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

Updated: May 20, 2011

In a new report, PBPC compares details of the four most prominent plans to assess a drilling tax or fee on natural gas production in Pennsylvania. The report examines legislation sponsored by Rep. Greg Vitali, Sens. John Yudichak and Ted Erickson, Rep. Kate Harper and Senate President Pro Tempore Joe Scarnati.

May 3, 2011

A new analysis from the Department of Revenue makes an apples to oranges comparison of the taxes paid by companies engaged in natural gas drilling. PBPC issues a statement on the analysis.

April 28, 2011

Advocates for enacting a responsible natural gas drilling tax in Pennsylvania raised serious concerns about the proposed local impact fee on Marcellus Shale drillers released today by Senate President Pro Tempore Joe Scarnati.

April 27, 2011

Natural gas drillers claim they have paid hundreds of millions of dollars in Pennsylvania taxes, but data from the state Department of Revenue tell a different story, according to a report from the Pennsylvania Budget and Policy Center.

Updated: April 27, 2011

Natural gas drillers claim they have paid hundreds of millions of dollars in Pennsylvania taxes, but data from the state Department of Revenue tell a different story. In tax year 2008, the oil and gas industry paid $38.8 million in Pennsylvania state business taxes.

April 11, 2011

In 2010, West Virginia, Texas and Arkansas, all of which impose a drilling tax, led the nation in new gas wells, while Pennsylvania, without a drilling tax, came in sixth. These facts contrast with recent statements made by Acting Revenue Secretary Dan Meuser before the Pennsylvania House Appropriations Committee.

October 12, 2010

The compromise severance tax plan would generate 40% less revenue than the Governor's original proposal, but Senate leaders have rejected it. PBPC has a comparison of the revenue generated from the various severance tax plans out there.

October 12, 2010

The Pennsylvania Budget and Policy Center has put together a table comparing the details of two plans to enact a severance tax on natural gas in the Marcellus Shale - one approved by the state House of Representatives and the other endorsed by the state Senate Republicans.

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