Gov. Wolf again pitches plan for taxing Marcellus gas drillers

I'm not a big fan of the Gov. but he got dealt a bad hand on this issue to begin with.

I don't know how PA came up with the convoluted local impact fee. They ignored every taxation example that other states used and acted like drilling was historically a highly novel concept in this area.

I did a rough crunching of the production numbers in the article and at current rates a 5% severance tax will bring in about 325 million a year. There is no indication if the local impact fee will be continued.

Texas charges a 7.5% severance tax at production price and Louisiana charges a flat rate of 9.8 cents on 1000 cubic feet produced.

Table 7.15 STATE SEVERANCE TAXES: 2017 - CSG Knowledge Center

knowledgecenter.csg.org/kc/system/files/7.15.2017.pdf

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