IFO Projects 2020 PA Impact Fee Revenue Fell by $55.9M (28%)

In early 2020 Pennsylvania raised $198.2 million from its version of a severance tax, called an impact fee, based on drilling activity from 2019, which was down from the previous year (see IFO Projects 2019 PA Impact Fee Revenue Fell by $53.6M (21%)). The state’s Independent Fiscal Office (IFO) is out with projections for how much revenue will be raised this year (based on drilling in 2020). Given the pandemic and a crash in natural gas prices early in the year, you won’t be surprised to learn the impact fee will drop another $55.5 million, to $144.85 million. That’s a drop in the impact fee of 42% over the past two years. Ouch.

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