Monday, December 9, 2013 by Kristy Foster Seachrist
COLUMBUS — A new version of a severance tax on gas and oil has been introduced in the Ohio House of Representatives that has the support of the oil and gas industry.
State Rep. Matt Huffman, R-Lima, introduced the new severance tax proposal, Ohio House Bill 375, Dec. 4.
The new severance tax proposal:
- Reduces the severance tax rate on persons extracting oil and natural gas by means other than horizontal wells (traditional vertical drilling);
- Imposes a tax on the net proceeds of oil and natural gas produced through horizontal wells;
- Provides a non-refundable credit against the state income tax equal to the amount of the horizontal severance tax paid by the taxpayer (which includes the oil and gas producer with a working interest or landowner with a royalty interest); and
- Provides an exclusion from the commercial activity tax (CAT) for proceeds of the sale of oil and gas by persons paying the severance tax applicable to the use of horizontal wells.
Read more: http://www.farmanddairy.com/news/utica-marcellus-shale-ohio-severance-tax-proposal-introduced/167977.html