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Ohio Governor proposes increased fracking tax

Thursday, February 5, 2015 by

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Ohio Governor John Kasich tried to raise the tax rate on fracking in 2014, and now he’s proposed another such plan, The Plain Dealer reports.

Kasich’s plan calls for Ohio’s horizontal drillers to pay a 6.5 percent severance tax for crude oil and natural gas sold at the source. As of now, oil is charged 20 cents per barrel. The current tax on natural gas is 3 cents per thousand cubic feet. Conventional drillers would pay the current rate on oil and natural gas.

This tax money would help to cover proposed business and personal income tax cuts. It would bring in an estimated $260 million over the next two years. Twenty percent of the revenue from the severance tax would go to local governments in the Utica and Marcellus Shale plays in the eastern part of the state.

Related: Pennsylvania lawmakers propose natural gas extraction tax

Via: The Plain Dealer > Ohio’s fracking tax would jump significantly under Gov. John Kasich’s budget plan

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