The report found that the oil and gas industry paid $43.7 million in direct property taxes on oil and gas wells from 2010 to 2015, and that projects out to an expected $200 to $250 million between 2016 and 2026. The report also points out that this direct tax is just one very direct way that the industry contributes to its communities. Oil and gas companies also pay in other less direct ways: road use maintenance agreement costs, sales taxes, commercial activity taxes, severance taxes, income taxes, fuel use taxes, and more.
Though Gov. John Kaisich (R) is seeking to increase severance taxes, the Ohio oil and gas industry has not faced increased tax rates in recent years. Instead, it has increased its amount of taxes paid through increased activity. Ohio’s oil production increased about 496% and natural gas 852% just from 2013 to 2015. Carroll and Harrison counties have increased their tax income more than the other counties, and the report notes that all of these countries lack a major metropolitan hub that could attract investment. That means the tax base from energy production is vital to funding local government services, and most importantly that means schools.
If your company is looking to secure leases in Ohio or throughout the region, you should work with a company that knows the area and understands the importance of oil and gas to the local communities. Call the experts Cimmaron Land for help with all your leasing needs.