After two and a half hours of debate and several attempts to amend the bill, House Democrats failed to gather enough votes today to amend or pass House Bill 325 (Melio-D-Bucks) which would impose a new severance tax on natural gas production, on smokeless tobacco and cigars and raise the tax on cigaretts.
The bill was referred back to the House Appropriations Committee.
Rep. David Levdansky (D-Allegheny) attempted to suspend the rules to offer an amendment to provide environmental programs with more funding from the natural gas severance tax, but the effort failed by a vote of 104 to 95. Other amendments were either withdrawn or rebuffed.
The Marcellus Shale Coalition industry group issued this statement in response to the House consideration of a severance tax from Kathryn Klaber, president and executive director:
“Pennsylvanians continue to face troubling economic times, with nearly one out of every ten citizens in the Commonwealth out of work today.
“Despite this difficult climate, the environmentally-safe development of the Marcellus Shale’s natural gas resources continues to create tens of thousands of good-paying jobs at a time when they’re most needed. This responsible development is not only generating hundreds of millions of dollars in tax revenue for state and local governments, but it’s also delivering clean-burning, homegrown energy supplies to struggling families in the form of affordable natural gas for home and water heaters, as well electricity.
“We will continue to work closely with the General Assembly, the governor and his administration, as well as county and local officials, to craft commonsense solutions – especially modernizing our outdated regulatory framework – that encourage competitiveness, expanded job creation and energy security.
“Unfortunately, this enormous tax hike and misguided call for blanket moratoriums on shale gas production not only put Pennsylvania on a path to become one of the least competitive energy-producing states in the country but also threatens critical capital investments, which are essential for continued job growth. Instituting new taxes and an unnecessary moratorium will only drive away jobs – what a missed opportunity that would be.”
NewsClips:
House Yanks Vote On Marcellus Shale Tax
Disagreements Delay Proposed Marcellus Shale Gas Tax
Sen. Ferlo Wants Moratorium On Marcellus Shale Gas Drilling
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