Industry Says Hiking Oil/Gas Tax Hinders State Appeal
Leaders in the Ohio House have already said they’re not interested in raising taxes on the oil and gas industry. However, Gov. John Kasich is still pushing his severance tax increase proposal. An industry leader says even proposing a hike doesn’t help Ohio.
Gov. John Kasich’s budget would raise the tax rate on oil and gas drillers to 6.5%. That’s a significant increase from the current rate of a few cents per 1,000 cubic feet.
Shawn Bennett with the Ohio Oil and Gas Association says Ohio is competing with other states to attract drillers and simply suggesting a tax increase can be detrimental.
“You have to look at where you’re getting the best return on your investment right now we have to recognize that the Utica is a shale play it is not the shale play so you can’t treat as if this is the only game in town.”
Opponents argue now is not the time to raise the severance tax, especially given the low prices on oil and gas.
Gov. John Kasich has said he’s worried that raising the severance tax will become a ballot issue if lawmakers don’t act.