OUR THOUGHTS ON:

Oil and Gas Taxation Issues Addressed by Pennsylvania

State and Local Tax

By Cathleen Condrac

The expanding oil and gas industry has given rise to multiple questions regarding the treatment of corporation tax, pass-through business tax, sales tax, employer withholding tax, etc. Recognizing this, the Pennsylvania Department of Revenue (Department) has updated its website to address some frequently asked questions regarding oil and gas taxation. To access these questions, simply go to the Department's Customer Support webpage, scroll down to the Featured Support Category for Oil and Gas Taxation Issues and select the applicable tax. The Department currently has listed several questions that include, but are not limited to, the following: 

  • How does Pennsylvania treat intangible drilling costs incurred by an individual taxpayer through an investment in a PA oil and gas partnership? 
  • Can I deduct percentage depletion from royalties I receive? 
  • Does natural gas drilling equipment qualify for a sales tax exclusion? 
  • How does a partnership or PA S-Corporation deduct depletion? 
  • Can I deduct any expenses from my gas lease? 

Please be cautioned that the Department's guidance in responding to each of these questions may not necessarily be binding upon audit or supported by current tax law.

Should you have any questions regarding oil and gas taxation issues, contact the State and Local Tax professionals at Schneider Downs.

© 2012 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.

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The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

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.

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