Ohio's oil and gas industry says it supports newly introduced severance tax changes that include a rate hike on wells in a compromise struck with the Ohio House.
The industry balked at an earlier proposal by Republican Governor John Kasich to raise taxes on drillers and use the proceeds to fund an income tax cut. The compromise was authored by Republican Ohio House Speaker Bill Batchelder and Representative Matt Huffman. Huffman says the bill is carefully constructed to encourage gas exploration, environmental protection and regulatory reform. He says it would generate 1.7 billion dollars in tax money over ten years. Some of the proceed would help the state fund it’s regulatory framework, including well inspectors.
Huffman says the bill cuts the governor’s proposal by 35 percent.