Nichole Hannahs

Taxing the Oil and Gas Industry

by Nichole Hannahs on June 11, 2014 at 10:59 am

The State Legislature may be on break for the summer, but work sessions continue to meet to get bills ready for the fall.

One bill peaking the interest of local representatives is the Severance Tax Bill. The bill would place 17.5% of tax revenue from the oil and gas drilling into a legacy fund.

Hill said while the oil and gas industry has been great for the state and they’re happy to have them here, it also poses issues that need addressed.

"Roads and bridges definitely take a hit and need added repair and maintenance on them," said 97 District State Representative Brian Hill. "This will allow some of those dollars to go for those projects. When you go to Southeastern Ohio there are water, sewer issues. All type of infrastructure issues. This will be put into a fund to address many infrastructure issues."

The bill passed the house and will move to the Senate this fall. Senator Troy Balderson said he’s been working a legacy fund for the oil and gas money for two years.

He said there are some items from the House Bill he’d like to change, such as going after more money for the local communities. He said the monies are needed for when the oil boom is over.

"Go to a local coal mine community that’s now bust and there’s nothing there," explained District 20 State Senator Troy Balderson. "We’re trying to have the infrastructure. We’re trying to have things in place that can take the absences when that does happen."

Representative Hill and Senator Balderson were in town Wednesday giving human resource officers an update on the latest news from the legislature. The event was sponsored by the Muskingum County Chamber of Commerce.