In This Issue:

- Recent PA Sales Tax Guidance Concerning Natural Gas and Other Mining Activities

- Focus on Pennsylvania Corporate Taxes

- Application and Sale of Restricted Tax Credits

- Machinery and Equipment Exclusion From Real Property Taxation

- Excerpt from Recent PA Sales Tax Guidance Concerning Natural Gas and Other Mining Activities:

With all of the natural gas mining activity in Pennsylvania, the Department of Revenue has issued various guidance on what machinery, equipment and supplies falls within the "mining" exemption under Pennsylvania's sales and use tax. Over the last few years, the Department has issued Sales and Use Tax Bulletin 2012-01 concerning mining site preparation activities and published other information concerning natural gas mining in a question and answer format on its website. We previously summarized this guidance in our July 2012 newsletter, available at www.mwn.com/pubs/xprPubSearch.aspx?xpST=PubSearch. Most recently, the Department issued Sales and Use Tax Information Notice 2014-02 (9/22/2014), which is available on the Department's website at www.revenue.state.pa.us. In addition to compiling some of the guidance previously issued, Notice 2014-02 addresses various additional natural gas mining topics. Following are a few of the new examples the Department has given as either taxable activities or exempt mining activities.

Exploration activities qualifying as mining -

Mining, as defined in the Department's regulation, includes certain exploration activities. The Department sets forth the following examples of exempt exploration property and services: seismic exploration services; exploratory well drilling services; seismic imaging services; and seismic data.