Abstract
The potential profitability level of a mineral property depends on the geologic, engineering, and economic characteristics of the deposit, but may also depend to a large extent on the local tax structure. This Bureau of Mines study uses the Bureau's mine simulator (minsim) economic evaluation computer program and three hypothetical mineral properties to examine the differential impact on profitability of the tax structures of eight mineral-producing states. Wide variations between states in calculated rates of return indicates that tax structure could in some instances be the determining factor (given identical deposits) in a decision on whether or not to develop a property.