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House Democrats Again Fail To Round Up Votes For Natural Gas Severance Tax Bill

Senate Majority Leader Dominic Pileggi (R-Delaware) said this week Senate Republicans would take a serious look at any tax bill sent to them by the House. Apparently that's a safe bet at the moment because House Democrats again failed to come up with enough votes to pass a modest tax bill again this week.

            House Bill 325 (Sponsor Withdrew) would enact an 8 percent natural gas production severance tax and increasing taxes on tobacco.  It was referred back to the House Appropriations Committee early in the week and amended to include a tax on cigars, provide a discount for paying Sales Taxes on time for the first $500,000 of business income and reduced the tax on cigarette tax by 10 cents and the natural gas severance tax, slightly.
            But even that version was not ready for prime time because the bill was left in Committee and not brought out to the House Floor for a vote.
            Gov. Rendell alternated between being optimistic about having the budget done on time and comments suggesting lawmakers "man up" and get the budget done.
            In response to a comment by Senate President Pro Tem (and Lt. Governor) Joe Scarnati (R-Jefferson) saying a Marcellus Shale natural gas production severance tax was not in the works for this budget year because there were lots of issues to work out,  Gov. Rendell said "it is going to be a long summer" if that's the case.   Sen. Scarnati did say a severance tax was "inevitable."
            "Borrowing" Environmental Funds
            There continue to be suggestions from the House Democratic Leadership and the Rendell Administration about shifting monies from a variety of state environmental funds to the General Fund. 
            While no specific list of sources has been mentioned, the Recycling Fund, the Underground Storage Tank Indemnification (cleanup) Fund, the Environmental Stewardship (Growing Greener) Fund, Oil and Gas Fund and the Keystone Parks, Recreation and Conservation Fund have all been used in the past eight years to balance the budget.
            Gov. Rendell has said he wants $175 million to come from such fund transfers.
            NewsClips: State Drilling Tax Unlikely In 2011, Scarnati Says
                                Man Up, Rendell Tells State Lawmakers
                                Did State Learn From 2009 Budget Debacle?
                                Lawmakers Start Budget Season
                                Severance Tax Backers Put On Another Push
                                Natural Gas Tax Now Likely
                                Evans Sees Room For Compromise On State's Natural Gas Tax
                                PA Officials Move To Regulate Drilling Wastewater, Impose Tax
                                Penn State Cuts College Of Agriculture Jobs
                                Union Members Rally For Taxes On Natural Gas, Smokeless Tobacco
                                Editorial: Start A Collection For Lifeguards At State Parks

                                Editorial: Film Tax Credit, Cut!
                                Editorial: Here We Go Again, State Budget Escapades

 


6/14/2010

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