Changes on the way for governor’s tax plan
Prior to breaking for summer recess, House Finance Chairman Ron Amstutz announced there would be major changes to Governor John Kasich’s tax proposal included in the biennial budget bill. Amstutz said changes to the severance tax are not likely to be included in the House substitute bill, which is expected to be adopted the week of April 8.
Under the initial proposal, the severance tax would be raised from the current 20 cents per barrel to 4 percent for horizontal wells producing oil, natural gas liquids and condensate following the first year of production—the rate would be 1.5 percent the first year to allow producers to recover the cost of preparing the well site and drilling the well. Tax rates would be 1 percent for horizontal wells producing natural gas.