Impact Tax Works for Pennsylvania
For township supervisors and county commissioners across the entire Commonwealth, the more than $2 billion in natural gas tax revenue generated for community, environmental, and economic development programs is far from a “rip-off,” as Sunday’s editorial wrongly suggests.
Rather, Pennsylvania’s impact fee is a successful tax policy that, in addition to the billions of dollars in investments and all other business taxes paid by the industry, demonstrates how natural gas development is an added benefit to each of Pennsylvania’s 67 counties.
Coupled with supporting environmental initiatives such as the Growing Greener Fund or low income housing programs, revenue is also distributed directly to county and municipal governments for a variety of use including conservation and recreation projects, watershed restoration, public safety, IT upgrades and even property tax reduction.
Yet misguided calls to layer more taxes on Pennsylvania businesses cast a chilling effect on much-needed investments and dries up funding for important community development projects.
Consider, Lackawanna County – despite having little gas production activity – has received nearly $3 million in impact fee-supported grants, for park rehabilitation and infrastructure upgrades since 2012. That’s in addition to the roughly $2 million that’s gone directly to county and municipal reserves over the years.
Since 2012, Pennsylvania’s effective impact tax rate has been above the national average while generating these critical financial resources, Combined with new job opportunities, lower energy prices for consumers, and cleaner air, development of our natural gas continues to pay big dividends for all Pennsylvanians.
Dave Callahan
Marcellus Shale Coalition
Mechanicsburg, Pa.
Click here to view this letter online.
