Monday, April 24, 2023
With drilling set to expand in Ohio state parks, some believe Ohio’s oil and gas severance taxes are too low, according to Ohio Capital Journal.
Studies that have compared oil and gas tax rates to the volume of minerals pumped out of the ground and the value of those minerals have reported Ohio’s severance taxes among the lowest of any state.
A 2016 analysis by economists Daniel Raimi and Richard Newell compared state and local government revenue as a share of the value of oil and gas produced in the 16 largest oil-and-gas-producing states and found Ohio’s severance taxes were by far the lowest of the 16 states. The median states — Utah and Texas — were taxing oil and gas production at seven to eight times Ohio’s rate in 2013.
In light of a new bill that requires state officials to grant drilling leases on state lands, many are questioning whether these bottom-of-the-barrel tax rates need to be increased.
Farm and Dairy, a weekly newspaper located in Salem, Ohio, has been reporting on topics that interest farmers and landowners since 1914. Through the Shale Gas Reporter, we are dedicated to giving our readers unbiased and reliable information on shale gas development.
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