Opposition Growing to Ohio Governor's Proposed Severance Tax Increase
Tags: Ohio, Utica Shale
Governor John Kasich recently proposed an increase in the severance tax rates on the production of oil and gas to 4% for oil and natural gas liquids and 1% for gas. This is up from the current rates of 20 cents per barrel of oil and 3 cents per 1,000 cubic feet of natural gas with no tax on natural-gas liquids. The proposal has sparked a debate in the Ohio legislature. State Treasurer Josh Mandel and Ohio House Speaker William Batchelder have publically opposed the severance tax increase. Batchelder decried the severance tax increase calling it “nonsense” and suggested that it will fail to be put in to law.