Anyone know anything about the state of PA making the gas co. take a small deduction out of the gross amount on a no deduction lease I got my first check and they took out aprox 4.5 % eqt told my brother the state make them do it if you live out side of PA . If it is a income tax why is it not under the tax column per the stubb its in owner deductions column
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Jeff, Call the State tax dept in PA and ask if there is a small tax fee for not living in the State. There has been a few companies out there taking fees for royalties with mineral owners signed in a cost fee lease.
This wasn't terrible to find on the PA Dept. of Revenue site:
https://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTax...
If that doesn't answer it, the devil probably lies in the details of the "no deduction" lease.
Ohio has a section in their tax forms that gives an Ohio Taxpayer credit for taxes paid to other States or local governments of another State, which is only fair, since taxes paid are not income.
Checking to ensure the tax is legally due is the right thing to do. O&G companies have been known to have issues related ethics, even though they have a huge ethics procedure to protect their company from unethical employees. The executives justify theft from Landowners but expect high standards of honesty from their employees. The saying: "Do as I say, not as I do" comes to mind.
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