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Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20130&cosponId=13828
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House of Representatives
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted: December 20, 2013 01:06 PM
From: Representative Kevin Haggerty
To: All House members
Subject: Legislation Providing for a Severance Tax on the Extraction of Natural Gas to Fund Transportation Projects
 
In the near future, I plan to introduce legislation that would provide for a severance tax on the extraction of natural gas to fund transportation projects.

As a result of the passage of Act 13 of 2012, an impact fee is now assessed on unconventional natural gas wells in the Commonwealth. According to many experts, this fee structure has generated significantly less revenue than a reasonable severance tax would have produced over the same period of time. As noted by the Pennsylvania Budget and Policy Center, “Every year (since the passage of Act 13 of 2012), Pennsylvania is leaving hundreds of millions of dollars on the table that would be collected in other, more conservative states that use those funds to help pay for schools, infrastructure, and health care.”

The legislation that I will be introducing would address this issue by amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes to provide for a 5 percent tax on the gross value of each 1,000 cubic feet of natural gas severed, plus an additional 4.6 cents per 1,000 cubic feet of natural gas severed. The revenue from this tax would be directed to the Motor License Fund for improvements to Pennsylvania’s transportation system. My goal in introducing this piece of legislation is to lessen the burden of the recently passed bill that raises the gas tax on consumers 28 cents per gallon.

I hope you will join me in sponsoring this piece of legislation.

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Introduced as HB1947