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Article: Nelson officially files measure to increase severance tax.
- Article from:
- Arkansas Business
- Article date:
- January 21, 2008
- Author:
CopyrightCOPYRIGHT 2008 Journal Publishing, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A PUSH LED BY FORMER NATURAL gas company executive Sheffield Nelson to raise the state s miniscule severance tax on natural gas is officially under way.
Nelson submitted a proposal to Arkansas Attorney General Dustin McDaniel on Thursday to raise the state's severance tax, which is the nation's lowest at three-tenths of a cent per 1,000 cubic feet (mcf), to 7 percent of market value at the time of extraction.
Nelson said he and Gov. Mike Beebe, who has not officially endorsed the plan, have essentially come to a compromise on how the increased tax revenue would be spent. Fifty-six percent of the generated tax will be allocated to the state Highway & ...