Ohio Utica Shale Drillers Pay Millions of Dollars in Property Taxes

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Hiking the severance tax is not only an anal fixation by Democrat governors, like PA Gov. Tom Wolf (see PA Gov Wolf’s New Budget Calls for 6.5% Severance Tax (Again)), it’s also a fixation for RINO (Republican) governors, like OH Gov. John Kasich (see OH Gov. Kasich Recycles Proposal to Increase Utica Severance Tax). Yet in both states drillers already pay more than their fair share of state and local taxes. In PA it’s called an impact fee (i.e. tax), and in OH it’s called a severance tax PLUS an ad valorem, or property tax. In OH, the ad valoreum tax is raising millions of dollars in counties with active Utica drilling. According to a new report from the Ohio Oil & Gas Association and Energy in Depth, from 2010-2015, the ad valorem tax in OH’s top 6 Utica Shale producing counties raised a total of $43.7 million! Over the next 10 years (2016-2026), the report finds OH counties will get $200-$250 million in new tax revenue from ad valorem taxes. And yet Gov. Kasich insists drillers aren’t paying their fair share. What a sham! The report, titled “The Utica Shale Local Support Series: Ohio’s Oil and Gas Industry Property Tax Payments” (full copy below) is chock full of great news for OH counties…

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