Contributed by Marvin A. Kirsner
GT Tax Practice, Boca Raton
The Pennsylvania Department of Revenue has ruled that equipment purchased by a company that provides fracturing and acidizing services in connection with natural gas wells is exempt from the Commonwealth’s sales and use tax under the mining exemption. The ruling also concludes that materials used in fracturing services (such as gases, sand, and cement) are also exempt from sales and use tax under the mining exemption. For the full text of SUT-10-003 click here.