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

June 22, 2009

The largest share of severance tax revenue in most states goes to the general fund. Some states share a portion with local governments or set it aside for specific purposes, such as conservation projects or a permanent fund.

April 28, 2009

Watch video from a press conference where PBPC rolled out is severance tax report.

April 28, 2009

A well-structured severance tax on natural gas production will protect Pennsylvania taxpayers from shouldering the public costs that come with increased drilling, according to a report released today by the Pennsylvania Budget and Policy Center.

April 3, 2009

The Pennsylvania House Appropriations Committee's Subcommittee on Tax Policy recently examined the plan to introduce a severance tax on natural gas drilling in Pennsylvania.

April 3, 2009

Read Michael Wood's testimony on the proposed natural gas severance tax before the Subcommittee on Fiscal Policy of the Pennsylvania House Appropriations Committee.

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