Now that the drilling industry is heavily invested in Ohio, Democrat (and yes, even Republican) lawmakers in Ohio think they have the industry by the short hairs and they can safely raise taxes on the industry–dramatically. The thinking goes, as expressed by an Ohio Democrat lawmaker, that because of the big-time investment by industry in the state they won’t leave the state if lawmakers now raise taxes on them. It’s a pretty big gamble to take.
As MDN has written, even the Ohio Oil & Gas Association (OOGA) is now backing the Utica Shale tax increase, although the Ohio Petroleum Council (OPC) has not yet signed on for higher Utica Shale taxes (see The Secret Back Room Deal to Raise OH’s Utica Shale Tax). What, exactly, is being proposed? Let’s analyze this tax and our objections to it…
