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OOGA report: Ohio Oil and Gas Industry Property Tax Payments

Posted By Lyndsey Kleven, Communications Coordinator, Monday, February 13, 2017
Updated: Tuesday, February 14, 2017

The Ohio Oil and Gas Association (OOGA) along with Energy In Depth (EID) has released its first white paper in the 2017 Utica Shale Local Support Series: Ohio Oil and Gas Industry Property Tax Payments report, highlighting that the oil and natural gas industry has contributed $43.7 million to six Ohio counties from 2010 to 2015. The report projects that over the next decade, $200-$250 million will be paid to these six counties alone. We encourage all of our members to read the report and distribute the findings among interested parties. 

Given the record-breaking oil and natural gas production in 2012 and 2013, it should come as no surprise that the real estate property tax revenue, officially referred to as an ad valorem tax, has climbed as result. Of the $43 million generated between 2010 to 2015 from this tax, 95 percent was a direct result of horizontal drilling activity in the Utica Shale. In addition, of the total receipts from all real estate property taxes collected in 2015, the ad valorem taxes from wells accounted for (on average) 24 percent of total revenue collected from all real estate property taxes for these counties. This is significant, as prior to 2015, the ad valorem tax revenues from wells accounted for less than one percent of total revenue from all real estate property taxes.

Ohio oil and natural gas reserves are assessed and taxed as real estate, similar to property taxes paid on a residential home. All of the revenue collected from this tax goes directly to support the areas where the oil and natural gas is produced: counties, villages, townships, cities, and most importantly, local schools.

Key Findings For Ohio Shale Counties:

· Total Property Tax Paid (2010-2015) $43 Million

· Projected Property Taxes to Be Paid (2016-2026) $200-$250 Million

· Amount of Property Tax Directly Paid To Local Governments/Schools 100 Percent

· Percent of Property Tax Collections to Ohio Local Schools 60-70 Percent

Quick Links:

In the news:

Ohio drillers say 6 shale counties saw $43M tax bump (FOX Business, 2/9/2017)

Drillers Paid $43M in Property Tax in Ohio (The Intelligencer, 2/10/2017)

Ohio's oil and gas industry projects paying $250M in property taxes over 10 years (Columbus Business First, 2/9/2017)

Utica shale wells gush tax revenue (Canton Rep, 2/9/2017)

Report: Property tax on Ohio oil, gas increasingly aids schools, governments (Columbus Dispatch, 2/9/2017)

Eastern Ohio counties reap millions from oil and gas (Times Recorder, 2/9/2017)

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