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.

Meaden & Moore

Wayside Furniture

Akron General


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
Government and Politics


Bill could increase severance tax on Ohio gas and oil
Republican State Rep. says bill would generate $1.7 billion over 10 years
by WKSU's ANDY CHOW


Reporter
Andy Chow
 
In The Region:
State leaders are once again considering an increased tax on the oil and gas industry as shale gas development continues to grow. Only this time -- as Statehouse correspondent Andy Chow reports -- the industry supports the effort.
Bill could increase severance tax on Ohio gas and oil

Other options:
Windows Media / MP3 Download (3:05)


There’s a renewed attempt to capitalize on the shale gas boom in Ohio with a bill that would increase the severance tax on the oil and gas industry.

Republican Representative Matt Huffman says his bill would generate about $1.7 billion in net new revenue over the course of ten years.

That money would do three things. First, it would help the state fund its regulatory framework, including well inspectors. It would also be used to close up old, abandoned wells while the rest of the money would go towards the Income Tax Reduction Fund.

"And that way taxpayers all over the state—not just in the oil producing counties or shale counties—but all of the taxpayers in the state of Ohio will be able to benefit from this new tax that the oil industry is paying.”

The bill would also create exemptions and tax credits for certain drilling operations and landowners.

Gov. John Kasich proposed an increased severance tax in his budget earlier this year, which was pulled by Republican lawmakers. Huffman says his legislation trims the governor’s proposal.

“This is about 65 percent of what the governor’s proposal is so it’s more than half—if we’re looking for a compromise—it’s closer to the governor’s proposal than zero.”

A big reason Kasich’s effort failed earlier this year was the staunch opposition from the oil and gas industry. However, the Ohio Oil and Gas Association has announced its support for the latest attempt to raise the severance tax, calling it a “sensible modification.”

Huffman says his plan to increase the state’s regulatory staff helped convince the industry.

"Of course that’s one of the reasons the oil and gas—they like that part of it because it’s like—‘hey if we stand here and wait for 100 days waiting for the inspector to show up, you know I’ve got guys standing around doing nothing, that costs us money. So we want that money to happen.’”

Democratic Representative Debbie Phillips represents the Athens area which is not at the heart of the shale gas boom but is seeing its impact through things like injection wells.

Phillips is glad the severance tax bill has been introduced but hopes it spurs a deeper discussion into what that money could be used for.

"There are other impacts in additional communities so there’s more traffic congestion, there are public safety concerns, there are needs in the schools because of the influx of people coming into the areas—I would just like to see some portion of that money invested into those communities.”

Phillips says shale gas could become the next so-called “boom and bust” cycle where an industry comes in, takes out the natural resources, and leaves. And Phillips says there have been other regions that have managed to implement measures so communities could benefit long after the industries leave.

“They have more jobs now than they did at the height of the resource boom because they were very forward-looking in investing the money coming into the region during the boom.”

House Speaker Bill Batchelder is one of 18 co-sponsors of the bill so far. Huffman hopes to have a hearing before the holiday break then make a big push after the New Year.
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

What's it take to take control of cancer?
In the case of bowel/colorectal cancer, the surest method of prevention is to have a colonoscopy, during which pre-cancerous "polyps" are removed - https://t.co...

Western Stark Free Clinic is set to close but to continue its role
WHAT OTHER DENTAL CLINICS AND MEDICAL CLINICS ARE IN THE CANTON AND MASSILLON, OHIO AREAS?

Three exonerated of murder convictions from 18 years ago
Thanks heavens that none of them have been condemned to death. This alons should convince the USA to join the civilized world by abolishing the death penalty. E...

Kombucha: a sweet business brewed with fermented tea
Stevia is not an artificial sweetener. It is a plant. I have one growing in my sunroom. The leaves are dried and added to teas. It's harvested commercially and...

Bringing back ballet in Cleveland
I do think Ballet in Cleveland is doing good things, but the fact that director says "When we have flourishing companies like the New York City Ballet and the A...

Report confirms some Vietnam veterans may have been exposed to Agent Orange
was in nam 1969 exposed va stated lost medical records was in lawsuit from 197? till settled 0 $ 2010 ? said all nam vets will get back disability till 198? jus...

Mentorship grant program redefines "faith-based" provision
Can't anyone have values, beliefs, and morals anymore? How is it anymore unconstitutional for a school partner with a "faith-based" organization than any other ...

Exploradio: The challenge of finding a healthy balance with technology
Thank you, Jeff, for another well done Exploradio. I always learn something interesting about what is happening in NE Ohio.

Northeast Ohio's transgender community rallies around restroom issue
A good first step would be for Cleveland to require restaurants to have a public restroom. Cleveland is the only city I've ever been in where restaurants somet...

Copyright © 2015 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