2023 Legislative & Regulatory Update

As we prepare to close out 2023, let’s take a look at the year’s legislative updates for the tri-state area.

Pennsylvania Legislative Update

Pennsylvania opened its legislative session January 3 and is scheduled to close on November 30. HB1273, which attempts to improve a volumetric severance tax on unconventional natural gas, was introduced May 31. The tax fee does not affect the collection of the unconventional gas well fee imposed under Chapter 23 of the Tax Code (Impact Fee), and is graduated based on the average annual price of natural gas for the calendar year preceding the start of the imposition period, as shown in the table below.

For fiscal year 2023-24, the imposition period is July 1, 2023, to April 30, 2024. For FY 2024-25 and beyond, the imposition period is May 1 of the preceding fiscal year to April 30 of the current year. By June 15, 2024, and by that date each year thereafter, every producer must submit payment of the volumetric severance tax to the department and submit a report on a form prescribed by the department for the imposition period.

West Virginia Legislative Update

West Virginia’s legislative session ran from January 11 through March 11. SB13 would amend sections 22-6-2 and 22-6-29 to provide for a $100 annual oversight fee per well for wells producing more than 10,000 cubic feet of gas per day (10 MCF) and allow for transfer of this fee to the Oil and Gas Reclamation Fund. It failed sine die.

Ohio had no legislative updates.

This update is based on legislative and regulatory information available at the time of publication and is not intended as legal, tax or accounting advice.

About Schneider Downs Tax Services 

Schneider Downs’ tax advisors have experience and expertise in a wide range of industries, including Automotive, Construction, Real Estate, Manufacturing, Energy & Resources, Higher Education, Not-for-profits, Transportation and others. Our industry knowledge and focus ensure the delivery of technical tax strategies that can be implemented as practical business initiatives.  

To learn more, visit our dedicated Tax Services page.