Idaho State Statutes - Idaho Attorney Directory

For the purpose of measuring and determining the amount of tax to be paid
under the provisions of section 47-1201, Idaho Code, the royalties as defined
in subsection (b) of section 47-1201, Idaho Code, or the net value of ore
mined shall be computed under one (1) of the following methods at the election
of the taxpayer. Such election, once made, shall be binding for all succeeding
years unless the taxpayer secures permission from the state tax commission to
change to another method:
(a) Ores mined within the state shall be valued by deducting from the
gross value of the ore, all costs of mining and processing such ore, using the
formula prescribed in section 613 of the Internal Revenue Code and Treasury
Regulation 1.613-5 for computation of the net income from mining for depletion
purposes, less the deduction of depletion as computed under section 613 of the
Internal Revenue Code and Treasury Regulation 1.613-5; or
(b) Ores mined within the state shall be valued using the gross value
determined by the U.S. Department of the Interior for computation of the value
of minerals on public lands for federal royalty purposes, less the following
deductions:
(1) all costs of mining and transporting such ore to the point at which
the value for federal royalty purposes is determined by measurement of the
quantity of ore mined; these costs to include only those directly incurred
in and attributable to the actual mining and transportation operation in
the state of Idaho, and
(2) the applicable portion of the federal deduction for depletion,
allocated on the ratio of the gross value of the ore used for this
computation, to the gross value of the ore used in the federal depletion
computation.

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