Independent Fiscal Office Projects Up To $24.3 Million Growth In Act 13 Drilling Impact Fee Revenue Collected In 2023; Lowest Ever Effective Tax Rate Of 0.6%

On June 21, the Independent Fiscal Office updated its Act 13 Drilling Impact Fee revenue report saying per well fees collected next year will increase by up to $24.3 million to a new high of $258.7 million due to natural gas price spikes.

At the same time, the effective tax rate on natural gas drillers will be the lowest on record-- 0.6 percent-- down from 1.3 percent this year and a high of 6.4 percent in 2015.

The Act 13 fee is assessed per well based on a formula in law that sets the fee based on the price of natural gas.  It is not based on natural gas production like a severance tax.

Click Here for the update analysis.

(Photo: FracTracker Alliance.)

Related Article:

-- PUC Distributes $234 Million In 2021 Revenue From Act 13 Drilling Impact Fee; Represents Lowest Effective Tax Rate On Natural Gas Companies On Record - IFO

Related Article This Week:

-- Who’s Protecting Taxpayers?  House Republicans Pass Bill Exempting Conventional Oil & Gas Wells From Plugging Bonds Sticking Taxpayers With $5.1 Billion In Cleanup Liability 

[Posted: June 21, 2022]  PA Environment Digest