Natural Gas Industry Paid Over $1 Billion in Taxes
Yesterday, the Pennsylvania Department of Revenue released detailed numbers, showing oil and gas producers paid over $1.1 billion in state taxes since 2006. This includes $234 million paid this fiscal year (through April 2011) from oil and gas companies in capital stock/foreign franchise tax, corporate net income tax, sales/use tax and employer withholding—already more than $20 million over last year.
The department’s analysis also identified $214.2 million in personal income taxes paid since 2006 from Marcellus Shale lease payments to individuals, royalty income and sales of assets. Quick math would indicate gas companies shelled out almost $7 billion to individuals in royalty and lease payments for the rights to drill.
The department’s release was a response to an error riddled “study”, that claimed drilling companies were not paying their fair share.
Taxes paid to the state does not include:
- $11 million collected by the Department of Environmental Protection through permit fees;
- $200 million spent by drillers to repair and improve local roads;
- $64 million in royalties from drilling on state-owned lands; and
- Local tax, fee and leasing revenues.