PRESS MEMO: Drillers Are Right – PA Needs Tax Rate on Gas Like Other States: It’s Time for a Severance Tax

Stephen Herzenberg |

When a group of bipartisan legislators became more vocal in their support of a severance tax on natural gas drillers during the 2017-18 budget process, the Marcellus Shale Coalition put on a full-court press. In a letter to Speaker Mike Turzai, the Marcellus Shale Coalition points to the effective tax rate (ETR) on production as a key indicator of whether Pennsylvania should enact a severance tax in addition to the per-well impact fee we already have. In this press memo, we fact check their claims and argue in favor of a severance tax in Pennsylvania.