Editor & Publisher, Marcellus Drilling News (MDN)
West Virginia’s severance tax is a poor performer compared to Pennsylvania’s impact fee; something legislators should bear in mind as Gov. Wolf tries again.
Thursday, the Pennsylvania Public Utility Commission (PUC), the agency charged with keeping tabs on impact fee revenue from shale drillers (Pennsylvania’s version of a severance tax), released the final numbers for impact fee revenues and disbursements in 2016 (see PA PUC Impact Fee Report: Revenue Down Again in 2016). Revenues were from the impact fee were down for the third straight year.
And, since politicians in Harrisburg are in the midst of budget negotiations and attempting to close a perennial gap in the budget, we have no doubt the hew and cry will go out, yet again, to enact a severance tax on shale gas and oil–either in addition to or on top of the impact fee. They ought to look at West Virginia.