Impact Fee Outlook, Comparison Study Released

The Independent Fiscal Office released an Impact Fee Revenue Update and Outlook for the natural gas impact fee in Pennsylvania. The report provides further analysis of why the 2023 impact fees, which were announced last week, were down by $100 million compared to the prior year. The report provides its analysis and outlook of 2024 impact fee estimates and based on natural gas prices that are expected to remain low and a stagnant well drilling activity, it estimates that 2024 fees will be about $10 million to $15 million than the 2023 fees. Click here to read the analysis. 

In addition, the Legislative Budget and Finance Committee released its study yesterday on HR 131, An Examination of Natural Gas Tax Structures. The report Pennsylvania’s gas production and impact fee structure and revenues with that of the states with large gas production. Pennsylvania currently is the second highest natural gas producing state, but its revenues from natural gas production is lower compared to other states. In other states, most of the revenue goes to the state governments, while the Pennsylvania impact fee was first in the nation where most of the funds were directed to local communities. Click here to read the report highlights and here for the full report.