Severance

West Virginia’s severance tax collections for the 2017 fiscal year (FY) that ended last month came in at more than $321 million to finish $58.5 million above estimates for the period and 16% higher than 2016 receipts, which marked a low point not seen in years for the line-item.

Pennsylvania Gov. Tom Wolf is urging lawmakers to consider his proposal for a 6.5% tax on natural gas production as the Friday deadline to pass a balanced budget approaches.

West Virginia’s severance tax collections through the first nine months of fiscal year (FY) 2017 have come in $13 million above estimates, reversing a downward trend that began in 2015 when the state was forced to make spending cuts due in part to the steep decline of commodity prices at the time.

Pennsylvania’s Independent Fiscal Office (IFO) said this week that Democratic Gov. Tom Wolf’s renewed proposal for a 6.5% severance tax on natural gas production would give the state the highest effective rate in the country.

Pennsylvania Gov. Tom Wolf on Tuesday proposed for the third time a severance tax on natural gas production to help plug yet another structural budget deficit that’s projected to be $3 billion in the state’s next fiscal year, which begins in July.

Ohio Gov. John Kasich on Mondayrecycled a failed budget proposal to increase the state’s severance tax on unconventional oil and natural gas production to 6.5%.

As Pennsylvania’s House and Senate leaders continued to negotiate over ways to fund a $31.5 billion state budget on Tuesday, the severance tax on natural gas production proposed earlier this year by Democratic Gov. Tom Wolf was not among the options being discussed.

An Ohio lawmaker from Belmont County, which has been transformed in recent years by heavy Utica Shale development, has introduced legislation that would direct more oil and gas severance tax revenues to communities most affected by drilling.

Pennsylvania’s Independent Fiscal Office (IFO) said this month that Democratic Gov. Tom Wolf’s latest proposal to enact a 6.5% severance tax on natural gas production would give the state the highest effective rate in the country.