January 2, 2012

Here it is, nearly Christmas and the mining audits promised earlier in this year have yet to begin. Nevada’s “Mining Oversight and Accountability Commission” created by SB 493 held its first meeting yesterday. (Agenda)  The commission was created after the Nevada Tax Department admitted it had not audited mines for at least two years.

In part, the bill states:

“… requires the Commission to provide oversight of compliance with Nevada law relating to the activities of each state agency with respect to the taxation, operation, 
safety and environmental regulation of mines and mining in this State.” SB 493

Why so late in meeting about mines? Could it be the statute of limitations was run-out so mines will not have to pay what they should have?  You bet.

As Desert Beacon stated today:

“The three year statute of limitations on tax collection enforcement cases could use an upgrade.  Why is the state limited to 3 years for collecting back taxes when the limit on filing for contract enforcement is 6 years?  Lease enforcement cases can be filed within 4 years.  [C&Assoc.]   If a corporation hasn’t been audited for two years because there are no trained auditors, and if it takes another year to do a proper audit — voilá, the statute of limitations means the state has paid for the audit, and if there are taxes due there is no way they can be collected.”  “Nevada: Quick Clips“, Desert Beacon, December 21, 2011

The current Tax Department under Sandoval appears no better than Gibbons. This is no surprise. Sandoval and mining are intertwined parasites feeding on Nevada’s economy. They sap  Nevada’s vitality by taking its natural resources resources and corrupting the political process. They do so with impunity.  For example, Sandoval’s law firm helped mines and provided lobbyists at the legislature this year and the result has been delays.

This is all part of Sandoval’s plan… start audits late (2012) to get past the statute of limitations  and protect mining from not only taxes but also environmental regulations. Though the commission is supposed to look at environmental regulations it won’t do so with any determination. It will accept whatever the Division of Environmental Protection says.

Note on the proposed constitutional amendment:

Though a constitutional amendment, SJR15  concerning mining taxes was passed unanimously this year and it must be passed again in 2013 before it goes to the voters for final approval.  My assessment: The proposed amendment will not be approved. I doubt it will make it through the 2013 session and it won’t make it to the ballot if it does. The mining industry has millions to spend and most importantly time in which to side-track any measure through its lobbying power and litigation. Having Sandoval as an advocate also helps.