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Pennsylvania lawmakers propose natural gas extraction tax

Friday, February 6, 2015 by

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Pennsylvania lawmakers have proposed a 3.2 percent extraction tax on natural gas, adding to the state’s existing impact fee on shale drillers, according to Lancaster Online, two Republican and two Democratic state representatives created the proposal.

Pennsylvania is the only big gas-producing state that charges impact fees. Many other states have a percentage tax on gas that’s extracted from shale plays.
Proceeds of the extraction tax will benefit education, human services and environmental programs in each of the state’s 67 counties. Many Pennsylvanians — 62 percent — support the tax, but the energy industry doesn’t, saying the tax could hurt production and investment in the shale play.

The existing impact fee and the proposed 3.2 percent drilling tax combined would add about 5 percent in value to natural gas sold in the state.

Related: Ohio Governor proposes increased fracking tax

Via: Lancaster Online > Bipartisan group of lawmakers want 3.2 percent natural-gas tax

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