Eachus: Shale tax vote soon

MARC LEVY Associated Press Writer

HARRISBURG — Pennsylvania’s House majority leader said Friday that he plans to hold a vote this week on legislation to impose a tax on natural gas extraction.

Pennsylvania is the nation’s largest natural-gas producing state that does not tax the gas extracted from its bedrock.

Rep. Todd Eachus, D-Butler Township, said he will press for a minimum tax of 39 cents per thousand cubic feet. He estimated it would collect more than $300 million in a full year — more than Gov. Ed Rendell has estimated his tax plan would collect.

Opponents have warned a tax will cause drilling companies to move elsewhere, but Eachus said that was fear-mongering designed to help the industry avoid paying its fair share.

Some representatives of the natural gas industry say they are willing to pay a tax — just not nearly as high as the one being proposed by Eachus.

Eachus said he is still developing a plan on how to distribute the revenue.

Eachus said he plans floor votes Tuesday on about 30 amendments and then a final vote Wednesday to send the bill to the Senate.

Leaders of the Republican-controlled Senate are expected to pursue a plan with a significantly lower tax rate.

The Senate GOP is advancing a proposal based on the tax rate in Arkansas: 1.5 percent of the sale value for four years, and rising to 5 percent in the fifth year and thereafter.