Over the past two decades, Pennsylvania has become the second largest source of natural gas production in the United States after Texas. Together, these two states account for almost half of all the gas produced in the U.S. Unfortunately, the citizens of Pennsylvania have not benefited much from this bonanza of gas extraction because the gas companies have not been paying a fair rate of taxation for this finite and valuable commodity. Over many years, the citizens and taxpayers of our state have been denied billions of dollars in tax revenue. It is way past time that the gas companies pay …
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Over the past two decades, Pennsylvania has become the second largest source of natural gas production in the United States after Texas. Together, these two states account for almost half of all the gas produced in the U.S. Unfortunately, the citizens of Pennsylvania have not benefited much from this bonanza of gas extraction because the gas companies have not been paying a fair rate of taxation for this finite and valuable commodity. Over many years, the citizens and taxpayers of our state have been denied billions of dollars in tax revenue. It is way past time that the gas companies pay their fair share. Currently, there are pending bills in the state Senate and House that address this problem. Our state representative, Tarik Khan, is leading efforts in the House to move this bill forward. It is crucially important that this legislation get passed in both houses and signed by Gov. Shapiro.
All of the major gas-producing states except Pennsylvania have a severance tax which is applied to the volume of gas that is produced. Pennsylvania has an impact fee system that is a flat fee applied to a gas well head. According to state representatives Tarik Khan and Chris Pielli (D-Chester), gas severance tax revenues for 2024 for Texas (which produces 26% of the country’s natural gas) totaled over $2 billion, while Pennsylvania (which produces about 20% of the country’s natural gas) collected only $164 million in impact fees.
Once a severance tax system is implemented, there will probably be additionally over $1 billion annually in the state budget for schools, roads and other vital state funded programs. The gas companies have spent large amounts in lobbying and donations to Pennsylvania politicians to prevent a severance tax. Both Republicans and Democrats have received money, but the overwhelming majority has gone to Republicans. It’s time to let the politicians know that they work for us and not for the gas company lobbyists. This gas belongs to all the citizens of Pennsylvania, and once it’s gone, it’s gone forever. These companies should be fairly compensating us and not getting it for next to nothing.
James Aleo
Chestnut Hill
