Credit: Tom Sofield
State Rep. Tina Davis (D-141) announced this week a proposal she hopes will address Pennsylvania’s education and budget funding problems.
The proposal, which was announced to Davis’ colleagues in Harrisburg on Tuesday via a memo, would impose an overall 8 percent tax on the state’s Marcellus shale natural gas and oil industry.
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“A severance tax is crucial to restoring fairness to our property taxpayers, responsibility to our schools and sanity to our state budget and pension plans,” Davis said. “Pennsylvania is blessed with natural gas reserves, but Pennsylvania and its taxpayers should benefit rather than be victimized from its extraction.”
Gov. Tom Wolf will be announcing his proposed budget on March 3. At that time, he will have to tackle the state’s $2 billion structural budget deficit and speak of funding education going forward. Davis is hoping to help the new governor, a Democrat, fill the expected budget gaps.
“It is time for producers to pay their fair share and provide fair funding for essential services for depleting this valuable resource,” Davis said.
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“My approach takes into account both the price of gas and the volume of the gas severed,” Davis stated in her co-sponsorship memo to House colleagues. “By using the value and volume approach, the effective rate is not affected by the short-term volatility of the market and will provide a steady stream of money to the commonwealth.”
The state representative called former Gov. Tom Corbett’s previous impact fee with an effective tax rate of 1.9 percent “paltry.” She added in her memo the fee would remain in effect under her proposal.
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Davis told LevittownNow.com she is expecting to work with other lawmakers refine her proposal.
As of noon Tuesday, Democratic Leader Frank Dermody, Policy Chair Mike Sturla and Caucus Secretary Rosita Youngblood had signed on as co-sponsors of the proposal, House spokesman Matthew Maciorkoski said. The three are all members of the House Democratic leadership team.
