i just read through the 28 page proposed bill. As I studied the bill it occurred to me that I could not locate a protection for royalty owners. The protection I am looking for is one which prohibits Oil & Gas Companies from passing the tax along as a deduction against the royalty owner. In essence, my view, is that if this were done it would be a “staked” or double taxation since we all ready must pay the 3.07% income tax on the royalties we receive.
If if I missed a line then I would enjoy being corrected.
What state is this?
I would guess that if this Bill passes in PA, the rights' owner will indeed pay their pro-rata share of any severance tax.
I'll have to check my original lease, but I believe there is a clause that states exactly that.