Severance Tax to Come Up for Vote Today: Call Now!

(from our friends at the Pennsylvania Budget and Policy Center)

A severance tax bill is now going to the House floor for a vote today, September 28. SB1155 sets a competitive tax rate and has no front-end exemptions. It is expected to raise $120 million in the first six months of 2011 and $326 million in Fiscal Year 2011-12. A vote is scheduled for 3 pm. Please contact your legislators right now!

The final bill allocates the first $75 million in funds raised this fiscal year to the General Fund. $70 million will make up for Pennsylvania's reduced FMAP allocation, and $5 million will go to the Department of Labor and Industry for worker training. The legislation also includes an annual $10 million job tax credit.

After the first $75 million this year and for all future years, funds are distributed as follows:

  • 60% to the General Fund
  • 40% to environmental programs and local governments

SB 1155 will provide a stable source of new funds for health care, human services, and education well into the future, protect the environment and compensate communities affected by natural gas drilling.

Please call to ask lawmakers to support funding for important human services through the severance tax.  You can visit the Pennsylvania Budget and Policy Center's Severance Tax Action page for more details.

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