Murt Bill to Add Severance Tax on Natural Gas Passes Committee
10/20/2017
HARRISBURG– Legislation co-sponsored by Rep. Tom Murt (R-Montgomery/Philadelphia) that would impose a severance tax on natural gas extracted in Pennsylvania has passed the House Finance Committee. It will now move to the whole House for consideration.

“This is a major step in making the natural gas industry pay its fair share in helping fund programs necessary to fulfill our obligations to our schools and those with special needs,” Murt said.

House Bill 1401, which was amended by the House Finance Committee, would levy a severance tax at an incremental, market-driven rate based on volume at extraction. The tax would apply to unconventional gas wells that are also subject to the state’s impact fee. The rate would start at 2 cents per thousand cubic feet of natural gas if the price is not more than $3 and increase to a maximum of 3.5 cents if the market price is greater than $5.99.

The severance tax would not apply to natural gas used by a lessee or on shallow wells. The tax would also be prohibited from being passed along to the landowner, lease holder or other property owner.

Proceeds would be distributed to the state’s General Fund.

“This severance tax would do a great deal to help us close the current funding gap and would become a recurring revenue source in the future,” Murt said. “I urge all my House colleagues to support this measure.”

Pennsylvania, one of the largest producers of natural gas in the nation, is the only major gas-producing state that does not impose a drilling tax.

Representative Thomas P. Murt
152nd District
Pennsylvania House of Representatives

Media Contact: David Foster
267.207.0207
dfoster@pahousegop.com
RepMurt.com / Facebook.com/RepMurt



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