Bartolotta’s Bill Helping PA Families Passes Senate

HARRISBURG – Hardworking Pennsylvanians may soon have the same tax benefits afforded to investors, thanks to the Senate passage of Sen. Camera Bartolotta’s (R-46) bill.

Senate Bill 654 would bring Pennsylvania law in line with Internal Revenue Service (IRS) tax laws relating to the depletion of wells and mines. It would allow long-time landowners to claim the same depletion rate on their royalties as those businesses that purchased mineral rights.

Investors who buy mineral rights have the appraised value of gas as the basis for the well depletion allowance provided in Pennsylvania while most landowners do not, as appraisals are cost prohibitive.

Because of this, the IRS and some states, including neighboring West Virginia and Ohio, allow a simple percentage depletion allowance that is accessible to everyone paying tax on 85% of royalties.

“I would like to thank my 88-year-old constituent who brought this important issue to my attention. Thanks to the retired public school teacher and farmer living in Washington County, this bill was written and received Senate support,” Bartolotta said. “Thanks to him, families will hopefully soon enjoy the same financial benefits investors already claim. He is a great example of what can be accomplished when people share their state-related concerns.”

Currently, Pennsylvania law does not provide this kind of depletion deduction. While a regulation adopted in 2006 appears to provide for a cost depletion method for mines, oil and gas wells, other natural deposits, and timber, the documents required by the regulation make it unworkable for most taxpayers who otherwise would be able to take the deduction.

Having received strong bipartisan support, Senate Bill 654 now moves to the House of Representatives for consideration.

Click here for Bartolotta’s remarks on the bill.


CONTACT: Katrina Hanna, 717-787-1463

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