Though the impact fee survived a Pennsylvania Supreme Court ruling in December that struck down key provision of the legislation that enabled the fee, it now is facing a political challenge in Harrisburg about whether it should be retained for a fourth year.
Amid a debate about how to close a $1 billion-plus gap in Gov. Corbett's budget plan for the fiscal year beginning July 1, a growing number of lawmakers are calling for the state to enact a severance tax on natural gas production to replace the impact fee. A 5 percent severance tax, which would be assessed on the value of the natural gas produced, would generate about three times as much as the impact fee.
Tom Wolf, Corbett's Democratic challenger in the November election, also says he supports a "responsible and reasonable" severance tax.
Opponents of a severance tax say that gas drilling-companies already face high corporate taxes in Pennsylvania.
But the Pennsylvania Budget and Policy Center countered last week with a report saying that oil and gas extraction companies paid $10.3 million in corporate income taxes in 2013, less than the $19.6 million paid in 2008 when production was much lower.
The Marcellus Shale Coalition, an industry trade group, did not dispute the center's numbers, but questioned the motives of an organization it says is advancing an agenda supported by public-sector unions.
"Unfortunately, shortsighted election-year calls for new taxes on one of our most promising industries will lead to fewer jobs, lower energy production and less tax revenues," a coalition spokesman said in a statement.
(Andrew Maykuth, "Area counties' Shale impact fees up 15.5%," Philadelphia Inquirer, 6/17/14)

