78rTH CONG. , 2 D SESS.-CH. 63 -FEB . 25 , 1944 centum, in the case of metal mines, fluorspar, flake graphite, vermiculite, beryl, feldspar, mica, talc, lepidolite, spodumene, barite, ball and sagger clay, or rock asphalt mines, and potash mines or deposits, 15 per centum, and in the case of sulphur mines or deposits, 23 per centum, of the gross income from the property during the taxable year, excluding from such gross income an amount equal to any rents or royalties paid or incurred by the taxpayer in respect of the property." (b) DISCOVERY VALUE.- Section 114 (b) (2) (relating to discovery 3Stat. 45 . value) is amended by inserting after "fluorspar" the following: "flake 2,§.14 (b) (2). graphite, vermiculite, beryl, feldspar, mica, talc, lepidolite, spodu- mene, barite, potash,". (c) DEFINITION OF GROSS INCOME FROM THE PRoPERTY. -Section 6 U. S .4 ., spp. 114 (b) (4) is amended by adding at the end thereof the following: III, 14(b)(4). "(B) Definition of Gross Income From Property.- As used Ane, p. 4 in this paragaph the term 'gross income from the property' means the gross income from mining. The term 'mining', as "Mining." used herein, shall be considered to include not merely the extraction of the ores or minerals from the ground but also the ordinary treatment processes normally applied by mine owners or operators in order to obtain the commercially mar- ketable mineral product or products. The term 'ordinary "Odminary treat- treatment processes', as used herein, shall include the follow- ing: (i) In the case of coal- cleaning, breaking, sizing, and loading for shipment; (ii) in the case of sulphur-pumping to vats, cooling, breaking, and loading for shipment; (iii) in the case of iron ore, bauxite, ball and sagger clay, rock asphalt, and minerals which are customarily sold in the form of a crude mineral product-sorting, concentrating, and sintering to bring to shipping grade and form, and loading for ship- ment; and (iv) in the case of lead, zinc, copper, gold, silver, or fluorspar ores, potash, and ores which are not customarily sold in the form of the crude mineral product-crushing, grinding, and beneficiation by concentration (gravity, flotation, amal- gamation, electrostatic, or magnretic), cyanidation, leaching, crystallization, precipitation (but not including as an ordi- nary treatment process electrolytic deposition, roasting, ther- mal or electric smelting, or refining), or by substantially equivalent processes or combination of processes used in the separation or extraction of the product or products from the ore, including the furnacing of quicksilver ores. The princi- ples of this subparagraph shall also be applicable in determin- ing gross income attributable to mining for the purposes of sections 731 and 735." 26 uat. . ., Bpp. (d) PERCENTAGE DEPLETION FOR FLAKE GRAPHITE RETROACTIVE TO 111,. §31,736. 1943. -T he amendments made by subsections (a) and (b) inserting Po, pp. 667. flake graphite in section 114 (b) (2) and (4) of the Internal Revenue Ant, p 44; upa Code shall be applicable with respect to taxable years beginning after December 31, 1942. A provision having the effect of the amendment made by subsection (c) shall be deemed to be included in the revenue laws respectively applicable to taxable years beginning after December 31, 1931. (e) TERMINATION OF PERCENTAGE DEPLETION FOR CERTAIN MIN- ERALS. - The amendments made by subsections (a) and (b) (except as they relate to potash) antheh amendments made to section 114 of the 26 s8.C., BSpp. Internal Revenue Code by section 145 of the Revenue Act of 1942 (pro- m, 14. viding percentage depletion for fluorspar, ball and sagger clay, and Ant 44; aups rock asphalt), shall not apply with respect to any taxable year begin- 45 58 STAT.]
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