Proposed severance tax worries Pennsylvania officials
Wednesday, April 1, 2015
Pittsburgh Tribune-Review reports that this year, $220 million is expected to be generated from impact fees, which is returned to the counties and municipalities where drilling is taking place. However, Pennsylvania Governor Tom Wolf proposed a 5 percent severance tax on the gas that drillers extract, which could affect the impact fees that have been in place since 2012.
In Westmoreland County, officials are concerned about the potential severance tax and its impacts on areas shale drilling is heavy. Money from impact fees has been used to improve bridges, build conservation programs, help operate 911 emergency dispatching services and to pay for human service programs.
Some officials believe that if the severance tax is approved, it will deter drillers from producing in the state. Others want to make sure that the counties and municipalities that are currently receiving funds from the impact fees will continue to do so.
Via: Pittsburgh Tribune-Review > Westmoreland officials fear loss of impact fees
Related:
- Pennsylvania Gov. Wolf’s severance tax meets opposition March 29, 2015
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Depending on the company, royalty payments can arrive monthly or quarterly.
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Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
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Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.