Steele’s resolution to audit potential revenue from severance tax on oil and gas approved in House committee
HARRISBURG, June 7 – A resolution calling for an audit of potential revenue from a severance tax on oil and gas, introduced by state Rep. Mandy Steele, D-Allegheny, was approved by the House Environmental Resources and Energy Committee Tuesday.
The resolution, H.R. 131, would direct the Legislative Budget and Finance Committee to conduct an audit on potential revenue Pennsylvania could have generated from a severance tax since the state enacted its impact fee in 2012.
“Pennsylvania has a rich history with the oil and gas industry as it helped build Pennsylvania’s economy,” Steele said. “Pennsylvania has 40,000 active gas wells and approximately 4,000 new wells drilled annually. As such, it is important that we collect all the information available to us through an audit by a politically neutral agency such as the Legislative Budget and Finance Committee to determine the potential revenue lost due to not imposing a severance tax. This audit will help inform us when taking legislative action to act in the best interests of Pennsylvanians.”
According to Steele, oil and gas companies pay significantly less with the impact fee than they would if Pennsylvania enacted a severance tax.
The resolution would also compare severance taxes imposed in other states and the amount of natural gas extracted in Pennsylvania since 2012.
The House Environmental Resources & Energy Committee approved Steele’s resolution by a vote of 12-9. It now moves to the full House for consideration.