ARIZONA MINING PERMITTING GUIDE - AZGS Document Repository

Severance Tax
Arizona Mining Permitting Guide
Arizona Department of Revenue
License and Registration
1600 West Monroe
Phoenix, AZ 85007-2650
(602) 255-2060 or toll free from area codes 520 and 928(800) 843-7196
www.azdor.gov
PERMITS, AUTHORIZATIONS OR FILINGS:
Severance Tax
Not a permit, but necessary to conduct metal mining
LEGAL AUTHORITY:
Pursuant to A.R.S. § 42-5202 the Department collects the affiliated excise tax, denominated
as a severance tax.
CONDITIONS REQUIRING PERMITS, AUTHORIZATIONS OR FILINGS:
Severance taxes are excise taxes on natural resources "severed" from the earth. They are
measured by the quantity or value of the resource removed or produced.
The amount of the severance tax levied on a severer (miner) engaged in the business of
mining shall be determined by multiplying the net severance base by two and one-half per
cent.
The net severance base is fifty per cent of the difference between the gross value of
production and the production costs.
EXEMPTIONS:
NA
FEES:
NA
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