Tuesday, January 24, 2017

Natural Gas Impact Fee Revenue Shrinks Another $13.1 Million For 2016

The Independent Fiscal Office Monday said the Act 13 drilling impact fee will being in $13.1 million less than last year for a total of $174.6 million.  That’s down $61.2 million from its high in 2013 of $225.7 million-- a 27 percent reduction.
That means Act 13 funding for environmental programs is $22.1 million less than in 2013.
IFO said the estimated revenue equates to an effective tax rate of 5 percent, down from 6.9 percent in 2015 and 2.4 percent in 2014, the year with the lowest effective tax rate.
The IFO pointed to several factors for the reduction: there are not enough new wells to offset older producing wells; reduced collections from newly-exempt older wells and collections from previously-exempt wells not rising about the production thresholds.
A copy of the full report is available for download.
NewsClip:
Revenue From Drilling Impact Fees Expected To Fall Again This Year

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