|Posted:||January 17, 2017 09:58 AM|
|From:||Senator Robert M. Tomlinson|
|To:||All Senate members|
|Subject:||Marcellus Shale Severance Tax|
|Please join me in sponsoring legislation to levy a severance tax on natural gas producers in the Commonwealth. Pennsylvania remains the largest natural gas producing state in the nation that does not impose a severance tax on natural gas producers.
Specifically, this legislation will impose a 5% natural gas severance tax on the gross value of the units of natural gas severed at the wellhead. The impact fee that was imposed by Act 13 of 2012 will not be effected by the passage of this legislation.
The revenue generated from the severance tax will be deposited into a restricted receipts account in the General Fund. The legislation allows for the securitization of these funds. These funds shall be appropriated solely to offset the unfunded liability of the State Employees’ Retirement System and the Public School Employees’ Retirement System.
This legislation was cosponsored last session by Senators Greenleaf, Pileggi, Mensch, Leach, Rafferty, Hughes, McIlhinney and Sabatina as Senate Bill 719.
Introduced as SB566