This report provides a discussion of the appropriate procedures for conducting an economic analysis of proposed new taxes or changes in taxes on owners and operators of solid mineral deposits. Price elasticity of demand and supply are emphasized as key factors in determining the incidence of a mineral tax and the degree to which a mineral tax can be passed on by mine operators within a state to citizens of other states. Income, property, and severance taxes are the focus of the report; however, it is emphasized that the interrelationships between these taxes, their use at the several taxing levels (federal, state, and local), and with other government- mandated charges should be incorporated as part of an analysis of tax changes. Constitutional provisions set important constraints on tax alternatives available to state and local governments. Principles guiding good tax practice are provided, and the relative advantages-disadvantages of the major taxes are discussed. Three analytical methods are described and several case studies are discussed. The cases, along with their detailed solutions, provide easily followed concepts.