TAX LAW
Adam Beyer
In Fairbanks Gold Mining, Inc. v. Fairbanks North Star Borough Assessor, 488 P.3d 959 (Alaska 2021), the supreme court held that value accrued from waste stripping was not exempt from local revenue taxation. (Id. at 966). Under Alaska law, “natural resources in place” are exempt from local government taxation. (Id.). This case arose after a mining company disputed a local tax assessor’s valuation of its mine, arguing that waste stripping—the process of removing “economically barren surface materials”—should not be considered in the valuation under this statute. (Id. at 962–63). After appealing unsuccessfully to the local Board of Equalization, the company appealed to the superior court, which ultimately affirmed the decision of the Board. (Id. at 964–65). On appeal to the supreme court, the company argued that any value attributable to waste stripping accrues to the ore deposit itself and is therefore tax exempt. (Id. at 966). The supreme court disagreed, likening waste stripping to any other physical improvement to a property. (Id.). Further, as a matter of statutory interpretation, the text seemed to more naturally countenance ores than waste rocks. (Id.). Affirming the decision of the superior court, the supreme court held that value accrued from waste stripping was not exempt from local revenue taxation. (Id. at 966).
