Tuesday, May 19, 2015

Confusion Over Governor’s Severance Tax Proposal, Retaining Drilling Impact Fee

Gov. Wolf’s Chief of Staff Kathleen McGinty told the Pennsylvania Press Club Monday the Governor supports the Act 13 drilling impact fee and it is maintained under his severance tax proposal.
“The governor supports the impact fee. The impact fee is incorporated in his plan and actually he takes it one step better and guarantees those impact dollars to impacted communities at the highest levels they’ve ever been,” said McGinty.
However, severance tax proposals introduced last week advertised as the Governor’s severance tax proposal specifically do not retain the drilling impact fee.  The language says the fee expires on January 1, 2016.
The Governor’s proposal was introduced by Sen. James Brewster (D-Allegheny) as Senate Bill 116 (sponsor summary) and Rep. Margo Davidson (D-Delaware) as House Bill 1142.

2 comments :

  1. I believe a close reading of SB 116 retains the impact fee. Section 1124-E(a) states that the previously existing impact fee law, 58 Pa.C.S. Ch. 23, will expire when the new law is enacted. The next section, 1124-E(b), states that the fund (and the impact fee) will continue to be administered under the new law. So it's not the impact fee that expires, just the previous version.

    ReplyDelete
    Replies
    1. And HB 1142 contains exactly the same language.

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