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Thursday, January 5, 2017

Kasich Vetoes Legislation Expanding Tax Exemption for Oil and Gas Drillers

From NGI:
Ohio Gov. John Kasich on Tuesday vetoed legislation that would have expanded a sales tax exemption for oil and natural gas producers, saying it would have cost the state too much and unfairly favored the industry. 
Using his line-item veto power, the Republican governor struck down the provision in SB 235, lame-duck legislation that also changes unemployment compensation law, among other things. The veto stops the Republican-controlled legislature's efforts to expand a sales tax exemption on equipment used "directly" in producing oil and gas to cover all production-related purchases. 
"The exemption in this item goes well beyond the direct use exemption for exploration and production and would result in a situation where oil and gas companies would be exempt from sales tax on almost everything they purchase," Kasich said in his veto message. "This new, broadened exemption from the sales tax would create future annual revenue losses to the state, counties and transit authorities in the tens of millions of dollars."
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