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We already have a natural gas tax in state

3 min read
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It’s disappointing and surprising the Observer-Reporter continues to ignore market realities in its call for even higher energy taxes (“Is Severance Tax Dead?” Aug. 11) considering Washington County is one of the top recipients in the state of revenue resulting from the impact fee. Here’s the absolute, crystal clear fact your readers deserve.

Pennsylvania taxes natural gas. It’s called the impact fee, and it’s a unique tax that’s generated more than $1 billion since 2011, including more than $73 million for Washington County and its municipalities.

And this tax is working as designed as local leaders rely on the additional revenues to boost funding for roads, bridges, first responders and community parks, to name a few. But don’t take my word for it – Amwell Township Supervisor Wayne Montgomery recently called the annual natural gas impact tax revenues a “godsend” that have enabled the township to “do things at the park, on roads, with fire departments (that) we wouldn’t be able to do.”

What’s more, the industry supported this tax, which is separate and apart from any number of other taxes businesses in the industry pay, such as Pennsylvania’s nearly 10 percent corporate net income tax (the nation’s second highest), not to mention millions in permitting fees and royalties to the state.

Despite what the paper claims, Gov. Wolf’s energy tax hike would make Pennsylvania the nation’s highest natural gas taxed state, according to Pennsylvania’s nonpartisan Independent Fiscal Office. In fact, IFO makes clear this massive tax increase, which is 54 percent higher than top gas-producing states, including Texas and Louisiana, and 41 percent higher than neighboring West Virginia, would lead to less overall natural gas production and therefore higher energy costs for consumers, working families, small businesses and manufacturers. What’s more, no other county in Pennsylvania stands as much to lose as Washington County should a tax be enacted. As a top recipient of impact fee allocations, Washington County stands to lose millions, as such a tax proposal would redirect money away from Washington County and eliminate the decision-making process for municipalities to determine how best to spend their taxpayer dollars, as the revenues under the governor’s proposal would instead be sent directly to the general fund in Harrisburg.

Rather than enacting job-crushing higher energy taxes that’ll just exacerbate this painful energy market downturn, leaders in Harrisburg must recognize shale’s end-use opportunities and support policies that encourage greater natural gas use, especially among our manufacturers and power generators.

David Spigelmyer

Marcellus Shale Coalition

Pittsburgh

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