Governor Wolf’s 2018 Severance Tax Proposal Could Bring in $1.7 Billion of Revenue Over the Next Five Years

Diana Polson |

Governor Tom Wolf proposed a severance tax as a part of his 2018-19 Executive Budget. This policy brief presents the rationale for Pennsylvania to establish a severance tax (taxation based on the amount of gas a company extracts) instead of merely relying on the current impact fee model which is based on the number of years since a well was drilled and the price of natural gas. A severance tax would provide more than a billion dollars to PA over the next five years, while the impact fee fluctuates within a range that tops off at less than $230 million.