OIL COMPANIES APPARENTLY WIN AGAIN
Marc Summers
03-27-2008
On Wednesday, the House Government Appropriations Committee killed Governor Bob Rileys proposed Oil and Gas Severance Tax Increase legislation, turning down the bill which Riley had hoped would change the method of calculating what oil and gas producers would owe the state, for drilling in the Gulf of Mexico.
Riley had proposed changing the rates from a value base to a volume base, doubling the states take.
Representative John Knight of Montgomery, the Chairman of the House Committee, called the defeat of the bill, which would have increased tax revenues for the General Fund from about $40 million to $80 million, a defeat for the General Fund, promising to introduce another revenue bill to replace the bill on Tuesday.
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