Ohio groups call for 5 percent tax on oil, gas production
Posted September 30, 2015 in Press Releases
Fracking companies should pay their fair share to cover mounting public costs of Ohio's shale drilling boom.
For immediate release
Contact: Wendy Patton, 614.221.4505
or Jack Shaner, 614.487.5822
Ohio’s effective tax rate on oil and gas is less than a half-percent, far behind most other oil and gas producing states. The current tax is inadequate to compensate for increased road maintenance, new demands for emergency services, escalating housing costs, greater need for regulatory oversight and negative effects on air and water quality.
New tax revenue also would provide long-term funds for local communities that face economic ramifications of boom and bust cycles typical of the industry, according to the recommendation by Policy Matters Ohio, Ohio Environmental Council, One Ohio Now, Ohio Organizing Collaborative, Ohio Communities United for Responsible Energy and the Ohio Public Health Association.
“Ohio's fracking boom means we have to be extra vigilant about demanding clean water, safe roads and more,” said Gavin DeVore Leonard, state director of One Ohio Now. “What's happening now simply is not sustainable. Oil and gas companies are part of our communities. They need to pay their fair share so important investments can be made for today and tomorrow.”
A state legislative commission created under the 2015 budget bill is reviewing the severance tax issue, and was directed by the Ohio General Assembly to make recommendations by Oct. 1. But its findings have been delayed.
The impact of heavy shale gas and oil production on communities has come into focus in recent years. A December study by the Multi-State Shale Collaborative