Taxation

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    New PA Legislation SB 1499 Would Stop Many Pipeline Projects

    In a cleverly disguised move to stop Marcellus drilling, two Philadelphia-area state senators–Andy Dinniman (Democrat, Chester) and John Rafferty (RINO, Montgomery)–have teamed up to introduce legislation, Senate Bill (SB) 1499 (full copy below) that would assess an “impact fee” on new pipelines and possibly existing pipelines re-purposed for a different use. The pipelines getting this new fee are pipelines that specifically carry natural gas, NGLs or oil (other pipelines don’t count). The fee would only be assessed on pipelines in what they define as “high-consequence areas” like, you know, the Philly area. Places with lots of residences and businesses. You live in the sticks? They don’t care. You don’t get nuthin. You live someplace “important” like Philly? Soak ’em. Similar to the current drilling impact fee part of Act 13 (this is what’s clever), the money raised stays local–50% of it to the county, 40% to the town/city where the pipeline runs, and 10% to the state Public Utility Commission. How much of this new “impact fee” does the landowner get–the people who are most inconvenienced by having the pipeline? 0%…
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    Corbett Starting to Cave on Taxing Natgas? Sort of…

    In a fight for his political life, PA Gov. Tom Corbett is dipping his toe in waters he has, until now, not been willing to enter. In an interview with the anti-drilling PBS reporters at StateImpact Pennsylvania, Corbett talked about the possibility of a “transmission tax” on natural gas. He still doesn’t support a severance tax (thank God), but he is talking about a new tax on gas flowing through pipelines in the state. Dangerous talk, if you ask us. Corbett’s best shot at re-election is to NOT cave on the issue of unfairly taxing the drilling industry so grubby politicians in Harrisburg can redistribute the wealth, spending it on their own pet projects (pork barreling)…
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    PA Democrats Introduce 5% Severance Tax to Kill Shale Drilling

    Voters in Pennsylvania stand on a precipice. If they elect a Democrat governor and restore Democrat control to the PA House and Senate, there is no doubt a severance tax will be enacted on shale drilling, *in addition to* the existing impact fee that has now collected over $630 million in three years. Such a tax would be an unmitigated disaster. It would almost completely stop shale drilling in Pennsylvania–and no, it’s not an empty threat or hyperbole to say so. It is reality. Need evidence? Last week PA’s Democrats introduced yet another bill that would implement a severance tax–HB 2508 (see it below). Fortunately the existing Act 13 has a provision that if a severance tax is ever enacted, the impact fee disappears. However, you can count on the Dems to repeal that part of the Act 13 law and double-dip on the drilling industry, thereby killing shale drilling in PA…
    Read More “PA Democrats Introduce 5% Severance Tax to Kill Shale Drilling”

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    Former Gov. Tom Ridge Predicts PA Will Get Severance Tax

    Although we have a run-down on the news coming from the Shale Insight conference in today’s lineup (see Shale Insight News – Roundup of Who Said What), there is one bit of news that to us, towers above the rest. Former PA Gov. Tom Ridge was always a bit squishy back in the day–not truly a conservative. But an OK guy and an able governor. He’s a very important figure in Pennsylvania politics, even today. Ridge was, as you may recall, the very first Secretary of Homeland Security under George W. Bush following the 9/11 Islamic terrorist attack on this country. At yesterday’s closing session, Ridge said he believes Pennsylvania will adopt a severance tax, which is a very bad sign in our opinion…
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    Kasich to Laser Focus on Hiking Utica Severance Tax

    Apparently Ohio’s RINO Gov. John Kasich–he who calls skilled gas field workers from Texas and Oklahoma “foreigners” (although he loves the money and jobs provided by companies headquartered there)–hasn’t been “focusing” on the issue of soaking Utica drillers with high taxes and apparently that’s why it hasn’t yet happened. So Gov. Kasich will center himself, hum a mantra and focus really hard on screwing the Utica Shale industry in the coming year and that, he hopes, will do the trick to raise the severance tax rate in his state…
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    MSC Video Tells the Truth About Marcellus Industry & Taxes

    Somehow Pennyslvania’s Democrats (and anti-drillers) have been successful in planting the mind virus that the Marcellus drilling industry “isn’t paying it’s fair share” and needs to be taxed even more than it’s already taxed. MDN has pointed out the fallacy of this lie numerous times. The facts are: PA has a corporate income tax and also has an “impact fee” (a tax in our book) that taxes drillers in PA at rates comparable or higher than states like Texas that do have a so-called severance tax. In fact, over the past three years PA drillers have paid out $630 million in impact fees that have benefited all Pennsylvanians. That’s the point the Marcellus Shale Coalition (MSC) makes with a short video just out…
    Read More “MSC Video Tells the Truth About Marcellus Industry & Taxes”

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    PA Spending $6M on Program to Convert Vehicles to Natgas

    The Pennsylvania Marcellus is a gift that keeps on giving. Pennsylvania Gov. Tom Corbett announced yesterday that the third round of funding from Act 13 funds to convert vehicles to run on natural gas will open tomorrow–August 30th. So far PA has collected over $600 million in “impact fees” from Marcellus drillers under the Act 13 law passed by Corbett early in his administration. Most (60%) of impact fee revenue goes back to the local communities where drilling occurs–to compensate them for the hassles or “impacts” that come with drilling. But 40% of the impact fee money goes to communities (or programs) with no active drilling. We uncharitably call it political walking around money. Necessary to grease the hands of greedy politicians. Some of that walking around money goes to fund the conversion of cars and trucks to run on compressed natural gas–a worthy cause in our opinion. This time around $6 million of impact fee money will go to fund natgas vehicle conversions. Who can apply? Just about anyone–except individuals. It must be a company, non-profit or government agency/entity…
    Read More “PA Spending $6M on Program to Convert Vehicles to Natgas”

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    PA Rep White Introduces Bill to Double-Tax Marcellus Drilling

    What is it with politicians like PA Rep. Jesse White (Democrat, Washington County) and their need to suck taxes out of any and every business and person they can? White, you may recall, was caught using fake online IDs, pretending to be some of his own constituents, using anonymity to attack his own constituents who disagree with his anti-drilling positions (see How the Mighty Have Fallen: PA Rep White Admits Guilt, Not Sorry). PA legislators (mostly Republican) who crafted the state’s update to oil and gas drilling laws, called Act 13, wisely (presciently) included a clause in the Act 13 law that says if greedy politicians (like White) pass a severance tax on drilling in the state, the current impact fee will end. The intent was to have an impact fee instead of a severance tax. White has just introduced a bill (DOA of course) that will strip out the sunset clause and keep the impact fee even if a severance tax is passed. That is, White and others of his ilk want to double-tax the Marcellus industry in PA, with the end result of killing it…
    Read More “PA Rep White Introduces Bill to Double-Tax Marcellus Drilling”

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    Will PA’s Marcellus Miracle be Snuffed Out by a Severance Tax?

    Every now again you need to step back and consider the big picture when it comes to the miracle of fracking and horizontal drilling. Pennsylvania has seen an economic revolution from the Marcellus Shale industry. That revolution is in danger of being snuffed out by Democrats like gubernatorial candidate Tom Wolf who, if elected, promises to implement a Marcellus-killing severance tax. And no, this is not wild speculation. If you look at recent history, such a scenario is supported by the evidence. David Spigelmyer, president of the Marcellus Shale Coalition, penned an op-ed piece that ran in the Philadelphia Inquirer yesterday to “set the record straight” on just what the Marcellus industry has meant in PA and what a severance tax would do to the industry in that state should it be implemented…
    Read More “Will PA’s Marcellus Miracle be Snuffed Out by a Severance Tax?”

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    IMF Book Says Counties Should Tax Fossil Fuels Higher

    The International Monetary Fund, a liberal quasi-governmental organization released a new book yesterday in which they say countries like the United States don’t tax energy, particularly fossil fuels, enough. For the first time ever the IMF lays out what it says is the appropriate level of taxation on coal, natural gas, diesel fuel and gasoline for 156 countries. Of course global warming nuttery plays a major role in their calculations–got to reduce that darned carbon dioxide, ya know (the stuff you breathe out with every breath). IMF chief Christine Lagarde made up some cockamamie excuse why the IMF is concerned about so-called environmental damage instead of sticking to monetary policy. At a gala event last week in Washington, DC, Lagarde, who arrived from Europe on a fossil fuel jetliner and was chauffeured to the event in a fossil fuel powered limousine, said countries shouldn’t wait for everyone to agree. Just start taxing the #$@! out of their citizens now–to force them to give up those evil, nasty fossil fuels. Oh, and don’t forget to chip in a few billion to the IMF along the way…
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    PA Lt Gov Candidate Supports Raiding Drillers for Big Education

    Democrat Mike Stack, a PA State Senator from Philadelphia, is his party’s nominee for Lt. Governor this fall. Stack has close ties to big education and is a tool of teacher unions who want to raid another industry–shale gas drilling–to feed their addiction to ever-higher salaries while turning in ever-lower education standards for their students. So it’s no surprise that Stack is one of the toadies that introduced legislation to enact a sky-high severance tax on Marcellus Shale drilling…
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    PA Budget Signed by Gov. Corbett – No Severance Tax This Year

    Pennsylvania Gov. Tom Corbett, a Republican, signed a Republican-passed budget for the state yesterday. The budget, thankfully, does not include a Marcellus Shale severance tax. It does, however, include new regulations that separate drilling standards between conventional (vertical only) and unconventional (shale) drilling. MDN has long chronicled the battle by PA’s Democrats to transfer wealth from the drilling industry to PA schools, and in the process kill the goose laying the golden eggs in PA (see PPG Op-Ed: Don’t Kill the Marcellus Goose Laying the Golden Eggs). In signing the budget, Corbett axed a bunch of money from the legislature’s budget, which has led to a Republican civil war in Harrisburg…
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    PA’s Act 13 Impact Fees Help Fund Affordable Housing

    Pennsylvania Gov. Tom Corbett’s office announced yesterday that since 2011, the PA Housing Affordability and Rehabilitation Enhancement Program (PHARE) has invested $49.8 million from natural gas and federal funding sources has been invested in housing initiatives by the Corbett administration to address housing needs created by the growing natural gas industry presence in Pennsylvania. Much of that money has come from Act 13 impact fees…
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    PA Rep’s Economic Illiteracy On Display re Severance Tax

    stupid is as stupid doesWe have to wonder, is PA State Rep. Rosita C. Youngblood (Democrat from Philadelphia) actually brain dead? At a minimum she’s an economic ignoramus, understanding 0% about economics and business and what it takes to make a successful business. Youngblood had the temerity (stupidity?) to write an editorial for the Philadelphia Weekly Press in which she says casinos in the state are taxed 55% of all money that passes through their hands, and therefore a measly 5% (or even 10%) severance tax on shale drilling is peanuts. Uh, Ms. Youngblood, have you ever heard of the concept of risk in business? Or profit?… Read More “PA Rep’s Economic Illiteracy On Display re Severance Tax”

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    PA Budget Passes House & Senate with No Severance Tax

    Hats off to the Republican-controlled House and Senate in Pennsylvania. They passed a budget on time, before the midnight deadline last evening, and that budget contains just one new tax. Fortunately, it’s not a Marcellus Shale severance tax. So, kudos! However, the budget was not signed by PA Gov. Tom Corbett, also a Republican. He didn’t sign not because it because it didn’t include certain pension reforms he wants. One thing that the Democrats really wanted and the Republicans were only too happy to grant them: A new $2 per pack tax on cigarettes sold in Philadelphia, which is supposed to raise $80 million for Philly schools. Wait til they figure out everyone is fleeing to the suburbs to buy cheap cigs and the new tax fails!…
    Read More “PA Budget Passes House & Senate with No Severance Tax”

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    Corbett Still Says Marcellus Severance Tax a Possibility, if…

    We continue to be concerned about PA Gov. Tom Corbett’s resolve when it comes to slapping a Marcellus-killing severance tax on drillers in the state in order to fund a state budget that’s simply spends too much. Our latest concern is with comments he made to an AP reporter yesterday…
    Read More “Corbett Still Says Marcellus Severance Tax a Possibility, if…”