The Marcellus Shale Coalition released this easy to understand infographic that shows a comprehensive breakdown of what PA voters want. If the severance tax were to mean a decrease in local job opportunity or negative effects for the oil and gas industry voter support for the severance starts to waiver. Most importantly it is clear that Pennsylvania voters are in favor of more jobs over more taxes.
Over the last week we have talked a lot about impact fees verse the proposed severance tax and what a severance tax could mean for Pennsylvania. As of right now the proposed severance tax would be a 5 percent extraction tax on all gas extracted from a well in Pennsylvania. A tax of this nature has potential to slow oil and gas operations in Pennsylvania, a state that, compared to other shale fields is already an expensive place for oil and gas operations. The impact fees, to date, have generated $630 million in revenue that was directly returned to counties with the most oil and gas industry operations. Oil and gas companies, in addition, to the impact fees have paid around $2 billion in corporate income taxes which all go into the state tax revenue.
Ultimately the decision will come down to Harrisburg where it could come to a vote in the Pennsylvania state senate as soon as July. With the race for the Governorship heating up the Pennsylvania voters are in an exceptional powerful position. The severance tax is an important issue for the governor election. As for the upcoming vote it is important to reach out to your elected officials about any concerns or questions you may have about the severance tax or any other proposed legislation.