Slumping gold prices digs hole in Nevada coffers

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Updated: 5/21/2014 10:44 am

CARSON CITY, Nev. (AP) — A slump in gold prices is creating a hole in Nevada's state coffers.

State officials say revenue for the net proceeds tax is about $70 million short of projections made a year ago.

The governor's office says the shortfall is a relatively small part of the $6 billion state budget.

Mining companies pay a net proceeds tax on minerals they take out of the ground. It's in addition to payroll, property and sales taxes.

The budget approved by lawmakers last year assumed Nevada would get $93 million in net proceeds from mining. Instead, it took in only $20 million.

Nevada representatives blame the lower gold prices and higher production costs.

The state's Economic Forum, which forecasts tax revenues, meets June 3.

©2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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