Ohio governor positive that his proposed severance tax will happen
Tuesday, June 9, 2015
Ohio Gov. John Kasich has tried three times to increase the state’s severance tax, and he’s been shot down all three times.
The Columbus Dispatch reports that Kasich is hopeful, though, that this time around the increase will be passed in the Senate. Next week, the Senate will reveal its budget plan.
Kasich included the severance tax proposal in his budget this year, but it was shot down by the House. The current severance tax consists of a 20 cent per barrel of oil fee and 3 cents per thousand cubic feet of natural gas fee. Kasich proposed that severance tax increase to 6.5 percent for crude oil and natural gas sold at the wellhead.
Via: The Columbus Dispatch > Kasich ‘optimistic’ he’ll finally get fracking tax increase in Ohio
More about Kasich’s severance tax proposals:
- HB 162: Natural gas severance tax proposal seeks infrastructure funding May 12, 2015
- Proposed severance tax increase removed from Ohio’s budget bill April 17, 2015
- Ohio severance tax remains an issue with industry, governor April 16, 2015
- Local Ohio leaders form coalition to fight oil and gas severance tax increase March 27, 2015
- Ohio budget: Shale gas industry may feel hit if governor’s severance tax enacted Feb. 17, 2015
- Ohio governor proposes increased fracking tax Feb. 5, 2015
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How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.