Natural-gas tax bill off House floor

June 16, 2010 at 12:00a.m.

Associated Press

HARRISBURG

Pennsylvania Democrats abruptly yanked a bill to tax natural- gas extraction and tobacco products from the Pennsylvania House floor Tuesday after a spirited debate that exposed internal divisions over what would constitute an integral piece of the state-budget puzzle.

The setback for House Democratic leaders concerned their proposal to raise $142 million from Marcellus shale natural-gas drilling and use 80 percent of it for the state’s general fund.

The $320 million bill, sponsored by Appropriations Committee Chairman Dwight Evans, D-Philadelphia, also would add a dime to the cigarette tax, bring in $49 million that goes to vendors who file sales tax returns on time and impose new taxes on cigars and smokeless tobacco.

Democrats were clearly split on how much of the natural-gas tax should go to local governments, environmental causes and other recipients, while Republicans were roundly critical of the overall concept.

“This is an anti-growth tax, it’s an anti-jobs tax, it’s an anti-manufacturing tax,” said Minority Whip Mike Turzai, R-Allegheny. “And it is an anti-energy- independence tax.”

Rep. Daryl Metcalfe, R-Butler, said voters want to see taxes cut, not increased.

Democratic and Republican leaders in the House and Senate were scheduled to meet regarding the budget early today.