Economy
4:05 pm
Fri March 21, 2014

Report: W.Va. Taxes Natural Gas Drilling Four Times as Much as Pa.

A new report from a nonpartisan office of the Pennsylvania Legislature says its state's taxes on the natural gas drilling boom are among the lowest in the nation.

A natural gas operation in Warren, PA.
Credit wikimedia

The figures released Thursday by the Independent Fiscal Office found that Pennsylvania is the only state with significant production that doesn't impose a severance tax based on the volume of gas produced.

 
The report found that a Pennsylvania well that began producing in 2014 will be taxed at an effective tax rate of no more than 1.6 percent, and perhaps less than half of that.

By comparison, a similar well in West Virginia will be taxed at over seven percent.

 
The Marcellus Shale Coalition, an industry group, says the analysis is flawed because it doesn't include other factors, such as corporate taxes.