Representatives Pielli & Khan Introduce Natural Gas Severance Tax

Pennsylvania is one of the nation’s largest natural gas producers but is one of the few states that still does not have a natural gas severance tax. Reps Tarik Khan and Chris Pielli introduced new legislation to make sure our communities get a fair return when gas is drilled in our Commonwealth.

“The Marcellus Shale is our natural resource. As such, we should not only suffer its impacts but share in its benefits with a fair severance shale tax to benefit our schools, our seniors, our streets and for the service and support that every Pennsylvanian truly deserves,” Pielli said. “It’s long past time that these multi-billion-dollar companies pay their fair share. I urge my colleagues to support this important legislation aimed at ensuring that all Pennsylvania residents benefit from the access we provide to our land and other natural resources.”

The proposal would create a severance tax on natural gas production, similar to what many other energy-producing states already use. It is important to note the existing impact fee would remain in place so local governments in drilling areas will continue receiving direct support, while producers receive credits to prevent double taxation.

Revenue from a severance tax will fund priorities that matter to Pennsylvanians, including public schools, infrastructure, and essential community services while ensuring that large gas companies contribute their fair share.

Read all about it here:

https://www.pahouse.com/Tarik/InTheNews/NewsRelease/?id=141354