Mining Claim Fees Going Up Again

[Jim P.]

Thanks for the reminder "Clay",

 

Any sign of an updated maintenance fee waiver form for those with less than 10 claims?

 

Thanks again...Jim P.

[Swegin]

26 minutes ago, Jim P. said:

Any sign of an updated maintenance fee waiver form for those with less than 10 claims?

That form was updated, it now expires on May 31st 2027.

 

https://www.blm.gov/sites/default/files/docs/2024-07/3830-002.pdf\

[Jim P.]

On 7/4/2024 at 7:46 AM, Swegin said:

That form was updated, it now expires on May 31st 2027.

 

https://www.blm.gov/sites/default/files/docs/2024-07/3830-002.pdf\

Thank you! 

[Clay Diggins]

Just a reminder less than a week to file for mining year 2026. If you miss the deadline you will lose your claim - no do overs.

[Caliche]

For a single placer claim on USFS land in the remote woods or desert in California, could anyone share a rough idea of the annual property tax (in counties that charge it). Is it significant and prohibitive, or a minor portion of the overall cost?

[GB_Amateur]

15 hours ago, Caliche said:

For a single placer claim on USFS land in the remote woods or desert in California, could anyone share a rough idea of the annual property tax?  Is it significant and prohibitive, or a minor portion of the overall cost?

So a) the claim is on Federal Land, and b) you don't own the property.  I'll trust @Clay Diggins or some other knowledgeable claim owner give you the lowdown.

[Caliche]

^ Agreed, thanks.

[Redz]

You own the mineral rights and some counties charge property tax. If you staked the claim the cost was not huge and the property tax relects that. If you purchased a claim it would be somewhat different, but I staked, so am less clear here.

[Clay Diggins]

Mineral rights are rights in real property. A few states tax all forms of real property. Counties and States don't tax land, they tax the beneficial use rights inherent in real estate. Unfortunately for some of those states they fail to recognize that the beneficial use mineral rights are self depleting if exercised. You can't grow minerals - once you've mined it the mineral value of a property drops to near zero.

States also tax the income from the extraction and sale of the minerals. In combination with other tax regimes this can create a problem since the real value of the mineral estate (and it's tax value) diminishes as the minerals are extracted. Some states allow an offset for the diminished value of the mineral rights (Nevada) but other states just add tax to tax to produce more taxes (California) even as the value of the mineral rights are being reduced by mining.

Some states also tax the transfer of mineral rights (California). The more taxes and the more hoops to jump through the less opportunity for the mineral owner to enjoy the beneficial use of their property. Other than a state's regulatory environment property, income and transfer taxes are one of the largest factors that restrict or encourage mineral development in any given state.