PA Budget and Policy Center Report on Structuring Severance Tax

Our friends at the Pennsylvania Budget and Policy Center has released a report offering their suggestions for structuring a severance tax for the marcellus shale natural gas industry. Among their points:

SET A REASONABLE TAX RATE
LIMIT UNCESSARY LOOPHOLES AND DEDUCTIONS
DO NOT PROVIDE A “CAPITAL RECOVERY” TAX BREAK
DO NOT INCLUDE A “LOW-PRODUCING WELL” EXEMPTION
ENACT LEGISLATION TO APPLY LOCAL PROPERTY TAXES TO OIL AND GAS
CREATE A SENSIBLE PLAN TO SHARE REVENUE WITH LOCAL GOVERNMENTS AND ENVIRONMENTAL PROGRAMS
ENSURE TRANSPARENCY IN COLLECTING AND REPORTING DRILLING AND PRODUCTION DATA