New Pipeline Could Mean Tax Bonanza for NJ Towns, but for Pa.? Not So Much

  • Joe Kulick is township manager of Durham, Pa., one of 27 towns along the main route of the PennEast pipeline. Photo: Katie Colaneri/StateImpact Pennsylvania

By Katie Colaneri | StateImpact Pennsylvania

June 19, 2015

As Republican legislative leaders and the natural gas industry unite to beat back Gov. Tom Wolf’s severance tax proposal, here’s something lawmakers in Harrisburg are not talking about: Companies building new pipelines to grow markets for Pennsylvania’s natural gas don’t have to pay local property taxes on those lines to counties, towns and school districts.

So how much could local communities be missing out on?

In one case, StateImpact Pennsylvania has found that a proposed pipeline that would run beneath the Delaware River, the undulating boundary between Pennsylvania and New Jersey, could mean millions of dollars a year in new property tax revenue for towns in the Garden State. But on the other side of the river, Pennsylvania could be leaving millions of dollars a year on the table.

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