Ohio House Considers Proposal for New Increased Severance Tax
From The Gateway News:
Columbus -- The Ohio House began deliberations Dec. 10 on legislation to revamp taxes charged on oil and gas produced in eastern Ohio's emerging shale oilfields.
House Bill 375 calls for lower taxes on existing conventional wells and increasing rates on those drilled horizontally, with excess proceeds devoted to plugging abandoned wells and potentially cutting income tax rates.
"I believe this comprehensive tax reform proposal is a fair and balanced approach that will provide oil and gas producers with more certainty," Rep. Matt Huffman (R-Lima) told members of the House Ways and Means Committee. "Certainty is an important factor to companies when weighing their tax burden and deciding whether or not to invest billions into energy exploration and development within our state."
He added, "Taxpayers, of course, will benefit from this proposal as the creation of two new offsets will impact royalty owners while additional revenues are earmarked for a reduction of the personal income tax."