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Lehigh County Office
Star Plaza, Suite 302
6299 Route 309
New Tripoli, PA 18066
(610) 760-7082
M-F 9 a.m. to 4:30 p.m.

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PO Box 202187
Harrisburg, PA 17120-2187
Phone: (717) 787-3017
Fax: (717) 705-1951

Day Votes Against Highest Natural Gas Severance Tax
9/29/2010

Rep. Gary Day (R-Lehigh/Berks) today cast a dissenting vote on legislation that would impose the highest in the nation tax on natural gas drilling but supported an effort to push the proceeds of such a tax to the affected local agencies. 

 

“Jobs and the economy are rightfully the highest priorities for Pennsylvanians right now, and to impose a crushing tax that will discourage companies from creating jobs in what is the brightest economic activity in years.  It is the wrong approach to public policy,” Day said. “Although I understand a desire to enact such a levy, the hurried approach and resulting legislative product was too much to even consider. The bill that passed today out of the House had a considerable number of flaws, especially in regards to how the money is being allocated.”

 

According to Senate Bill 1155, which passed the House today, a record 9.6 percent tax – or 39 cents per thousand cubic feet extracted from the well head – would be imposed. This level is the highest among shale-producing states in the nation, and will be funneled to Harrisburg to satisfy their addiction to spending.

 

In addition, drilling companies already pay the state’s numerous businesses taxes, some of which are also among the highest in the country. Estimates report that drilling companies have already paid more than $389 million in state and local taxes in 2009, and that amount is expected to be nearly $800 million in 2010.

 

“Although I’m concerned with the level of taxation and that was the reason for my ‘no’ vote, I was pleased to support an amendment that shifted proceeds away from the Harrisburg politicians addicted to spending,” Day said. “I think the rate is too high and the proceeds should serve citizens of the Commonwealth in the hands of the agencies which have to regulate and protect us from any negative impact of extraction activity.” 

 

The legislation now heads to the state Senate for its consideration.

 

Rep. Gary Day

187th District

Pennsylvania House of Representatives

(717) 787-3017

(610) 760-7082

Contact:  Jennifer Algoe Keaton

jkeaton@pahousegop.com

(717) 705-2094

Member Site: RepGaryDay.com

Caucus Site:  PAHouseGOP.com

 

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