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FOR IMMEDIATE RELEASE |
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State
Rep. Rick Mirabito |
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Mirabito working to contain property taxes
Signs on to bill that would create new funding source for local governments
HARRISBURG, March 9 – State Rep. Rick Mirabito, D-Lycoming, is among the co-sponsors of a bill that would give counties the option to assess value to natural gas, oil and coal-bed methane.
Mirabito said that H.B. 10, sponsored by state Rep. Bill DeWeese, D-Greene/Fayette/Washington, would create a funding source for counties that could reduce the need to raise property and/or sales taxes.
"This bill provides extra dollars to local governments at no cost to local taxpayers. We are simply asking that the owners of these natural oil and gas resources pay the same local property taxes as do other property owners in the Commonwealth," Mirabito said. "The value would be assessed against the developer or driller, not the landowner or farmer on whose property the wells are located."
Prior to Dec. 19, 2002, counties were permitted to assess value to natural gas, oil and coal-bed methane the same way that they do today for other mineral resources. However, on Dec. 19, 2002, the Pennsylvania Supreme Court decided in Independent Oil and Gas Association et al. v. Board of Assessment Appeals of Fayette County that the General Assembly had not explicitly recognized gas and oil as taxable interests. Mirabito said this legislation would correct that oversight and benefit local communities, school districts, property owners and taxpayers.
"All of the revenue generated from this bill would go to local entities. The state would not receive any revenue under this legislation," Mirabito said. "I have always felt that local residents should see financial benefits from natural gas drilling taking place in their community. This bill is one way to make that happen."
House Bill 10 is supported by the County Commissioners Association of Pennsylvania, Pennsylvania State Association of Township Supervisors, Pennsylvania State Association of Boroughs and Pennsylvania School Boards Association. The bill has 28 co-sponsors and is currently under consideration in the House Finance Committee.
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