From The Times
State Rep. Jim Christiana last week said he wants to eliminate Pennsylvania’s impact fee on natural gas drilling and replace it with a severance tax, a proposal that is garnering mixed reactions from local stakeholders.
Christiana, R-15, Beaver, said his proposed legislation would include an initial 3 percent severance tax starting on July 1. The tax would be tied to the price of natural gas, however, meaning it could increase to as much as 5 percent according to market conditions.
Christiana’s proposal would abolish the impact fee that has been used in Pennsylvania since 2012. Last year, the impact fee distributed $223.5 million across the state.
In contrast, Gov. Tom Wolf previously touted a plan that would have kept the impact fee while also adding a 3.5 percent severance tax and a charge of 4.7 cents per thousand cubic feet.