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Senate of Pennsylvania
Session of 2013 - 2014 Regular Session


Posted: March 31, 2014 11:42 AM
From: Senator Vincent J. Hughes and Sen. John T. Yudichak, Sen. Judith L. Schwank, Sen. James R. Brewster, Sen. Christine M. Tartaglione
To: All Senate members
Subject: Marcellus severance tax
In the near future, we will introduce SB 1333, legislation that would impose a 5% severance tax on Marcellus shale drilling. The tax would be in addition to the current impact fee imposed on drillers under Act 13 of 2012.

Currently Pennsylvania is the only major gas producing state that does not tax the extraction of shale gas. Our legislation would remedy that by imposing a fair and reasonable severance tax that would put Pennsylvania in line with other states that have natural gas drilling. The proposal balances the fiscal needs of the Commonwealth with the desires of the natural gas industry to operate in a business-friendly environment.

In FY 14-15, revenues from the severance tax will be invested in public education and proven economic development and environmental protection programs. In future years, all revenue growth will be used solely for funding public education.

For FY 14-15, this tax would also provide short-term budget relief in a number of ways, including alleviating the need to end the moratorium of drilling on state lands as proposed by Governor Corbett.

If you have any questions regarding this legislation please contact John Raymond in Senator Hughes’ office at 7-7112 or jraymond@pasenate.com or Richard Fox in Senator Yudichak’s office at 3-1714 or rfox@pasenate.com.

Introduced as SB1333