We’re expecting Gov. Wolf to double-down on a massive energy tax increase during his budget address. While the Governor will likely claim that “Pennsylvania is the only major producer of natural gas that does not ask drillers to pay their fair share,” the truth is just the opposite.
Ahead of the Governor’s fourth budget address consider these facts:
FACT: Pennsylvania Taxes Natural Gas and It’s Generated nearly $1.5 Billion in New Revenue.
- $1.5 Billion and Counting: Since 2012, Pennsylvania’s natural gas impact tax has generated $1.5 billion (and counting) in new revenue. These revenues, which total approximately $200 million annually, directly support communities in every county as well as key statewide environmental and conservation programs.
- Pennsylvania’s Burdensome Tax Climate: The natural gas impact tax is levied on top of the other taxes that all businesses in Pennsylvania pay – including the state’s second highest in the nation corporate net income tax. Natural gas development has generated more than $3.5 billion in income tax, bonus, and lease royalty revenue since 2008.
FACT: Natural Gas Impact Tax Strengthens Communities, Boosts Environmental and Conservation Programs.
- Over the past five years, more than $390 million from impact tax revenues have been invested in statewide conservation, environmental oversight, and recreation programs. Additionally, more than $657 million has been distributed to local governments to invest in key community programs, such as parks, trails, first-responder services, bridges, roads, farmland preservation, to name a few.
FACT: Independent Agency Confirms Gov. Wolf’s Energy Tax Highest in Nation.
- Double the Rate of Major Energy Producing States: According to the IFO, Gov. Wolf’s previous proposed tax hikes would set Pennsylvania’s natural gas tax rate at the nation’s highest and more than double that of fellow major oil and gas producing states such as Texas, Oklahoma and Louisiana.
- Highest in Appalachian Basin: If the governor’s previous proposed energy tax increases were implemented, Pennsylvania’s effective tax rate would be 592% higher than Ohio’s and 80% higher than West Virginia’s.
During the Governor’s Budget Address on Tuesday, join the conversation on social media by sharing these important facts using #SayNoToSeverance.