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House Co-Sponsorship Memoranda
House of Representatives
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | February 9, 2015 01:23 PM |
|---|---|
| From: | Representative Tina M. Davis |
| To: | All House members |
| Subject: | Legislation Providing for a Severance Tax on the Production of Natural Gas |
| In the near future, I will be introducing legislation that amends Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes to provide for a severance tax on the production of natural gas that would provide much needed revenue for both the General Fund and nine vitally important education programs. This legislation would levy a severance tax that, in addition to the already existing Act 13 impact fee, has an effective rate of 8 percent. My approach takes into account both the price of gas and the volume of the gas severed. By using the value and volume approach, the effective rate is not affected by the short-term volatility of the market and would provide a steady stream of money to the Commonwealth. The money generated from my severance tax would be split equally between the General Fund and nine critically important educational areas, including early childhood education and basic education funding. My legislation does not change the Act 13 impact fee or its distribution. The Marcellus Shale industry continues to play a significant role in the economic recovery taking place throughout Pennsylvania. I believe that all Pennsylvania taxpayers should benefit from the extraction of our Commonwealth’s abundant natural resource and a severance tax with an effective rate of 8 percent, that is divided evenly between the General Fund and education funding, would ensure that this occurs. |