Legislation has been introduced in the Pennsylvania General Assembly to impose a natural gas severance tax. Severance tax is a state tax imposed on the extraction of non-renewable natural resources that are intended for consumption in other states.
The Pennsylvania Department of Community and Economic Development (DCED) commented that Pennsylvania is the second-largest producer of natural gas in the country and will likely overtake Texas as the top producer in a few years. However, despite this, the DCED noted that Pennsylvania is the only gas-producing state that does not impose a gas severance tax.
As introduced:
The bills are in committee in the Senate. S.B. 183, as introduced in the Pennsylvania Senate on February 1, 2019; S.B. 468, as introduced in the Pennsylvania Senate on March 21, 2019; News Release, Pennsylvania Department of Community and Economic Development, June 10, 2019