Bill > SB910

This bill establishes a new natural gas severance tax in Pennsylvania, beginning January 1, 2026, which will be levied at a rate of 6.5% on the gross value of natural gas units extracted at the wellhead. Producers will be required to file monthly returns with the Department of Revenue within 15 days of each reporting period, detailing the number of natural gas units severed, the number of producing sites, and the amount of tax due. The bill defines key terms such as "natural gas" (a fossil fuel mixture primarily composed of methane) and "sever" (to extract natural gas from the soil or water of the Commonwealth), and provides specific technical standards for measuring gas volumes, including temperature and pressure considerations. The tax revenues will be deposited directly into the General Fund, and the bill also repeals a previously existing provision related to unconventional gas well fees. The legislation will take effect 60 days after its enactment, with the first tax return due on February 15, 2026. Importantly, the bill excludes coal bed methane from the definition of natural gas and does not apply to gas extracted from storage fields.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=S&type=B&bn=910