The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 6806 June 28, 1994 TAXATION: Taxation of personal property leased by a mining company and used in the production of low grade iron ore Personal property leased by a mining company and used in the production of low grade iron ore is subject to the specific ore tax imposed by 1951 PA 77. Gary L. Walker Prosecuting Attorney Marquette County County Building Marquette, Michigan 49855 You have asked whether personal property leased by a mining company and used in the production of low grade iron ore is subject to the specific ore tax or the general property tax. Section 1 of the General Property Tax Act, 1893 PA 206, MCL 211.1; MSA 7.1, provides: That all property, real and personal, within the jurisdiction of this state, not expressly exempted, shall be subject to taxation. In 1951 PA 77, MCL 211.621 et seq; MSA 13.157(1) et seq, the Legislature has provided for the specific taxation of low grade iron ore, low grade iron ore mining property and rights to minerals and land containing low grade iron ores. Section 4(3)(c) of that statute provides that the tax provided in that act is "in lieu of any state or local ad valorem tax on . . . low grade iron ore mining property." Section 1(b) of 1951 PA 77 defines "[l]ow grade iron ore mining property" as: [M]ineral bearing land from which low grade iron ore is mined, and includes the beneficiation or treatment plants, and other necessary land, buildings, facilities, equipment, tools, and supplies used in connection with the mining, transportation, and beneficiation or treatment of the low grade ire ore in producing merchantable iron ore pellets or other concentrated or agglomerated products. [ Emphasis added.] When the language of a statute is plain and unambiguous, no interpretation is necessary. Dussia v Monroe County Employees Retirement System, 386 Mich 244, 248; 191 NW2d 307 (1971). Here, the Legislature has plainly included items of tangible personal property such as "equipment, tools and supplies" used in the production of low grade iron ore within the definition of "[l]ow grade iron ore mining property" that is exempt from the property tax. The exemption is not based upon ownership of the personal property by the entity engaged in producing low grade iron ore. See OAG, 1983-1984, No 6204, p 237 (February 8, 1984), which concluded that a property tax exemption for property used in agricultural operations applied to property leased to and used by a farmer. See also Wm. Mueller & Sons v Dep't of Treasury, 189 Mich App 570; 473 NW2d 783 (1991), with respect to the exemption from use tax of certain tangible personal property utilized in horticultural or agricultural production. It is my opinion, therefore, that personal property leased by a mining company and used in the production of low grade iron ore is subject to the specific ore tax imposed by 1951 PA 77, supra. Frank J. Kelley Attorney General