WASHINGTON—A new blog post today from Resources for the Future (RFF) offers a roadmap for understanding the major decision presently facing Pennsylvania about whether to adopt a severance tax on the production of natural gas. Such a tax is levied in most US states to raise revenue from the extraction of a non-renewable resource. In Pennsylvania, the state Senate recently passed a budget that includes, for the first time, a severance tax on natural gas produced within the state.
Over the past decade, development of the Marcellus Shale formation has catapulted Pennsylvania to become the second largest producer of natural gas in the United States, trailing only Texas. The debate over a severance tax has been a perennial topic in recent years for Pennsylvania policymakers. It has featured strong opposition from industry groups as well as vocal support from key lawmakers, including Governor Tom Wolf.
In the post today, RFF Senior Research Associate Daniel Raimi considers the proposed severance tax, how it might affect producers in the state, and what it might mean for Pennsylvania’s public finances.
Read the full post: Understanding Pennsylvania’s Proposed Severance Tax.