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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | May 19, 2023 02:19 PM |
|---|---|
| From: | Representative Mandy Steele |
| To: | All House members |
| Subject: | Severance Tax Audit |
| Despite Pennsylvania being the second largest producer of natural gas, we do not impose a severance tax, which is based on the amount of natural gas extracted from wells. Rather, Pennsylvania imposes an impact fee, established through Act 13 of 2012 on February 14, 2012. An impact fee is collected from natural gas and oil drilling in the state and is based on the number of new wells drilled. Pennsylvania now hosts about 40,000 active gas wells and has approximately 4,000 new wells drilled each year. Not only do oil and gas companies not pay any local property taxes and very little in state taxes, but the impact fee also allows the oil and gas companies to pay significantly less than if a severance tax was imposed. Further, no other state uses the per-well fee method in impact fees. It is time we know exactly how much money our state is losing by not imposing a severance tax. That is why I plan to introduce a resolution to direct the Legislative Budget and Finance Committee to conduct an audit to determine the amount of revenue lost since the enactment of the impact fee. The audit will also look at and compare the severance tax imposed in other states and the amount of natural gas extracted from Pennsylvania since 2012. Please consider co-sponsoring this resolution and join me in an effort to obtain the facts about the real cost of not having a severance tax in Pennsylvania. |
Introduced as HR131
Memo Updated: May 19, 2023 02:20 PM