Three Nevada mining companies have shorted their taxes by $8.7 million since 2008, according to recently completed audits of their tax returns.

The audits of 17 mining operations owned by Eagle Picher, Ormat Nevada and Barrick are the first of an industrywide examination by the Department of Taxation that is expected to extend to 2015.

The scrutiny was sparked last year when lawmakers discovered the state’s tax department had not audited major mining companies for two years.

Critics of Nevada’s mining industry, who have said the industry does not pay enough in taxes, said the audits revealed “outrageous” behavior by the companies.

“In the face of billions of dollars mining companies are taking out of Nevada, it might be minor,” said Bob Fulkerson, executive director of the Progressive Leadership Alliance of Nevada. “It’s the principle. They’re getting such a great deal to begin with, but even that’s not enough to satisfy their greed. That’s what’s outrageous. That’s what’s incomprehensible.”

As a whole, the mining industry paid more than $300 million last year in state and local taxes. The audit findings, some of which are still being disputed, represented just a small portion of that, a mining industry representative said.

“We’re committed to paying what the law requires,” said Tim Crowley, president of the Nevada Mining Association. “There’s no harm in the audits. We always participate in the audit process.”

Crowley noted that some past state audits found that mining companies overpaid their taxes and were due refunds from the state.

READ FULL STORY