The Pennsylvania Department of Revenue’s Office of Chief Counsel issued Information Notice Sales and Use Tax 2014-02 Natural Gas Mining (“Notice”) on September 22, 2014.
The Notice provides those in the natural gas mining industry guidance by applying the law and specific mining regulations, relevant to the natural gas industry.
In addition to listing natural gas mining activities that fall within the exemption, the Notice lists specific items that are exempt and/or taxable in a number of categories, including: exploration, site preparation and pre-production construction, extraction and production, transport, vehicles and special mobile vehicles, gas storage, distribution, research, and services.
Those in the natural gas industry should find this guidance helpful in determining the taxability of purchases relative to mining operations.
The Notice can be found on the Department’s webpage.
If you have any questions regarding the Notice or its application to your business, contact your state and local tax professional.
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