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Environment


Kasich asks for oil and gas severance tax that's good for taxpayers
Says it must be like porridge: 'Can’t be too cold and it can’t be too hot. It’s got to be just right'
by WKSU's STATEHOUSE CORRESPONDENT JO INGLES


Reporter
Jo Ingles
 
Although Governor Kasich proposed a significant severance tax last year as part of his budget plan, lawmakers excluded it from the new two-year state budget.
Courtesy of Governor of Ohio
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Gov. John Kasich wants state lawmakers to come up with a tax on oil and gas producers that he feels is good for taxpayers. Ohio Public Radio’s Jo Ingles reports.
Kasich asks for oil and gas severance tax that's good for taxpayers

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Kasich proposed a significant severance tax last year as part of his budget plan but in the end, lawmakers excluded it from the new two-year state budget. Now, they’re considering again and Kasich is telling reporters at an AP conference that the proposal has to be good for the state.

“We don’t want to do something that doesn’t mean the taxpayers of this state get some fair value for their resources that are being depleted. On the other hand, we don’t want to have a severance tax that drives people out because this industry is critical to the state. So it’s kind of like porridge. It can’t be too cold and it can’t be too hot. It’s got to be just right.”

The Ohio House is considering a severance tax plan that would generate $1.7 billion in net new revenue over the course of a decade. Kasich says he’ll take a look at what eventually gets passed by lawmakers to decide if it’s just right.
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