No. 13524
IN THE SUPRETIIE COURT OF THE STATE OF MONTANA
1977
CYPRUS MINES CORPORATION, a Corporation,
Plaintiff and Respondent,
MADISON COUNTY, a political subdivision
of the State of Montana; ALICE FLAGER,
County Treasurer of Madison County; and
the DEPARTMENT OF REVENUE OF THE STATE
OF MONTANA,
Defendants and Appellants.
Appeal from: District Court of the Fifth Judicial District,
Honorable Frank E. Blair, Judge presiding.
Counsel of Record:
For Appellants:
R. Bruce McGinnis argued, Helena, Montana
For Respondent :
Kline and Niklas, Helena, Montana
John R. Kline argued, Helena, Montana
Submitted: January 17, 1977
Decided :
MAR "i137T
Mr. Justice Gene B. Daly delivered the Opinion of the Court.
The Department of Revenue of the State of Montana (De-
partment) appeals from the judgment of the district court, Madison
County. At issue is respondent's net proceeds of mines tax, a
tax in lieu of "ad valorem" property tax on net proceeds of its
mines. Pfizer v. Madison County, 161Mont. 261, 505 P.2d 399.
The court, sitting without a jury, found plaintiff taxpayer was
compelled to pay excess taxes when certain deductions on its net
proceeds of mines statement were disallowed. The court ordered
the treasurer of Madison County to refund the excess taxes.
Plaintiff is Cyprus Mines Corporation, (Taxpayer), an
international corporation which owns and operates the Yellowstone
and Beaverhead Mines, talc mines located in Madison County; a
storage facility and wash plant located at Alder, Montana; and a
grinding mill located at Three Forks, Montana. Taxpayer operates
these three Montana facilities through Cyprus Industrial Minerals
Company, which also has operations in Nebraska, California, Texas,
Maryland, South Caroline, Georgia, Tennessee, Nevada and Ghent,
Belgium.
Taxpayer mines talc at its Yellowstone and Beaverhead Mines.
It transports the talc to its other facilities for processing by a
or
grinding/upgrading procedure known as beneficiation. The beneficiated
talc is either sold or further milled to various fine sizes. Talc
is used in the manufacture of paper, paint, ceramics, catalytic
converters, spark plugs, vinyl flooring, rubber, plastics, cosmetics
and pharmaceuticals.
The