Wolf urges Pa. House Republicans to consider severance gas tax

Pennsylvania Gov. Tom Wolf (D) called on Pennsylvania House Republican leaders to consider imposing a severance tax on unconventional natural gas production. “It is well past time for [them] to allow a vote on a commonsense severance tax that will make oil and gas companies finally pay their fair share,” he said on Oct. 24.

A majority of Pennsylvanians support such a tax, along with many Republicans and Democrats in the House and Senate, Wolf said. “Pennsylvania should no longer be the only gas-producing state in the country without one. I am calling on the House to hold a vote on a severance tax this week,” he said.

Rep. Gene DiGirolamo (R-Bucks County) introduced HB 1401 on May 18 with 23 cosponsors. The House’s Finance Committee reported an amended version out on Oct. 18. Oil and gas associations in the state expressed their criticisms most recently in July.

“It’s true, the gas may be here, but it is also in many other states where the tax, business, and regulatory climate—even in those states with severance taxes—is more amenable to economic development,” Pennsylvania Independent Oil & Gas Association Pres. Daniel J. Weaver said. “Pennsylvania would lose out on new investment and our industry will not succeed as the governor claims he wants.”

Marcellus Shale Coalition Pres. David Spigelmyer, meanwhile, said, “This proposal, which creates new and even higher energy taxes for consumers and energy producers alike in addition to the impact tax that’s generated $1.2 billion in revenue, will erode the commonwealth’s competitive advantage that can revitalize our manufacturing base and spur other critical downstream opportunities.”

Contact Nick Snow at [email protected].