Real Property Taxation of Oil, Gas, and Mineral Interests in Pennsylvania

Real Property Taxation of Oil, Gas, and Mineral Interests in Pennsylvania

Since 2002, oil and gas interests have not been subject to real estate taxes based upon the Pennsylvania Supreme Court's interpretation of state assessment laws as excluding oil and gas reserves. See Independent Oil & Gas Association v. Board of Assessment Appeals of Fayette County, 527 Pa. 240, 814 A.2d 180 (2002) (click for a free PDF of the opinion). The recent development of the Marcellus Shale has renewed interest in taxing these interests. House Bill 10 of 2009 provides that rights held pursuant to a lease or other agreement to extract, remove or recover gas, oil or coal bed methane shall be subject to taxation as real estate and assessed and taxed separately from the surface property in the name of the holder of the rights.  Below is a collection of resources regarding this issue that practitioners and lay people alike may find helpful.

 

H.B. 10

Real Property Taxation of the Marcellus Shale and Other Mineral Interests in Pennsylvania, by K&L Gates

Testimony of the Independent Oil and Gas Association of Pennsylvania And Pennsylvania Oil and Gas Association On HB 10 Before the Pennsylvania House Finance Committee

Testimony By The Pennsylvania State Association Of Township Supervisors Before The House Finance Committee HB 10 (PN 904)

Testimony by the Pennsylvania School Boards Association

County Commissioners Association of Pennsylvania: OIL AND GAS IMPACTS AND THE NEED FOR LOCAL REVENUE HOUSE FINANCE COMMITTEE

League of Women Voters of Indiana County: Taxing Natural Gas Extraction from Marcellus Shale