Testifying at the April 3 hearing, PBPC Research Director Michael Wood highlighted just how common severance taxes are across the United States. Most natural gas-producing states assess a severance tax on drilling, and of the 14 states with greater production than Pennsylvania, all but California levy the tax.
Wood told lawmakers on the committee that Pennsylvania can learn several important lessons from other states’ experiences with severance taxes as policymakers work to implement a well-structured tax that will protect Pennsylvania taxpayers from the future costs of natural gas drilling.