During his campaign for Governor, Tom Wolf campaigned on a promise to recommend a fair natural gas severance tax in the Commonwealth of Pennsylvania. Yesterday, making good on his promise, now Governor Wolf proposed his first statewide budget which includes a five (5) per cent severance tax.
Reaction to the Governor’s proposal was swift. Natural gas producers criticized the proposed tax as unnecessary and crippling. Senate and House Republicans claimed that the new tax was excessive and not needed at this time. Local officials from Marcellus Shale drilling regions of the state who now reap the benefits of the current “impact fee” were also quick to criticize the Governor claiming that the new tax would take away monies needed by their communities to support the natural gas industry.
Proponents of the tax were just as swift to point out that of all natural gas producing states, Pennsylvania was the only one without a fair severance tax. Additionally, citing drastic cuts in education under Governor Corbett, advocates noted that the Governor proposes to use the severance tax revenues to shore up education and produce property tax relief.
The issue will now be placed into committee as everyone in Harrisburg tries to work out a new budget for 2015 which eliminate the current two (2) billion dollar deficit.
