75 Letter to Editor: Severance Tax for Revitalization

LETTERS

A severance tax would help PA where it needs it the most

Samuel Walker

Sharon

 

Pennsylvania is the only natural gas producing state without a severance tax.

 

A severance tax is a state tax imposed on the extraction of non-renewable natural resources that are not intended for consumption in other states.

 

Pennsylvania produces more natural gas than any other state except Texas. Texas is the number one producer. Pennsylvania is second.

Most of Pennsylvania’s natural gas production or withdrawals is from fracked wells.

 

In 2017 the Pennsylvania percentage of withdrawals in comparison to Texas natural gas withdrawals was 68%. (United States Department of Energy, Energy Information Agency, www.eia.gov).

Texas in 2017 had $1,527,000,000 (One billion and five hundred twenty seven million dollars) in natural gas severance tax revenue. (Comptroller, Texas Gov).

 

Sixty-eight (68%) of Texas natural gas severance 2017 revenue would be $1,068,000,000 (One billion and sixty-eight billion dollars).

 

Pennsylvania has a greater portion of its natural gas moved over state lines and thus into interstate commerce than Texas does. The estimated foregone PA severance tax revenue would be $685,000,000 (Six hundred and eighty five million dollars).

 

Pennsylvania does not have a natural gas severance tax. 

Pennsylvania is the only natural gas producing state without a natural gas severance tax.

 

It is puzzling to this Pennsylvanian that there is no natural gas severance tax.

 

Revenue from a Pennsylvania natural gas severance tax could fund the elimination of blight in Pennsylvania towns and cities, fund storm recovery, enhance and extend internet capacity, and encourage natural gas based manufacturing investment.