IFO: Annual Natural Gas Impact Fee Revenues to Hit Record High

Pennsylvania’s tax on natural gas – the impact fee – will likely generate a record $247 million in new revenue this year, according to a recent Independent Fiscal Office report. The nonpartisan agency’s estimate exceeds the 2017 total revenues by $37.4 million and puts the tax on track to generate nearly $1.7 billion since its inception in 2012.

Commenting on the report, MSC’s Dave Spigelmyer highlighted the benefits of the tax to communities and statewide environmental initiatives.

“Pennsylvania’s tax on natural gas, the impact fee, is working as designed and an important revenue source for statewide environmental and conservation programs, as well as communities in all 67 counties. This report, along with strong support from local leaders, demonstrates the benefits and effectiveness of the tax, which is projected to generate $37.5 million more than last year and total nearly $1.7 billion since 2012. Additional and higher energy taxes, as some in Harrisburg have continued to misguidedly pursue, jeopardize these local benefits and will be shouldered by hard-working Pennsylvania families through higher home energy costs.”

Here’s what they’re saying about the record impact fee revenue projections:

Pa. impact fees on shale wells projected to break record this year

“Pennsylvania’s impact fee on shale gas wells is expected to raise a record $247 million this year…The state will have raised nearly $1.7 billion collectively across eight rounds of impact fee payments, if this year’s projections are realized. Previously, the highest annual total was $225.7 million for 2013.” (1/24/19)

Fiscal office: 2018 impact fees hit record high

“Impact fees on unconventional natural gas operations in Pennsylvania hit a single-year high in 2018, according to the state’s Independent Fiscal Office. IFO, which does revenue projections and budgetary analysis for the Legislature and Pennsylvania residents, said in a research brief Thursday that gas wells that were drilled or operating last year generated $247 million in impact fee revenue.” (1/25/19)

Natural gas impact fee revenue expected to be up this year, agency says

“The impact fee is the annual fee that the state applies to each new unconventional well drilled into the Marcellus shale. Some of the money is distributed directly to counties to offset the costs of increased drilling activity. Some is made available to individual communities in the form of grants. The IFO projection means that distributions to Pennsylvania counties and municipalities could total $137 million this year.” (1/24/19)

Impact fee collected from gas drillers expected to reach new record

“The fee Pennsylvania collects from natural gas drillers is expected to reach a record $247 million this year, according to figures released Thursday by the state’s Independent Fiscal Office. The IFO cites two reasons for the projected uptick in revenue, which is expected to come in $37 million above the previous year.” (1/24/19)

Impact fee on gas wells could set record this year

“The state’s Independent Fiscal Office on Thursday released projections for this year’s total and estimated that $247 million will be collected. ….In a news release, David Spigelmyer, the president of the trade group Marcellus Shale Coalition, said the impact fee “tax” is “working as designed” and is an important revenue stream for communities across Pennsylvania.” (1/27/19)

Natural gas well impact fees to reach record high this year

“The anticipated collection of more than $22 million in disputed and outstanding state impact fees on natural gas wells will help drive total collections to a projected record high of $247 million this year. Butler County and its municipalities with wells received $1,948,743 in 2017. The state distributes 60 percent of the fees to impacted counties and municipalities.” (1/25/19)

Pa. drillers paid record amount in impact fees due to higher prices in 2018

“Pennsylvania natural gas producers will pay a record amount in impact fees in 2018 while at the same time paying the lowest effective tax rate on production since the impact fee was enacted in 2014, the state’s Independent Fiscal Office estimated Jan. 24. … The impact fee has strong support in the rural areas where gas extraction happens because 60% of the revenue is distributed back to the counties and townships where drilling occurs. ” 1/25/19

*Updated Jan. 28 to include additional media coverage.

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