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The legislation would require voters to approve amending the State Constitution to allow half the oil and gas severance taxes that traditionally fill the coffers of the Rainy Day Fund to be sent to the state's highway fund.
If we had implemented a moderate natural gas severance tax in line with our neighboring states such as West Virginia, we would have collected $538 million in revenue.
But to cut more, Kasich will have to convince an even bigger GOP legislative majority to approve a new oil and gas severance tax.
The state may be losing out on millions of dollars of in revenue from oil and gas severance taxes under its existing collection program, according to Louisiana Legislative Auditor Daryl Purpera's office in early December.
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Ojeda proposed paying for new infrastructure and higher pay for workers with a 2.5percentt increase in the natural gas drillers' severance tax and a 15percentt hike on gas shipped out of the state.
In any state where a severance tax is paid by gas companies on the gas they extract, any losses — as on federal lands — would represent squandered revenue for the state.
One option that other states are using is a severance tax levied on gas drillers.
With just minutes left on the clock, he began arguing with the audience about whether a severance tax on natural gas could benefit the state's economy.
The moratorium comes just days after a breakdown in negotiations between the governor and State Senate Republicans over a severance tax on natural gas production, favored by Mr. Rendell, a Democrat.
Wolf favors a 5percentt severance tax on natural gas drilling that Corbett has steadfastly opposed.
Mr. Perry also signed a bill in 2003 that made permanent (quietly, critics argue) a reduction in the severance tax paid on "high-cost gas," which includes gas retrieved through fracking.
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