Politics & Government

Natural Gas Drilling Tax on State Rep. Murt's To-Do List

Murt, of Upper Moreland, is holding a press conference this morning in Harrisburg to urge support of his legislation, which calls for a 4.9 percent levy on natural gas drilling.

Generating enough support for a bill that would levy additional taxes on the state’s natural gas industry tops the agenda for State Rep. Tom Murt’s fall session.

Murt (R-152) is spearheading a proposal to implement a drilling tax in Pennsylvania, which calls for natural gas drillers to be taxed at a rate of 4.9 percent. The measure, which he said is receiving bi-partisan support, is estimated to generate $362 million during the 2012-2013 fiscal year and rise to $562 million annually within five years.

“There really is an abundance of natural gas and the drilling is going to continue for many, many years,” Murt said. “We really believe they should be paying their fair share.”

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Murt’s sentiment is Murt, who represents portions of Hatboro and Horsham, as well as Upper Moreland, Lower Moreland, Bryn Athyn, part of Upper Dublin and part of Philadelphia, said West Virginia’s tax on natural gas drillers is higher than the rate he is proposing and the industry there is still “thriving.”

Tom Murphy, co-director of the Penn State Marcellus Center for Outreach and Research, estimated up to 30,000 direct jobs will be created in the next two years because of the Marcellus Shale gas industry.

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"Although there are many aspects of economic impacts associated with Marcellus development, the increase in jobs being produced in Pennsylvania is undeniable," Murphy said last week during a public hearing among state legislators.

Shale gas accounted for less than 4 percent of the country's natural gas three years ago, Murphy said; today, that share is 30 percent and climbing.

And while lawmakers seem to agree that what amounts to an additional tax for natural gas drilling is necessary, others, including environmentalists, worry that not enough protective measures have been put in place. So, the “battle,” State Rep. Todd Stephens (R-151) of Horsham, said, is determining where the additional revenue will go. Some are suggesting that the bulk of the funding be divvied up among communities most impacted.

“If there’s a problem, we’re going to be feeling the effects downstream,” Stephens said, adding that natural gas drilling regulations should be strengthened and stricter environmental standards should be put in place. “It’s vital for Pennsylvania’s future to make sure we’re doing this carefully.”

In a press conference set for 10 a.m. today, Murt and bill co-sponsor Gene DiGirolamo (R-Bucks) are expected to urge movement on the legislation, which Murt said has so far generated a “groundswell of support.”

Besides the “lion’s share” funding environmental initiatives, Murt said the natural gas tax would be used to support funding for adults with special needs and those in need of drug and alcohol rehabilitation.

Other items on Murt’s legislative agenda

An Iraq War veteran, Murt said he is also seeking money for disabled veterans to receive post-traumatic stress disorder treatment, as well as for traumatic brain injuries. Murt said he is seeking out opportunities for educational benefits and housing and is working to ensure that veterans receive special job privileges.

“Some of the veterans have not been given special veterans preferences with jobs,” Murt said.

In addition to working to help and protect veterans, Murt said he is pushing forward with his , which would add greater oversight of the entertainment industry as it relates to child actors.

Offering additional assistance to families of adults with special needs is another issue of importance to Murt. He said he’s heard of situations where 85-year-old parents are forced to care for their grown children, who are afflicted with intellectual disabilities.

And, even with as “austere” as the budget was in June, Murt said, “we did get a bump for adults with special needs.”


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