Posted on 01/31/2012 1:15:14 PM PST by Dysart
The first time he was asked about a proposed increase in the severance tax on natural gas, Gov. Mike Beebe was lukewarm in his support. Last October, he said he probably would vote for it, but not campaign for it. His temperature on the idea is cooling — with good reason.
The governor sees potential new natural gas exploration in southern Arkansas on the horizon and doesn't want to scare away investments that just as easily could go to other states.
Arkansas' best interest is always on Beebe's mind. That has made him an even better governor than most people expected — and expectations were quite high given his record of leadership as a longtime state senator.
Sheffield Nelson, a twice-failed gubernatorial hopeful and one-time gas company executive, wants to up the severance tax that he says producers can afford. That's a subjective view, of course. To make his position more attractive, Nelson's proposal would direct revenues from the tax hike to state and local roads. Nobody is against better roads.
Nelson's initiative to raise the tax from 5 percent to 7 percent and exclude exemptions would raise an estimated $250 million annually — his numbers.
Plan supporters still have to find 62,507 voters to sign petitions by July 6 to get the measure on the ballot in November.
Several companies have shown interest in exploring an area known as the Smackover Brown Dense oil formation that extends from southern Arkansas to northern Louisiana. One company — Houston-based Southwestern Energy — is expected to announce soon its test results in the shale play.
Nelson and supporters say Arkansas simply will catch up to severance tax rates in other states.
(Excerpt) Read more at washingtonexaminer.com ...
Sheffield Nelson is a Republican who wants to raise the severance tax on gas producers with prices and production incentives both falling. Brilliant. It’s for the “roads,” dontcha know.
same old, same old
The urge to save humanity [and roads] is almost always only a false-face for the urge to rule it.
Severance tax increase proposal just went down in flames.
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