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Government and Politics

Oil and gas drillers once again protest Kasich's tax hike
They say it is too much; Kasich says industry-backed plans are too little

Andy Chow
Courtesy of FILE PHOTO
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In The Region:
Gov. John Kasich has once again riled up the oil and gas industry over his proposed increase in the severance tax. Kasich and GOP legislative leaders have been arguing for three years over hiking the state’s tax on oil and gas extraction.

Studies say the state’s current rate ranges from a half-a-percent to .08 percent.The governor wants to boost that more than three-fold, to 2.75 percent. He’d direct a fifth of the money back to local governments in the shale regions of Ohio.

 Chris Zeigler with the American Petroleum Institute of Ohio says the industry is ready to work with the governor to help modernize the tax, but his proposal is too high. Zeigler says it’s especially crushing when added to a planned increase to the Commercial Activity Tax.
LISTEN: Industry says the tax will drive drillers away

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“Overall, I think the plan that was released in the MBR is unworkable with regard to encouraging further development of Ohio’s shale resources here in Ohio. It has a rate of 2.75 but in addition to an increase in the CAT—our members who would be operating in Ohio would be paying 10 times the amount of tax on gross receipts compared to any other industry in Ohio. Again it’s simply unworkable.”
Kasich wants to boost the Commercial Activity Tax from 0.26 percent to 0.3 percent.
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