|Posted:||June 27, 2017 11:36 AM|
|From:||Representative James R. Santora and Rep. Stephen Barrar, Rep. Nick Miccarelli, Rep. Alexander T. Charlton, Rep. Christopher B. Quinn|
|To:||All House members|
|Subject:||Shale Legislation for Variable Rate|
In the near future, I will introduce legislation to create a natural gas severance tax on unconventional operations in Pennsylvania. Although our Impact fee has proven effective, as we have witnessed unprecedented growth in this industry, becoming the second largest producer of natural gas in the nation, the time has arrived to levy a fair and competitive tax that will provide important new revenues for the Commonwealth’s General Fund.
My legislation creates a variable rate for this new tax depending upon the average Pennsylvania hub price for the prior calendar year:
$0 and $2.50, 3%
$2.51 and $3 per unit, 4%
More than $3, 5%
Finally, this legislation maintains our important impact fee so that we can continue to provide the important local shares from this industry. However, my initiative allows producers a dollar for dollar credit for impact fee payments against their tax liabilities so that we are careful not to over burden our important job creators.
Please join me in co-sponsoring this legislation.
Introduced as HB1625