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Local Impact Fee Not the Answer; Pass Natural Gas Extraction Tax

Sen. Stack speaks at the Marcellus Shale press conference.

Did you know that the fines collected from red light enforcement cameras along Roosevelt Boulevard are used to help pay for transportation projects in communities across the state?

The tax revenue from SugarHouse Casino in Fishtown also gets distributed statewide.

If we’re willing to evenly divide red light camera fines between Philadelphia and the rest of the state, and we’re willing to share the revenue from our casino with the rest of the state, it seems like common sense that we as Philadelphians should benefit from natural gas extraction that is taking place right now in southwestern and northern Pennsylvania.

Unfortunately, that’s not the case.

Right now, natural gas drillers can extract our natural resources tax free.

That’s why several southeastern Pennsylvania lawmakers came together this morning to call on the governor and the General Assembly today to enact a natural gas extraction tax that benefits all Pennsylvanians.

We are the only gas producing state that does not impose a natural gas extraction tax. Considering our state’s dire fiscal situation, there’s something seriously wrong with this picture.

The people of Pennsylvania and many legislators support this tax. The only one who seems to be steadfast in the corner of the natural gas drillers is our governor.

The country’s top four natural gas producers are collecting hundreds of millions of dollars in extraction taxes.

In 2010, Texas generated $1.7 billion; Wyoming collected $721 million; Oklahoma collected $743 million and New Mexico collected $654 million.

Border state West Virginia is also benefiting from natural gas, collecting $417 million last year.

At a time when the state is facing a multi-billion-dollar deficit, severe cuts to education and social services, and a growing transportation infrastructure crisis, a natural gas tax is not only fair, it’s common sense.

Right now, Sen. Joseph Scarnati, a Republican from northern Pennsylvania, has proposed a local impact fee on gas drillers. Not a tax, but a fee.

The impact fee would be fairly minimal and the revenue collected from gas drilling would mostly go to communities where the drilling takes place.

Philadelphia would see none of the revenue.

Considering our contributions in gaming revenue and red light enforcement fines, not to mention the tremendous amount of money this city contributes to the state’s economy, it is wholly unfair.

If we had the guts to enact a true tax, we could ensure that affected municipalities and the entire state benefit from natural gas drilling.

The natural gas industry came to Pennsylvania because there’s a demand for natural gas. Tax rates will have a minimal impact. Last year, natural gas companies drilled more wells in West Virginia than in Pennsylvania. West Virginia has a 6 percent tax and Pennsylvania has no tax.

That’s why the legislature must stand up collectively, on behalf of the citizens who elected us to serve them, to enact a natural gas extraction tax that we can all benefit from.

Offices of State Senator Mike Stack

Office Hours: Monday-Friday from 9:00 a.m. - 5:00 p.m.

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