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API-PA: tax proposal bad for Pennsylvania

Published by , Senior Editor
Hydrocarbon Engineering,

API-PA Executive Director Stephanie Catarino Wissman has released the following statement on Governor Tom Wolf’s renewed proposal to increase taxes on Pennsylvania’s natural gas industry.

“The governor’s severance tax – which he has proposed six times in six years – continues to be counterproductive, jeopardising the very existence of the natural gas industry in our state. Responsible natural gas development has been good for the state economy, good for local economies and good for Pennsylvanians. This initiative doesn’t restore Pennsylvania; it jeopardises Pennsylvania’s economy and the hundreds of thousands of jobs supported by natural gas production.

“Pennsylvania has led the way for the nation in natural gas production, and due to our energy leadership, the world has seen a monumental shift in the balance of energy power. This leadership is delivering for communities across the Commonwealth – by keeping utility bills down and bringing manufacturing jobs back, all while delivering savings and cleaner air to Pennsylvanians.

“This additional tax could discourage investments and risk the loss of revenues that have helped bolster communities and infrastructure in all 67 counties.”

A statement on the API’s website reported that since 2012, Pennsylvania has generated nearly US$1.7 billion in new revenues from the existing impact tax, and per the Independent Fiscal Office estimates, the impact tax collected from the natural gas industry in 2019 will bring that total close to US$2 billion. Since its creation, counties and municipalities used these funds for environmental programme, public safety and emergency preparedness, infrastructure construction, and more.

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