Proposed severance tax increase removed from Ohio’s budget bill
Friday, April 17, 2015
On April 14, Ohio lawmakers got rid of Gov. John Kasich’s budget proposal that included an increase in the state severance tax on horizontal drilling, The Plain Dealer reports. The increased severance tax was intended to compensate for income-tax cuts.
Oil and gas industry representatives had voiced concerns about the increased severance tax, which would have taxed oil and gas sold at the head by 6.5 percent. Currently, oil per barrel has a 20 cent tax and natural gas is taxed 3 cents per thousand cubic feet.
According to Kasich’s plan, 80 percent of the money from the severance tax would be used for income-tax cuts. Twenty percent of the money would go to the eastern Ohio governments where the bulk of the state’s drilling is taking place.
Via: The Plain Dealer > Oil and gas tax hike in Ohio is dead for now, lawmaker says
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