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

October 6, 2010

The gas industry is waging a fierce fight to block a severance tax in Pennsylvania. PBPC, armed with almost two years of research on severance taxes and the potential impacts of drilling in the Marcellus Shale, has a fact check on claims made by the industry.

August 30, 2010

As Pennsylvania lawmakers debate the contours of a severance tax on natural gas extracted from the Marcellus Shale formation, PBPC has put forth a series of recommendations, including assessing a reasonable tax rate, limiting loopholes and restoring local government's authority to assess property taxes on oil and gas interests.

June 24, 2010

If the Pennsylvania General Assembly listens to the natural gas industry, two-thirds of the gas extracted from a typical Marcellus Shale well will be exempted from a state severance tax, PBPC warned in a new report.

June 24, 2010

If the Pennsylvania General Assembly listens to the natural gas industry, two-thirds of the gas extracted from a typical Marcellus Shale well will be exempted from a state severance tax, a Pennsylvania think tank warned today.

June 3, 2010

By not having a natural gas severance tax, Pennsylvania has lost more than $54 million since last October that could have funded vital state services including education and health care, as well as drilling-related environmental and local costs.

May 11, 2010

During the week of May 24, the House is expected to vote on a legislative package that would end special interest tax breaks in order to preserve critical public services like education and health care.

March 12, 2010

PBPC released the first in a series of policy briefs this week on the proposed 2010-11 state budget. In the first edition of "Budget Points," we take a look at the proposal to create a Stimulus Transition Reserve Fund.

October 2, 2009

A gas industry-financed study overplays the positive impacts of increased natural gas production, while minimizing the negative. PBPC analyzes the study's claims and provides a reality check.

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