Fracking Has Nothing To Do With EIT, Not Even If Both Involve Townships

Bernie points out an interesting development in the fracking fight, as Commonwealth Court Judge Keith Quigley granted an injunction against the new state law that bans municipalities from regulating the gas companies. The case was brought by seven municipalities. I think it's a great decision.

Unfortunately, after this, Bernie goes off the rails:

Now Judge Quigley did not grant total relief. It's just a 120-day stay. But if you're a NIZ sympathizers making the analogous argument that Townships have no say in a state change to their EIT collection, maybe it's time to think again.

Uh, no, it's not.

There's a fundamental difference here. The Judge granted an injunction against a state law that takes away the already granted right of municipalities to pass zoning laws. The state argued:

Senior Deputy Attorney General Howard Hopkirk argued that the state created the municipal planning code, and municipalities have no right or standing to complain about perceived harm to its residents if the state pre-empts parts of it. 

The state tried to pre-empt their own law here, not change it. They didn't change the state municipal planning code laws, they just tried to create an exemption. Even so here, this judge granted an injunction, they didn't knock down the statute. I'm not sure how this particular case ends up, but this ruling meant nothing.

The main difference on the NIZ is that the state never granted municipalities any kind of right of self-governance on the EIT. The rates are set by the state, and aren't really up for discussion with municipalities. I suppose municipalities can say they have a choice to collect it or not, but I don't think that stands up.

Another point here: the legislature did, technically speaking, actually change their law, not pre-empt it, on the NIZ. They changed the actual fiscal code. Had the state done this with the municipal planning code, their case would have been better. They just tried to create a law carving out an exemption, instead of a real change here.