|Posted:||December 16, 2014 02:23 PM|
|From:||Senator James R. Brewster|
|To:||All Senate members|
|Subject:||Extraction for Education|
|I will soon be introducing legislation that imposes a severance tax on the production of Natural Gas within the Commonwealth. My legislation will feature a 5% severance tax, and would tax the natural gas extracted at the well head itself.
This act will not do away with Act 13 of 2012’s Impact Fee. Rather, it will give the producer’s of natural gas the ability to receive credit for what they are already paying via the impact fee. Those producers would still pay a cumulative total of 5% in severance tax.
All new revenues generated by this tax will be placed in a fund called the “Extract for Education Fund” and all dollars will be spent in support of education. 100% of this funding will be used to help schools, taxpayers and children and not siphoned off for other purposes. This funding will supplement General Fund revenues for basic education based on the new funding formula that is being crafted by a bi-partisan commission.
My ‘Extract for Education’ proposal is simple, reasonable and credible because it uses the proceeds of an extraction tax to support education. Yet it also retains funds that are currently generated from impact fees for use by local and state government.
Introduced as SB395