Skip to main content
  1. News
  2. Business & Finance
  3. Industry

A different fracking tax in Pennsylvania could have raised millions more

See also

Governor Tom Corbett, in his budget address on February 4th, announced that Pennsylvania is now the second largest producer of natural gas. In fact, the industry is the linchpin for the Governor's economic success plan for the state.

The impact fee, which is charge per fracking well drilled, was enacted by the legislation from Act 13 in 2012, and has produced $200 million in collected fees, so far. It is expected to raise about $600 million over three years, and the money collected up to this point, will be distributed to municipalities and counties within the next two months.

Research of the natural gas industry reveals that if PA would have charged a severance fee, which is tax on the amount of natural gas extracted, Pennsylvanians would have benefited far greater.

The state's 4,900 fracking wells, in 2013, extracted 3.1 trillion cubic feet of natural gas. A 5% tax, similar to what West Virginia charges, would have yielded $425 million. This is doubled what Pennsylvania has collected so far, and could amount to billions for years to come..

Opponents of the impact fee, use this as ammunition that Governor Corbett's policies has short-changed the state. While the backers of the impact fee argue that it allows a company to operate with out being overburdened.

Advertisement

News

  • Baseball Hall of Fame
    The Baseball Hall of Fame in Cooperstown welcomes six new inductees
    Video
    Video
  • 2012 do-over
    If we were to re-do the 2012 election, a new poll suggests Romney would win
    Politics
  • Boko Haram
    Boko Haram kidnaps the wife of the vice prime minister of Cameroon
    World News
  • Ceasefire breaks
    Israel's Benjamin Netanyahu claims Hamas broke another brief ceasefire
    Gaza
  • Close call with CME
    Scientists tell how Earth survived a giant solar flare back in 2012
    Space
  • Comic-Con
    What's going on at Comic-Con? Get all the latest updates here
    Comic-Con

Related Videos:

  • Economic Forum
    <div class="video-info" data-id="518179699" data-param-name="playList" data-provider="5min" data-url="http://pshared.5min.com/Scripts/PlayerSeed.js?sid=1304&width=480&height=401&playList=518179699&autoStart=true"></div>
  • Hand Injury
    <div class="video-info" data-id="518054308" data-param-name="playList" data-provider="5min" data-url="http://pshared.5min.com/Scripts/PlayerSeed.js?sid=1304&width=480&height=401&playList=518054308&autoStart=true"></div>
  • Digital Asset Management
    <div class="video-info" data-id="518159046" data-param-name="playList" data-provider="5min" data-url="http://pshared.5min.com/Scripts/PlayerSeed.js?sid=1304&width=480&height=401&playList=518159046&autoStart=true"></div>