Philly Dem Says Impact Fee Ripping Off PA, Wants Severance Tax

Every year that former Pennsylvania Governor Tom Wolf governed, he requested (and was denied) the addition of a severance tax on oil and natural gas production in the Keystone State. The Democrats in PA have insisted, on and off, on slapping a severance tax on top of the existing impact "fee" (i.e., tax) since the Act 13 law was passed in 2012 (see Gov. Corbett Signs New Marcellus Drilling Law). The issue of a severance tax on production came up again at an appropriations committee hearing yesterday in Harrisburg. State Senator Art Haywood, a Democrat from Philadelphia, said drillers are ripping off Pennsylvania and that the impact fee revenue is far less than would be revenue from a severance tax.

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