OUR THOUGHTS ON:

Pennsylvania Oil and Gas Tax Update

Energy & Resources

By Jeffrey Wlahofsky

On May 13, 2013, members of the Marcellus Shale Coalition (MSC), the Pennsylvania Oil and Gas Association (PIOGA), the Pennsylvania Institute of Certified Public Accountants (PICPA) and the American Petroleum Institute (PA-API) met with the Pennsylvania Department of Revenue (Department). The purpose of the three and a half hour meeting was to discuss various proposed tax information releases and related guidance that the Department is planning on issuing for the oil and gas industry. The areas of concentration included:

  1. Gross premiums tax on unauthorized insurance carriers in Pennsylvania supporting the industry
  2. Independent contractors vs. employees in all aspects of the industry
  3. The issuing of Forms 1099 relating to contractors when providing services in Pennsylvania
  4. Sales and use tax guidance with respect to:
    • Site preparation
    • Pre-production
    • Exploration
    • Extraction and production
    • Vehicles and mobile equipment
    • Gas storage
    • Other items
  5. Intangible drilling costs for Pennsylvania personal income tax purposes

The Department was receptive to the various comments from the meeting’s attendees and understood their concerns pertaining to informational releases.  The Department’s initiative is to update the information release based on the meeting along with additional information requested.

If you are interested in any aspect of the proposed information release, please contact me at 412-697-5245 or jwlahofsky@schneiderdowns.com.

© 2013 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

comments