Marcellus Minutes is a subscription-based newsletter sent to all subscribers registered through the Marcellus Minutes website that contains information on legislation including bill tracking, committee hearings and news from the Capitol in Harrisburg. Access to the website is free and provided to those directly involved and those with an interest in Pennsylvania’s oil and gas industry.

Pa. severance tax would be highest among natural gas states, report says

Gov. Tom Wolf’s proposed severance tax would take Pennsylvania from last place to first among major gas-producing states in taxing the extraction of natural gas, according to the Independent Fiscal Office.

In testimony before a Senate committee Monday, IFO Director Matthew Knittel said the effective tax rate after all state taxes are accounted for would be 7.3 percent. Neighboring states like Ohio and West Virginia levy taxes of 0.8 and 5 percent, respectively, while Texas’ taxes range from 3.1 to 3.5 percent.

“The (proposed) severance tax exceeds West Virginia by about 2 percent due to the tax on volume and the disallowance of deductions for post-production costs,” he said.

Read More

 Marcellus Minutes © 2015 | 4075 Linglestown Road, PMB 356 | Harrisburg, PA 17112 | Bigley and Blikle, LLC