How much tax will the gas companies pay to the state of Pennsylvania? How does this amount compare with taxes paid to other States in the U.S.?

The oil and natural gas industry is taxed like every other company doing business in the Commonwealth of Pennsylvania. In fact, since 2006, these companies have paid more than $1.6 billion in state taxes, with $420 million coming in 2011 in the form of corporate income taxes, sales tax and employee withholding taxes. This was a 77% increase from 2010 ($237 million).

Additionally, through the enactment of Act 13, $204 million of impact fee revenue was distributed to local communities and state-wide programs.

Because every state’s tax structure is unique, there is not an apples-to-apples comparison on a state-by-state basis. For example: Texas doesn’t have a corporate or personal income tax, but does have a severance tax on oil and gas development. Pennsylvania on the other hand, has a personal income (3.07%) and corporate income tax (9.99%) withholding, both of which are paid by the natural gas industry.