Pa.’s Existing Natural Gas Tax Funds Infrastructure, Environmental Programs

Instead of promoting the infrastructure, housing and environmental initiatives funded with revenues from Pennsylvania’s existing tax on natural gas, Governor Wolf is visiting communities to push a massive energy tax increase that will burden consumers and cost jobs.

The governor’s latest energy tax increase, part of the “Restore Pennsylvania” plan, would levy a tax top of a tax, even though Pennsylvania’s natural gas impact fee (tax) is on track to generate a record $247M this year and nearly $1.7 billion since 2012. The majority of these revenues directly benefit communities, where local leaders decide projects, like flood mitigation, road and bridge improvement, park and trail upgrades, or first responder services, to fund.

Commenting on the recently released proposal, MSC’s David Spigelmyer warned that hard-working Pennsylvania families will shoulder the burden of this tax increase:

“Pennsylvania’s tax on natural gas – the impact fee – generates hundreds of millions of dollars annually for critical infrastructure programs across the entire Commonwealth. This existing annual tax revenue, when combined with other business taxes paid by the industry as well as lease bonuses and royalties tied to natural gas development on state land, has provided nearly $5 billion in revenue since unconventional shale gas development began.

“Imposing additional energy taxes will cost consumers, hurt local jobs, especially among the building and labor trades, and negatively impact investment needed to safely produce clean and abundant energy that’s ushering in a new era of manufacturing growth. We’ll continue to work with leaders in Harrisburg on solutions to drive continued economic growth, environmental progress and a brighter future for the entire Commonwealth.”

We’ll track where the Governor’s stops on his “Restore Pennsylvania” tour and detail some of the specific projects, programs and initiatives funded through Pennsylvania’s existing natural gas tax.

Last updated: Feb. 21, 2019