Impact Fee

Marie Cusick / StateImpact Pennslvania

State House lawmakers have moved a bill onto the floor calling for a severance tax on natural gas drilling.

It's a big step for Democrats and moderate Republicans, who have pushed the tax for years. But there's a good chance the measure will languish without a vote for the foreseeable future.

It would create a tax on the volume of gas taken from the ground, on top of an existing fee for new wells drilled.

Its sponsor, moderate Bucks County Representative Gene DiGirolamo, estimated annual revenue between $200 million and $250 million, depending on gas prices.

AP Photo/Keith Srakocic

State House Democrats and a handful of Republicans are trying to figure out the best way to bring a natural gas severance tax up for a vote.

The group briefly tried to bring a bill to the floor Tuesday, but had to drop the effort because they were short on support.

The version of the severance tax under consideration has been sitting in the GOP-controlled House Environmental Resources and Energy Committee since January.

The panel's leaders haven’t seemed inclined to act on it.

Marie Cusick / StateImpact Pennslvania

The fight over how to fund Pennsylvania’s overdue budget is boiling down to just a few points of contention -- including whether to impose a new tax on natural gas drillers.

House Panel Rebrands Marcellus 'Impact Fee,' Now Calling It 'Severance Tax'

Sep 11, 2017
Matt Rourke / AP

What’s in a name?

A lot, apparently, when it comes to Pennsylvania’s natural gas industry.

Jon Dawson / Flickr

With Pennsylvania natural gas production slowing in the last year and a half, money generated by the state’s Act 13 impact fee in 2015 fell by nearly 20 percent compared to the year before. That drop means most counties and municipalities hosting the gas wells will see smaller checks when they are sent out this month than they did last year.

Greene County Commission chair Blair Zimmerman said when he saw that the county would be getting $3.9 million this year compared to $4.5 million last year, he had to pick himself up off the floor, but for the reason one might think.

Joe Ulrich / WITF

 

AP Photo/Keith Srakocic, File

Gov. Tom Wolf argued last week that taxing Pennsylvania’s booming natural gas industry could help compensate for an anticipated $1 billion structural budget deficit in 2016.

His budget includes a state severance tax of 5 percent on extractions based on the value of gas at the well head and a charge of 4.7 cents per thousand cubic feet extracted. The commonwealth produced 3.23 trillion cubic feet in 2013.

AP Photo/Keith Srakocic, File

When Gov. Tom Wolf was campaigning, he said if elected he would place a severance tax on Marcellus shale gas in the commonwealth, and now he’s moving forward on a plan to do just that. The County Commissioners Association of Pennsylvania, however, doesn’t agree with some changes.