News
News Home
Quick Bites
Exploradio
News Archive
News Channel
Special Features
NPR
nowplaying
On AirNewsClassical
Loading...
  
School Closings
WKSU Support
Funding for WKSU is made possible in part through support from the following businesses and organizations.

Akron General

The Holden Arboretum

Knight Foundation


For more information on how your company or organization can support WKSU, download the WKSU Media Kit.

(WKSU Media Kit PDF icon )


Donate Your Vehicle to WKSU

Programs Schedule Make A Pledge Member BenefitsFAQ/HelpContact Us
Economy and Business


Ohio state representative proposes a higher drilling tax
Republicans will likely oppose the 7.5 percent tax on oil and gas drillers
by WKSU's STATEHOUSE BUREAU CHIEF KAREN KASLER


Reporter
Karen Kasler
 
Gov. Kasich has been pushing for a fracking tax for two years, but GOP lawmakers keep blocking it.
Courtesy of TIM RUDELL
Download (WKSU Only)
In The Region:

A few months after Gov. John Kasich proposed a tax on oil and natural gas drillers, a Democratic lawmaker from Youngstown has done the same thing. While it is a different approach, it is likely to suffer the same fate.

LISTEN: KASLER ON DRILL TAX

Other options:
Windows Media / MP3 Download (2:46)


LISTEN: Abbreviate, KASLER ON DRILL TAX

Other options:
Windows Media / MP3 Download (0:53)


Democratic Rep. Bob Hagan of Youngstown has long been a critic of fracking. But since it is happening in his district, he says, the state should capitalize on it. He has proposed a 7.5 percent tax on horizontal drilling, with the proceeds going mostly to counties affected by the drilling boom. He wants the money to hire more well inspectors and to go for conservation.

Taxing like the big states
But Hagan also wants to create a fund that he says would be managed by a panel of professionals and cannot be touched by lawmakers until 2020, after which a portion can be used for economic development, education or other purposes.

"By designating a small percentage of severance tax revenue for a permanent trust fund, Ohio can create an economic legacy from our natural resources and provide funds critical of the survival of our state’s economy long after our non-renewable resources are depleted,” Hagan says.

Hagan says a 7.5 percent tax would bring Ohio in line with big drilling states such as Texas, Oklahoma and North Dakota, which he says have severance taxes ranging from 7 percent to 11.5 percent.

Bad for business
But it’s unlikely Hagan’s bill will go far. Republican Gov. John Kasich proposed a 4 percent severance tax only on big drillers and it was stripped Ohio Speaker of the House Bill Batchelder says the tax could drive away businesses.from both the House and Senate versions of the budget. Back in March, at a conference for Ohio’s oil and gas industry, House Speaker Bill Batchelder explained Republicans’ opposition to the tax.

“We certainly don’t want to discourage people from coming here," Batchelder says. "Let’s do everything we can to encourage people to come create jobs. And if we do that, then I think we’re going to have a source of taxation at some point down the road that would be very helpful. But not now, I don’t think.”

Hagan says that's bad for Ohio
But Hagan says Ohio is losing billions of dollars that the state should be getting by right.

“The growing industry has to give us also the benefits, particularly in our state," Hagan says. "And it’s troubling to me to say that we’re standing in the way of a multi-billion dollar industry that has, up to this point, made multi-billion dollars at their benefit and not to ours.”

Part of Hagan’s bill echoes a recent attempt by Gov. Kasich to get his severance plan started again. Last week, Kasich had talked about dedicating a quarter of severance tax revenue for the counties where drillers are operating, since many of those counties had been apprehensive about supporting his tax plan.

(Click image for larger view.)

Add Your Comment
Name:

Location:

E-mail: (not published, only used to contact you about your comment)


Comments:




 
Page Options

Print this page

E-Mail this page / Send mp3

Share on Facebook




Stories with Recent Comments

Portman predicts McDonald's confirmation, but says it won't be easy
I sent the following note to Senator Blumenthal after reading commentary from yesterday's hearing: Senator, You certainly have the right to ask Mr. McDonald que...

Seven minutes changed everything, but what changed Ashford Thompson?
He shot the guy four times in the head. I have never been that drunk or mad, and I have been through it. Shoot a guy once is bad, maybe a mistake, shoot a guy f...

First cricket farm in the U.S. opens in Youngstown
I am interested in cricket flour to replace soy flour in a low carbohydrate diet. As soon as you have cricket flour available for the average person, please le...

New process starts digesting sludge in Wooster
Awesome! When do our sewage rates decrease accordingly?

Akron's Chapel Hill Mall in foreclosure
Not a surprise. Between the shoplifting, gangs and violence that goes on up there it is no wonder that no one feels safe to shop at Chapel Hill. They have sca...

Ohio launches investigation into at least one Concept charter school
I worked at Noble Academy Cleveland as admin assistant and enrolment coordinator for 6 years, I know this is so valid and true and can provide staff names and p...

Crisis looms in filling aviation industry jobs in Ohio and the nation
I listened to this story yesterday morning on the radio and just want to add this comment. My son went to school to train as an air traffic controller, and gra...

Cuyahoga Valley National Park considers fire to fight invasives
I'm for the controlled burn. There are not enough people (myself included) who volunteer for the removal of invasive plant species. Therefore, another solution ...

Copyright © 2014 WKSU Public Radio, All Rights Reserved.

 
In Partnership With:

NPR PRI Kent State University

listen in windows media format listen in realplayer format Car Talk Hosts: Tom & Ray Magliozzi Fresh Air Host: Terry Gross A Service of Kent State University 89.7 WKSU | NPR.Classical.Other smart stuff. NPR Senior Correspondent: Noah Adams Living on Earth Host: Steve Curwood 89.7 WKSU | NPR.Classical.Other smart stuff. A Service of Kent State University