February 4, 2009

Governor ‘s Budget address : On Wednesday, Governor Rendell proposed a severance tax on natural gas that is in his words, ”is the same as West Virginia.”

From the Governor’s Executive Budget: “Proposed Change: A new tax on the severance of natural gas within the commonwealth is proposed.

The tax base is the value of the natural gas when severed. The rate is 5% of the value of the natural gas at the wellhead plus $0.047 per thousand cubic feet of natural gas severed. The tax is effective October 1, 2009.”