PA IFO Predicts 2018 Impact Tax Will Raise Record High $224 Million

The PA Independent Fiscal Office (IFO) does a pretty good job of guesstimating how much impact fee revenue will get generated in the coming year, based on permit and producing wells activity this year. How good? Last year the IFO predicted that impact fee (equivalent of a severance tax) revenue would be $222 million for 2017 (see IFO Predicts PA Impact Fees for 2017 Will Soar, Near Record High). They weren’t too far off. The state Public Utility Commission, charged with collecting the fee, just disbursed impact fee revenue raised in 2017. The grand total was $210 million (see PA Impact Fee/Tax Hauls in $210M in 2017 – Third Highest Ever). There was $6 million “missing” from that number due to a dispute over what is, and what is not, considered a “stripper well.” If you were to include the $6 million (as the IFO does in their estimates), then 2017 revenue would have been $217 million–not far from IFO’s $222 million estimate. The IFO just released an impact fee update (full copy below) with an outlook for 2018. The IFO predicts next year’s impact fee will generate $224 million in revenue. If that estimate bears out, it would be the highest amount of revenue generated by the fee since its beginning in 2011…

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