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Re: mineral rights question

2008/1/31 17:19
From Pretty much everywhere at some point, Thorndale today.
Posts: 2367
Offline ... ests-in-pennsylvania.aspx

I don't claim to be a lawyer, so I dunno. My personal take on this (and it could be wrong) is:

Minerals are taxed along with regular real estate taxes. They are taken into account during the assessment of a property, and rolled into the real estate taxes paid by the owner. Thus, if you have minerals below your land, and you are not the mineral rights owner, you're assessment is somewhat lower than if you were the mineral rights owner. Further, if you have and own the mineral rights, and put in equipment to extract it, that equipment is an improvement to the property and thus can be reflected in the assessment.

This is all well and good for traditional minerals like coal, limestone, etc. But the question arose to whether it fits for oil and gas. The PA Supreme Court said no. Oil and gas are not "land", they are liquid/gas and thus can move from property to property. They are not part of your property and not included in property assessments, nor would the equipment for extraction be included. This ruling led to a debate on whether to rewrite the law to include oil and gas, and I don't know where that stands.

That said, if the gas company leases land for oil and gas and makes a profit, that profit is indeed taxed as income. Likewise, if the property owner recieved money for the lease and/or royalties from the sale of oil and gas, that is also income and taxed as such.

Posted on: 2011/1/3 16:29

Re: mineral rights question

2010/1/2 14:53
From on elk creek fishing
Posts: 1
Ok, so..........I guess there will be no taxes on the gas. Up here NWPA after the 1980's gas drilling boom there was a lot of bankruptcies filed buy these companies.
With the new Gov saying no new taxes. We the little people are in for a smaller pocket books.
ADD>>> :)

Posted on: 2011/1/3 17:30

Re: mineral rights question

2008/1/31 17:19
From Pretty much everywhere at some point, Thorndale today.
Posts: 2367
I guess there will be no taxes on the gas.

Incorrect. Well, there may or may not be NEW taxes on the gas, that debate is still going. As it currently stands, gas sitting in the ground undisturbed is not taxed as real estate. That may or may not change. Extraction of said gas IS currently taxed for all parties that profit from it. This tax rate may stay the same or increase.

Posted on: 2011/1/3 18:28

Re: mineral rights question

2009/4/1 21:52
From Johnstown, PA
Posts: 5
Our "NEW GOV" in his ultimate wisdom chose not to invoke an extraction tax like every other state did , i even saw an interview of a gas company spokesperson , some gal , who was actually surprised and said it was already in their budget!!!!! We should dip his azz in frack water.

Posted on: 2011/1/4 8:59

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