Gov. Ed Rendell announced on Thursday that Pennsylvania’s attempts to develop a natural gas extraction tax have been shelved. Rendell began pushing for a shale-gas tax earlier this year and made specific mention of his intention in his 2010-11 state budget speech in February. But General Assembly leaders were unable to agree on key elements of the levy, including the proposed tax rate as well as how to allocate the estimated $100 million such a tax would generate.
The state’s current General Assembly session ends Nov. 30, and a new two-year session opens in January.
One of the taxes most vocal opponents is the state’s attorney general, Tom Corbett. Corbett is also the Republican nominee for governor and is running ahead of Democrat Dan Onorato. According to the Pittsburgh Post-Gazette, “… if Republican Corbett is the new governor, there may never been an extraction tax, since he strongly opposes the idea.”
Gov. Rendell is term-limited and cannot seek reelection.
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