Severance tax compromise bill introduced

http://citizensvoice.com/news/severance-tax-compromise-bill-introduced-1.1193680#axzz1W8W33D4G
Published: August 26, 2011

State Rep. Eddie Day Pashinski, D-Wilkes-Barre, has introduced a bill he believes is a compromise on a Marcellus Shale natural gas severance tax.

Pashinski’s House Bill 1804, which has been referred to the House Environmental Resources and Energy Committee, calls for a competitive severance tax on natural gas extracted from the Marcellus Shale.

The tax revenue would be kept in a restricted account until state lawmakers agree on a formula for distribution.

Pashinski said the issue is a matter of fairness because Pennsylvania is the only major natural-gas-producing state without a severance tax.

“The time for action has come,” Pashinski said. “This is a commonsense approach that is fair to the drillers and the public. The taxpayers would stop losing hundreds of millions of dollars as the debate over how to use the money is resolved.”

Pashinski stated that the public and drillers support a severance tax. A recent poll found seven in 10 people want a drilling tax, and an executive with Chief Oil and Gas, a leading driller in the state, said at a House Democratic policy hearing Pashinski hosted that the company has no problem with a reasonable tax.

“Other businesses pay their taxes and residents are facing property tax hikes and higher costs for food, necessities and even college tuition,” Pashinski stated. “At the same time, companies drilling for natural gas are enjoying tremendous profits without paying their fair share.”