|Posted:||July 30, 2014 03:17 PM|
|From:||Senator Robert M. Tomlinson|
|To:||All Senate members|
|Subject:||Co-Sponsorship: TOMLINSON - Marcellus Shale Severance Tax|
Please join me in sponsoring this important piece of legislation. This legislation will levy a severance tax on natural gas producers in the Commonwealth. Pennsylvania remains the largest natural gas producing state in the nation that does not impose a severance tax on natural gas producers.
Specifically, this legislation will impose a natural gas severance tax on the gross value of the units of natural gas severed at the wellhead. The tax rates will be as follows: For the remainder of Fiscal Year 2014-2015: 1.5%, Fiscal Year 2015-2016: 3%, and Fiscal Year 2016-2017 and each fiscal year thereafter: 5%.
The impact fee that was imposed by Act 13 of 2012 will not be effected by the passage of this legislation.
The revenue generated from the severance tax will be deposited into a restricted receipts account in the General Fund. The legislation allows for the securitization of these funds. These funds shall be appropriated solely to offset the unfunded liability of the State Employees’ Retirement System and the Public School Employees’ Retirement System.
Introduced as SB1439