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Sen. Baker: Reasonable Severance Tax Is Inevitable
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In light of the failure to act on a Marcellus Shale natural gas severance tax, Sen. Lisa Baker (R-Luzerne) sent this email to constituents supporting passage of the tax-- "Many of you have shared your strong concerns about the lack of a severance tax in Pennsylvania. As you have indicated, there are some very good reasons for enacting a well-crafted severance tax.
"Without question, the sentiment in our area strongly favors a severance tax. The same is not true of every part of the state, according to both independent polls and reports from legislators representing those areas, which is one of the complicating factors in this debate.
"I publicly stated my intention to support a severance tax that meets several key tests. The tax rate and the structure of the tax cannot be so high and punitive that we negatively impact the jobs and revenue to be generated through the drilling activity. The bulk of the money needs to be devoted to environmental and community protection programs, rather than being pumped into the state budget to continue an unsustainable level of state spending.
"The package cannot contain concessions such as “forced pooling” that would override individual rights. And it serves no good purpose to have legislation structured in a constitutionally-suspect way so that it is an easy target for the inevitable lawsuits.
"Unfortunately, the bill approved by the House of Representatives failed a number of those tests, resulting in the continuing disagreements that have left the issue unresolved.
"It would be preferable to have a tax in place by the end of the year. But in the absence of an agreement that has the support of a majority of legislators, plus the governor, it seems unlikely to happen in the next few weeks.
"My belief is that a severance tax is inevitable. The outstanding question is when broad agreement can be reached on a version that will be successfully turned into law.
"Your input on this important issue is greatly appreciated."
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10/25/2010 |
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