Taxing Unpatented Mining Claims, Fremont County sending out Real Property Notice of Valuations Options

[ASTROBLEME]

Just when I thought I had everything pretty much figured out with mining claim laws, Fremont County sends me a Real Property Notice of Valuation for my unpatented placer mining claims. After running the numbers and reading the fine print, county government was making a demand for several hundred dollars on each claim. No other county has demanded taxes on unpatented claims I hold on BLM lands. After doing a little research, I found this reference to taxing Colorado mining claims;

TITLE 39

I went to the Assessor's Office and complained about the high values and asked how they were determined along with an explanation of why adjacent claims were not being taxed. Well, now they are going to re-asses my claims and send me an updated valuation in a couple of weeks. Both the local BLM Field Office and the Mining Law Administration at the Colorado State BLM Office are looking into this matter as well, since they have never heard of it happening before.

Anyone else ever encounter this?

ASTROBLEME

[swizz]

I am not sure if they can legally tax unpatented mining claims within their county but I could be wrong of course. Their "Title 39" was written up recently? Can a 'County' just make up rules, tax rates and charges to claim owners... then legally enforce them? Do they have an auditor or new department they are financing now to enforce this "Title 39"?

Fremont County Title 39 states that $5K annual proceeds is the magic number to categorize a claim as what they have defined a "productive claim". They apparently intend to pursue (their definition of) "productive claim" owners for their fair share???? WTF... good luck (County Officials) finding a "productive claim" that is unpatented, turning $5K proceeds (there's that word again), and reporting real numbers (or reporting at all, lol). This reeks of greed by Fremont County and I'm not sure if they can legally impose such a thing, or if they are even capable. I can comprehend them applying property tax to legitimate businesses (with employees, payroll taxes, State and Fed income tax filings established, etc), homeowners, or active/operational mines which are PATENTED but this is a big stretch. What the hell kind of County is Fremont? Sounds greedy, unlawful, and rogue to me... possibly usurping or testing the Federal Mining Laws of 1872. I don't believe that unpatented location claims are legally subject to annual County property taxation.
Is this legal and within a County's rights to impose????

Here are some curious quotes from the Title which cannot make sense:

From Fremont County Title 39:
39-6-105. Producing mines defined.
All mines whose gross proceeds during the preceding calendar year have exceeded the amount of five thousand dollars shall be classified as producing mines, and all others shall be classified as nonproducing mines.

39-6-106. Valuation for assessment of producing mines
(6) This section shall apply to and affect only the valuation of producing mines pursuant to this article.

[swizz]

From Fremont County Title 39:
39-6-105. Producing mines defined.
All mines whose gross proceeds during the preceding calendar year have exceeded the amount of five thousand dollars shall be classified as producing mines, and all others shall be classified as nonproducing mines.

Please note something of importance stated (bold) in the above quote. What the hell is "gross proceeds"? Is this some new legal mining or business term I haven't heard of yet? I am assuming they mean "gross income" as pertaining to taxation value. Gross Income (or "proceeds" as they call it) is NOT PROFIT by any means, therefore not quantifiable as a monetary value factor. Freemont County may not redefine "gross proceeds" as "profit" (which translates to subsequent "worth" or "value") neither in the definitive NOR legal sense.
Any small business owner can tell you that "profit" (as in the $5K or more they are attempting to calculate and impose property value tax burden upon) cannot be determined based solely on "gross income".... "net income" is needed to legally quantify what is left over for "profit" and potential property valuation in regard to taxation. "Gross" income vs expenses, overhead, etc determines potential "net income" (value). There are other factors as well which quantify the legal definition of "profit". State and Federal taxation (for example) is based in terms of "net" income.... not "gross proceeds" (whatever the hell that is). Fremont County cannot legally redefine that "gross income" is pure profit thus being a measurement for value or worth as per their $5K qualification clause (quoted above). They define the $5K or more as "gross proceeds" and assumable (by their translation) profit or value... possibly thinking the term is a new property tax valuation loophole for them to benefit from and collect, who knows.
In other words... I may recover $6K total gross in minerals during an annual period on my individual location claim, but have spent $10K to get it. My actual "net income" as a result is minus $4K for the year... Fremont County Title 39 states that Fremont County will evaluate tax property value based solely on that $6K because it is the "gross proceeds" amount which they have defined as profit or a tool for property valuation. Fremont County is trying to base "profit and/or value" on "gross proceeds" if I understand this part of Title 39 correctly. That can't fly, I've never heard the term "gross proceeds" in relation to tax filing.... normally referred to as "gross income". Maybe the term "gross proceed" actually does exist for this purpose and I'm off base. "Gross" is never taxed by Fed and State... "net income" is taxed. Maybe Fremont County should make up another new term: "net proceeds"... frickin idiots.
In addition to apparently goin rogue (or just plain ignorance), Fremont County doesn't even know the elementary process of how "net profit" numbers are determined??? It appears Fremont County has not fully thought this out prior to attempting initiation, enactment, enforcement, and publication of Title 39.
If I am right - Fremont County needs to be challenged. If they enact upon the Title 39 they may be facing Class Action Lawsuits and paying damages. They are proceeding in a rogue, uneducated, and unlawful manner IMHO.