Pa. Legislators Float 4.9% Tax On Natural Gas Drilling

Law360, New York (December 18, 2013, 5:11 PM ET) -- A proposed law in Pennsylvania would tax drilling activity at 4.9 percent, a measure its bipartisan writers say would replace impact fees so more people can benefit from the commonwealth’s recent surge in natural gas development.

The state would impose the severance tax on the actual value of any resources removed and would replace impact fees, which developers pay to compensate for environmental damage caused to the communities that surround drilling sites.

Forty percent of the revenue will go toward replacing the impact fees, which are...
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