- Pennsylvania Among 'Terrible 10' Most Regressive Tax States
- February 4 Non-Partisan Training: HOW TO RUN FOR ELECTION BOARD IN 2013: HOW TO RUN FOR COMMITTEEPERSON IN 2014
- Republican Governors Opt-In to Medicaid Expansion
- The Reports of Unions' Death Are Greatly Exaggerated
- Ask Allyson Schwartz to run for Governor
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- Jan. 14 Workshop:HOW TO RUN FOR ELECTION BOARD IN 2013; HOW TO RUN FOR COMMITTEEPERSON IN 2014
- Seth Williams on Guns, Jasmine Rivera on School Closures @PFC Meetup Wednesday
- PA Revenue Strong Midway Through Year; Tax Cut Could Have Big Impact
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Giving Away the Store: A Fact Check on Corbett/Ellis Marcellus Fee Plan
By Michael Wood, Research Director, & Sharon Ward, Director
The average Pennsylvania Marcellus Shale gas well is projected to generate $16 million over its life.
The Pennsylvania Budget and Policy Center compared four leading drilling tax and fee proposals before the General Assembly to determine the total tax revenue raised by each over the life of an average well. The effective tax rates for the plans ranged from 1.0% to 4.7%. Governor Corbett’s proposal would collect $160,000 over the 50-year life of an average well. A comparable well in Texas would raise $878,500 – five times more than Governor Corbett’s plan.
|Plan||Total Fee/Tax Revenue||Effective Fee/Tax Rate|
|Scarnati: SB 1100||$505,000||3.1%|
|Quinn: HB 1700||$710,000||4.4%|
|Murt/DiGirolamo: HB 1863||$770,000||4.7%|
Other shale gas-producing states ask much more from drillers.
Don’t give away Pennsylvania’s future with a weak drilling fee/tax bill.
 The revenue estimate for Sen. Joseph Scarnati’s SB 1100 assumed 3.8 billion cubic feet of production per well. To compare plans over time, we used a constant estimated price of $4.28 per thousand cubic feet over 50 years.
 Texas provides a tax reduction for “high cost wells.” This projection assumes a 3.75% rate (50% high cost well rate) for the first 10 years of production, then returning to 7.5% in Year 11. Actual rate reductions would vary by well.