Natural gas companies pay five times more in state and local taxes on a per-job basis than the average company. Those local taxes help fund vital education, health care and public safety services in our communities.
Every Texan benefits from these revenues in some way – whether it’s funding school districts to help keep teachers and students in the classroom, ensuring hospital and emergency room services are accessible, providing for disaster recovery programs, or contributing to the Rainy Day Fund which covers state budget shortfalls in times of economic downturn.
In fact, local taxes, contributed to by the natural gas industry, are the primary source of revenue for most school districts. About 75 percent of the total independent school districts in Texas each receive an average of $1.35 million per year in ad valorem revenues from the production of natural gas. (Find more data at Texas Budget Source.)
Source: Texas Comptroller's Office
New wealth from natural gas is transforming many Texas communities. Just one example is the ranching town of Cotulla in South Texas. The San Antonio Express-News reported city sales tax collections are up 20 percent in a year from the Eagle Ford Shale. City officials are able to begin to address needed capital investments in roads, bridges and county salaries. And the only bank in town, Stockmens National, reports deposits have increased 40 percent since last fall. The Gonzales Cannon published an article speculating that the Eagle Ford Shale could pump $67 million dollars into their county alone.
Clearly, the economic benefits of natural gas are dramatically changing the lives of community residents. Learn about how natural gas production translates into Consumer Savings.