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Form 47 — Instructions
Mine License Tax Return
File Form 47 for each year you mine or receive Cyanidation Facilities
royalties from mining any of the following: quartz, Cyanidation is the method of extracting precious
quartzite, gold, silver, copper, lead, zinc, coal, metals from ores by treatment with cyanide solution as
phosphate, limestone, stone from quarries, or other the primary leaching agent. If your mining operation
metals or minerals. Even if no tax is due, you must includes a cyanidation facility, check the box in the
file Form 47 each year until mining operations have area above line 1.
permanently ceased. Use the same tax year on
your Form 47 as you used on your federal income Initial Return
tax return. If this is your first year of mining this location in Idaho,
The tax is due on the 15th day of the fourth month check the Initial Return box in the area above line 1.
following the end of the tax year. If you have an
automatic six-month extension of time to file your Final Return
income tax return, you have the same extension of Filing using Method A. If you’ve permanently
time to file your Form 47. ceased all mining operations at this location and sold
File a separate return for each mine or group of all stockpiled inventory, check the Final Return box in
mines. If you own two or more separate mines, the area above line 1.
only those mines grouped to compute the depletion Filing using Method B. If you’ve permanently
allowable for federal income tax purposes can be ceased all mining operations at this location, check
treated as one property. the Final Return box in the area above line 1.
Use Method A or Method B to compute the mine
license tax if you mine ores on public lands that How to Compute the Tax
the U.S. Department of Interior computes mineral Method A
values for federal royalty purposes. Include your Use this method if you receive royalties or if you
written election with the first Idaho Mine License didn’t elect Method B. This method of computing net
Tax Return you file. To change methods, get written value of ores mined or royalties received is found in
permission from the Tax Commission before your Idaho Code section 47-1202(a).
tax return is due. If you receive royalties or if you
Line 1. Enter the taxable income from mining
don’t elect Method B, use Method A.
(defined in Section 613 of the Internal Revenue
Determine the net value separately if your mining Code and Treasury Regulation 1.613-5) or the gross
activity includes both receiving royalties and amount received as royalties. This is the amount
extracting ores. The separate determinations can’t used in your federal percentage depletion expense
be netted together or offset against each other. computation.
Amended Returns Line 2. Enter the depletion expense allowed on
You can use this form as an original return or an your federal income tax return related to the receipts
amended return. If you’re filing this form as an reported on line 1 of this return. Include a copy of the
amended return, check the box at the top of the federal depletion expense computation.
form. Enter the applicable reasons for amending
Method B
as listed below. Complete the entire form using the
corrected amounts. Line 4. Enter the gross value of ores mined as
determined by the U.S. Department of the Interior.
1. Federal Audit
Include a schedule detailing your computation.
2. Other - Include an explanation
Line 5. Enter the total of all direct mining and Idaho
Mine License Account Number transportation costs attributable to the production of
Enter the nine-digit mine license account number the ores to the point at which the ores were valued
provided by the Tax Commission for this mine or for line 4 above. Include a schedule itemizing these
group of mines. If this is the initial return for this mining costs.
mine or group of mines, leave this line blank. File a
separate return for each account number.
EIN00085 08-04-2020 Page 1 of 2
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