Administrative Rules of Montana
Department 42 - REVENUE
Chapter 42.25 - NATURAL RESOURCES TAXES
Subchapter 42.25.11 - Net Proceeds Tax on Miscellaneous Mines
Rule 42.25.1117 - MARKETING, ADMINISTRATIVE, AND OTHER OPERATIONAL COSTS

(1) All expenses for supplies may be deducted in computing net proceeds as provided under ARM 42.25.1102 and 42.25.1103.

(2) Actual marketing costs directly related to the sale of mineral products processed up to the point of valuation for net proceeds purposes may be deducted. These expenses may include the applicable salesperson's salary and/or commission, technical assistance, and advertising, but only to the extent these expenses pertain specifically to the mineral product processed up to the point of valuation. Marketing expenses related to mineral products processed beyond that point may not be allocated back to mineral products that are not sold until further processing has occurred. Technical and scientific testing costs will not be considered marketing, but may be deductible if they meet the requirements of 15-23-503(1) (h), MCA.

(3) All expenses for fire insurance, boiler and machinery insurance, and public liability insurance paid for the mine, reduction works or beneficiation process are deductible.

(4) No payments for taxes on production, license taxes, corporation, income, sales, real estate, personal property, and excise taxes may be used as a deduction.

(5) No expenses for land lease rental or for land lease holdings may be used as a deduction.