Tax and Economic Benefits
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| Tax Comparison for Mining |
| Tax Comparison |
Annette Island |
Ketchikan, AK |
Seattle, WA |
Los Angeles, CA |
British Columbia2 |
| Federal |
35%1 |
35% |
35% |
35% |
39.12% |
| Corporate |
0% |
$4500 + 9.4% over $90,000 |
n/a |
8.84% |
4.5% on $300,000 + 13.5% after |
| Property |
0% |
$13.20/$1,000 |
$13.52/$1,000 |
$10.73/$1,000 |
$22.00/$1,000 (rural) |
| Mining |
0% |
$4,000 + 7% over $100,000 |
n/a |
n/a |
2% to 13% |
| Sale |
0% |
n/a |
8.60% |
8.25% |
7.50% |
| Production royalty |
0% |
3% of net income on State lands |
n/a |
n/a |
n/a |
| Business and Occupation |
0% |
n/a |
$4.84/$1,000 of value |
n/a |
n/a |
|
NOTE: All information
here is for pre-feasibility level engineering estimates only, for
final figures an accountant should be consulted.
1) If MIC is majority owner in Joint Venture, deal may be structured so that
no federal taxes are paid on quarry production.
2) British Columbia tax numbers are presented in Canadian Dollar
Amounts. |
| Annette Island receives the following tax benefits
to encourage business on the Reservation
The credit is calculated on wages (including employee health insurance
costs) up to $20,000 for each employee. Provides business with an
incentive to hire and retain individuals who are enrolled members
of an Indian tribe who live on or near an Indian reservation.
Two year credit against Federal tax liability for business that
hire long term welfare recipients. Credits up to $3,500 for the
first year, and $5,000 for the second year for each new hire.
Credit up to $2,400 against Federal taxes for businesses for each
new hire from groups that have high unemployment rates or other
special employment needs: EZ youth ages 18 to 24, welfare recipients,
ex-felons, 16 to 17 year old EZ resident summer hires.
Special accelerated depreciation rules apply to qualified property
placed in service on an Indian reservation after 1993 and before
2004. Shorter recovery periods to figure your depreciation deduction
for qualified property result in a larger annual deduction.
For a more detailed discussion visit www.ezec.gov or obtain IRS
Publication 954, "Tax Incentives for Empowerment Zones and
Other Distressed Communities).
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