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House of Representatives
Session of 2015 - 2016 Regular Session

MEMORANDUM

Posted:	December 17, 2014 09:34 AM
From:	Representative Kate Harper
To:	All House members
Subject:	Marcellus Shale Severance Tax Combines with the Shale Impact Fee

In the near future, I plan to introduce legislation imposing a severance tax on natural gas extraction in the commonwealth. As this industry continues to grow, this new source of revenue can provide important funding as we continue to face difficult economic conditions. In order to ensure that our local communities continue to benefit from impact fees, and that our statewide environmental programs continue to benefit as well, I have designed this bill to consolidate both approaches without making Pennsylvania uncompetitive with our Shale-industry neighboring States. More specifically, my legislation assesses a tax of 3.5% of the gross value of units severed at the wellhead. This tax is in conjunction with our current Unconventional Gas Well Fee and leaves it unchanged. Finally new revenues generated by this tax would go directly to reducing unfunded liabilities in our Public School Employees’ Retirement Fund.

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