. " Value of production" means the price multiplied by the recoverable units of a metallic product mined by the severer.
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