Development of Marcellus Shale resources continue to affect local communities while impacted counties receive no revenue from oil and gas development. Counties seek the restoration of their ability to assess oil and gas interests as property.

Giles noted that counties had the ability to assess oil and gas prior to a 2002 Pennsylvania Supreme Court decision. If the state does not reverse the court decision through legislation, the property tax burden will be borne disproportionately by the remaining taxpayers. Counties also support a local share of any new revenue to be derived from natural gas development through state levies such as a severance tax.

“Other businesses in the Commonwealth contribute a share to the local property tax base, and producers of other minerals such as coal and limestone already pay a share as well. If the legislature does not restore counties’ ability to assess oil and gas, the tax burden will be disproportionately shouldered by all other property taxpayers. There is no reason that other local taxpayers should continue to be forced to subsidize property taxes that should be paid by energy companies generating profits in Pennsylvania.”

The environmental priorities included on the counties list are:

Restoration Of County Recycling Fees: Due to a court decision, counties can no longer levy a local administrative fee to fund supplemental county recycling programs such as household hazardous waste collection, electronics recycling, recycling drop-off centers, illegal dump enforcement, and cleanup and tire recycling. Counties seek express statutory authorization to re-instate administrative fees that would be dedicated to recycling programs, administration of those programs and public education.

Marcellus Shale: The Marcellus Shale exploration and development affects nearly two-thirds of Pennsylvania’s counties, and has the potential to bring a boost to the state economy during an economic downturn. Yet this development is not without social, economic and environmental concerns. Counties seek action by the General Assembly to restore the ability to assess oil and gas for real property tax purposes, which was historically permissible until a 2002 Pennsylvania Supreme Court decision. Without the proper taxation of oil and gas companies’ interest in mineral rights, an inequitable tax burden is placed on other property taxpayers. Counties also seek amendments to the Clean and Green statute, which will give consistency to its application on Marcellus operations throughout the state.

Farmland Preservation: Pennsylvania’s farmland preservation program is recognized as a national leader, and counties are an important partner in protecting farmland and open space. Counties have invested more than $370 million local dollars toward purchase of conservation easements through the state program since its inception. The annual county financial commitment to farmland preservation has grown steadily since it began in 1989. Counties currently have only two options to increase their investment in either purchasing conservation easements – through property tax revenues or borrowing on a bond initiative. The Association’s Pennsylvania County Platform supports authority to enact other dedicated funding sources, such as a county realty transfer tax of up to one percent, with revenue dedicated to preservation of farmland and open space

Restore Assessability Of Oil And Gas: In 2002, the Pennsylvania Supreme Court ruled in Independent Oil and Gas Association v. Fayette County that counties could not assess oil and gas as real property, because the ability to assess these minerals is not specifically granted in the county assessment law. Since that time, oil and gas interests have been escaping local property taxes, which had been paid in oil and gas producing counties since at least the early 1900s. Producers of other minerals such as coal and limestone already pay their fair share of the property tax. Counties support reversing the Supreme Court’s 2002 decision to assure that oil and gas companies contribute their share to the local tax base as well.

A complete list of county priorities is available online.