PITTSBURGH (Newsradio 1020 KDKA) - Governor Tom Wolf has proposed a severance tax on Marcellus Shale natural gas drilling multiple times with little success, but is seeking to implement the tax again.
Those opposed to the tax fear it would drive some drillers out of Pennsylvania.
In previous years, the state legislature has blocked the severance tax. This year, Wolf did not incorporate it into his annual budget, but is seeking to have it funded separately.
The severance tax would apply to the minerals taken from the ground during drilling. It would be implemented on top of an impact tax already in place that is projected to bring in a record $247 million to Pennsylvania.
Marcellus Shale Coalition President Dave Spigelmyer tells KDKA Radio he believes the heightened taxes could drive business out of the state.
"The governor totally dismisses the funds that are generated in the impact tax," he said. "He adds a 4.5 percent tax on top of that and renders Pennsylvania's business investment in Shale uncompetitive with other states."
Wolf has stated previously that states like Texas use similar taxing methods, and Pennsylvania would use the money for statewide initiatives like disaster recovery and the expansion of broadband internet.