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Governor Signs Mine Production Tax

WKAR File Photo

Governor Rick Snyder has signed a tax overhaul that he says will encourage more mining in northern Michigan. 

The new tax will be based on how much iron, nickel, copper and other metals are pulled from the ground and will replace a complicated hodgepodge of local taxes. Humboldt Township Supervisor Joseph Derosha  says his region will benefit from a mining tax that’s simple and easy to understand.

“This tax will create new jobs across the Upper Peninsula and the state of Michigan," he says.

Humboldt Township near Marquette is home to a closed iron mine that’s about to re-open. The U-P has a 6.8% jobless rate, and 10,000 people looking for work.

Most of the tax will stay with local governments. But part of it will go to a rural development fund that will help find new job opportunities after mines close.

Rick Pluta is Senior Capitol Correspondent for the Michigan Public Radio Network. He has been covering Michigan’s Capitol, government, and politics since 1987. His journalism background includes stints with UPI, The Elizabeth (NJ) Daily Journal, The (Pontiac, MI) Oakland Press, and WJR. He is also a lifelong public radio listener.
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