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MARQUETTE -- A change in how mines are taxed could be coming to the U.P.

Governor Rick Snyder's administration is proposing a new severance tax. Lansing officials met with local legislators and mining officials in Marquette on Friday to discuss the proposal. The three percent tax rate is designed for precious metals operations that are expected to be developed here in the U.P., including the Kennecott Eagle nickel and copper mine.

The tax would replace four others under the current law.

"This is good for taxpayers because what happens is it will be collected locally, it stays in the community, and then the rural development fund will be able to invest in infrastructure needs, because we all use the same roads and rails, energy, broadband, talent, and so by doing that, hopefully we can survive the boom bust," said Keith Creagh, Director of the Department of Agriculture and Rural Development.

Creagh says they expect to meet with officials again in June.