In response to Ohio Governor John Kasich’s proposal last week to implement a severance tax on oil and gas production, leaders of Ohio’s state legislature last week announced their intent to adopt a substitute measure excluding the severance tax provisions from the proposed mid-biennial budget review bill. 

Republican State Rep. Ron Amstutz, chairman of the House Finance and Appropriations Committee, announced that the tax provisions of the mid-biennium budget review Kasich unveiled on March 14 would be stripped out of a bill to overhaul the state budget.  Rep. Amstutz commented that he does not expect his Committee to focus on the severance tax provisions in the next few weeks because there is not time to deliberate the proposal as he believes it should be deliberated.  He further stated that the severance tax could be part of a larger tax reform discussion, but that discussion would likely not take place during this year’s legislative sessions.

Governor Kasich noted that he will continue to advocate for his severance tax proposal.  This blog will continue to monitor the issue and will provide timely updates if and when the Governor’s proposal moves forward.