Marcellus Shale Tax Policy

Issue Spotlight: Pennsylvania's Natural Gas Impact Fee

The Effective Rates of Natural Gas Severance Taxes in Texas and West Virginia Clearly Outperform PA's Impact FeeIn 2012, Pennsylvania enacted an “impact fee” on natural gas wells drilled into Pennsylvania’s Marcellus Shale that generates a relatively small amount of revenue from the expanding gas industry. PBPC estimates that, using a “moderate” production scenario, Pennsylvania's impact fee will bring in less revenue than a severance tax comparable to that of Texas or West Virginia. As production increases over time, the gap grows larger between the revenue generated at the West Virginia or Texas tax rates and from Pennsylvania’s impact fee.

Latest Report: Gas Production Booms, Drillers’ Corporate Tax Payments Plummet

Act 13 Impact Fee: Falling Short of Severance Tax

Shale Case Studies: A Look at Shale Drilling’s Mixed Legacy

Shale Impact: Learn More About Marcellus Shale and its Impact on the Economy and Services

Responsible Growth: How a Severance Tax can Help Protect Pennsylvania

Browse Marcellus Shale Tax Publications Below

(HARRISBURG, PA) June 27, 2015 – Mark Price, research director of the Pennsylvania Budget and Policy Center,* issued the following statement in response to House Bill 1192, the General Appropriations bill, which the Pennsylvania House of Representatives is debating today:

“This budget is essentially Gov. Corbett’s fifth budget. It resurrects a failed, cuts-only approach to the budget that has been discredited by Pennsylvania’s experience over the last four years, in the vain hope that by doing the same thing again we will produce a different outcome. Pennsylvania’s recent poor economic performance can be directly attributed to this failed approach.

Instead, I encourage members of the General Assembly to look at the latest polls to see what’s important to Pennsylvania voters. Voters want to see restoration of education funding, property tax relief and a tax on drilling.

Gov. Wolf has proposed a severance tax on the extraction of natural gas in Pennsylvania to provide funding for public schools. Lawmakers in both parties have introduced severance tax bills every year since 2009, and every year the gas drillers have successfully fought the tax, spending $46.8 million on lobbying since 2007.  Much of the industry’s lobbying money has gone into manufacturing a narrative, built on a foundation of myths, about the economic benefits of drilling and the fragility of the industry.

One critical value that should guide tax policy in our view is “revenue adequacy” – having enough revenue to invest in essential public goods, starting with education, and in services critical to quality of life for middle‐ and low‐income families.

 

(HARRISBURG, Pa.) June 10, 2015 – A diverse array of 41 major organizations, which serve or represent millions of Pennsylvanians, today called on state lawmakers to enact a fair and reasonable tax on the extraction of natural gas and use the revenue to reinvest in Pennsylvania’s public schools, promote economic development and clean energy, and strengthen oversight of the natural gas industry.

(HARRISBURG, PA)With state budget negotiations heating up in Harrisburg, for the first time new information-packed fact sheets are being released by the Pennsylvania Budget and Policy Center that reveal the real impact of Gov. Wolf's budget plan on taxpayers, homeowners, schoolchildren, minimum wage workers and other Pennsylvanians who would be affected by his proposals.

"Pennsylvania is now the second largest natural gas producer in the country," testified Research Director Michael Wood before a Senate Joint Committee,"and it is time to end the excuses and enact a real severance tax."  

 

We have BIG news that will make Keystone Research Center’s Annual Awards Reception on June 1 at the Hilton Harrisburg especially exciting and exclusive this year. Our guest speaker will be Gov. Tom Wolf! He will begin speaking promptly at 5:30 p.m. You won’t want to miss what the governor has to say as the legislature returns to session and budget negotiations reach fever pitch.

Monthly archive