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Debates Continue on Pennsylvania and Ohio Severance Tax Proposals

Pennsylvania legislators continue to debate a severance tax proposal announced late last year, and previously discussed on this blog.  Under that severance tax proposal, the commonwealth’s system of impact fees would be replaced with a 4.9% severance tax.  A bipartisan group of legislators announced that proposal, and it appears that support for a severance tax … Continue Reading

Ohio House Ways and Means Committee Receives Testimony on Substitute House Bill 375

            On February 12, 2014, Ohio House Ways and Means Committee Vice-Chair Rep. Gary Scherer offered a substitute House Bill 375 to the Ways and Means Committee, including significant amendments from the prior version of House Bill 375 previously reported here. The Ohio Legislative Service Commission has published a Substitute Bill Comparative Synopsis, which describes … Continue Reading

Michigan Lawmakers Evaluate Lower Severance Tax and Infrastructure Bills for Carbon Dioxide-Injected Oil and Gas Wells

While legislation driven by the rapid growth of horizontal drilling and hydraulic fracturing has dominated oil and gas legislation in recent years, this week, Michigan lawmakers considered bills  to enhance viability of other extraction processes: so-called enhanced or secondary production techniques using carbon dioxide injection and similar methods.  At the Michigan House Energy and Technology … Continue Reading

Ohio Ways and Means Committee Receives Testimony on Horizontal Drilling Tax Proposal

            On January 8 and 15, 2014 the Ohio House of Representatives Ways and Means Committee received testimony on House Bill 375 (“HB 375” or the “Bill”).  The Bill, previously reported on this blog, would introduce a new tax on owners of horizontal oil and natural gas wells through which oil or natural gas are … Continue Reading

Pennsylvania Legislators Propose Gas Drilling Tax

A bipartisan group of Pennsylvania state legislators have proposed a law that would require energy developers to pay a 4.9% severance tax on natural gas produced within the commonwealth.  As proposed, the law would tax the actual value of any extracted natural gas resources.  This new scheme is intended to supplant the current system of … Continue Reading

Ohio House Bill 375

            On December 4, 2013 Ohio House Speaker Rep. William Batchelder, Speaker Pro Tempore Rep. Matt Huffman, Majority Whip Rep. Cheryl Grossman, Finance and Appropriations Committee chair Ron Amstutz, Agriculture and Nature Resources Committee chair Rep. David Hall, and other members of the Ohio House Republican Caucus introduced House Bill 375 (“HB 375”) which includes … Continue Reading

Ohio House Leaders Propose Higher Oil and Gas Taxes on Horizontal Drilling

Co-Author:  Daniel Kavouras Republican lawmakers in the Ohio House of Representatives have proposed a tax increase on oil and gas production in the state, focusing specifically on wells using “horizontal drilling“ in conjunction with hydraulic fracturing to extract oil and natural gas from Ohio’s shale deposits. The bill—HB 375—would impose a 1 percent “severance” tax … Continue Reading

New Bill Aims to Eliminate Tax Subsidies for Oil, Gas and Coal Industries

A bill introduced on Thursday, November 21 in the Senate by Bernie Sanders, I-Vt., and in the House of Representatives by Keith Ellison, D-Minn., is designed to remove an estimated $110 billion in existing tax subsidies for the oil, gas and coal industries over the next decade. Titled the End Polluter Welfare Act (“EPWA”), the … Continue Reading

Severance Tax Debate Continues

Through the summer and leading up to the adoption of Ohio’s biennial budget, changes to Ohio’s severance tax were discussed in the General Assembly and in the media.  Severance tax provisions were cut from discussions fairly early in the budget process, and the budget became law without any change to the severance tax.  Still, those … Continue Reading

Shale Exploration Benefiting Ohio’s Economy

Edward Hill, Ph.D., and Kelly L. Kinahan of the Maxine Goodman Levin College of Urban Affairs at Cleveland State University recently published a report based on sales tax data that concludes Utica shale development is triggering wealth creation in Ohio – though its effect on employment growth remains sluggish.  Hill and Kinahan analyzed four indicators … Continue Reading

Ohio Budget Bill Restructures Severance, Income, Sales, and Services Taxes

Recently this blog has analyzed various aspects of HB 59, including Ohio Governor John Kasich’s relaunched severance tax proposals.  Expanding on the tax implications of HB 59, BakerHostetler’s Tax Group has prepared a comprehensive summary of the Governor’s overall budget and tax proposals. This analysis provides very helpful context to Gov. Kasich’s proposed severance taxes on new, … Continue Reading

Ohio Governor Relaunches Severance Tax Plan In Budget Proposal

Yesterday Ohio Governor John Kasich unveiled his proposed budget for fiscal years 2014 and 2015 at an hour-long press conference.  The Governor’s proposal, a summary of which can be found here, contained a comprehensive plan to enact new severance taxes for certain categories of new hydraulically fractured horizontal wells in the state.  By way of background, … Continue Reading

Legislators In Ohio General Assembly Propose Numerous New Shale Bills As Close Of Session Nears

The Ohio General Assembly closes its two-year term later this month.  The waning days of the term, falling between the November election and the end of the year, are known as the “lame-duck” session.  During this session, legislators have introduced a flurry of bills relating to hydraulic fracturing and shale gas drilling.   Many of these … Continue Reading

Pennyslvania Legislature Proposes Shale Tax Credits

The Pennsylvania General Assembly introduced legislation on Monday, May 21 that would establish and implement a Marcellus Shale Job Creation Tax Credit. Specifically, House Bill 2399 would designate $25 million each fiscal year to the Department of Community and Economic Development (DCED)for the Marcellus Shale Job Creation Tax Credit.  A company would be eligible to receive the … Continue Reading

Ohio Legislators Remove Severance Tax Provisions From Budget Bill

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 … Continue Reading