THE VALUATION OF MINES AND OIL PROPERTIES 251 
by the owner). In 1915, the assessed value was fixed at 25 per 
cent of the gross annual proceeds or the net annual proceeds 
whenever this exceeds 25 per cent of the gross proceeds. Im- 
provements are assessed at the same rate as other property in 
the vicinity is assessed. It is claimed in Colorado that this 
law permits the owner of a large idle group of claims to pay 
no greater tax than a prospector actually working a single claim. 
Idaho, Montana, Nevada, New Mexico and Utah tax the net 
proceeds of mining properties. 
In Idaho the net proceeds are used as a basis for the assess- 
ment. Improvements are assessed at full cash value. The 
ground of undeveloped claims is taxed on the prices paid to the 
U. S. Government when they were purchased. 
Montana bases its mine tax on the net proceeds. The surface 
is assessed at the price paid to the U. S. Government ($5 per 
acre for metal mines and $2 per acre for coal). If the sur- 
face is more valuable for other purposes, it is assessed at the 
market value of such property. Surface improvements are taxed 
at market or local value. 
Nevada assesses all patented claims at $500 unless it can 
be proved that over $100 worth of work has been done during 
the year. Improvements are assessed at local value. A tax is 
levied on the net proceeds of all operating mines. By deduct- 
ing such charges for operation, transportation and reduction or 
sale of output as the State Tax Commission permits, from gross 
value of the production, the net proceeds are estimated. No 
deduction for office expenses other than those of operating 
offices are permitted. The salaries of mine officials are limited. 
The investment in surface plant is not depreciated nor is the 
redemption of any investment in mine ground or prior develop- 
ment permitted. By an agreement between the Tax Commis- 
sion and operators, future levies were to be made only on 6o 
per cent of the net profits or the same percentage which is applied 
in assessment of other property. During 1913, this percentage 
has been raised to 70 per cent by the Tax Commission. 
New Mexico has placed its mine taxation in the hands of a