API-Ohio runs radio ads against proposed state severance tax

The American Petroleum Institute launched a series of radio ads in Ohio urging people to call their state senators in opposition of any additional taxes on the oil and gas industry, said Chris Zeigler, API-Ohio executive director.

An increased severance tax on horizontal drilling and hydraulic fracturing was expected to be included in a Senate version of a budget bill for Ohio.

Ohio Gov. John Kasich proposed a 6.5% tax on oil and gas sold at the wellhead and a 4.5% rate on natural gas liquids. The Ohio House of Representatives pulled the severance tax proposal out of the budget.

A budget measure is in a Senate committee now, and if authorized, could progress to a conference committee around June 15, Zeigler said.

“Right now, the industry is going through a downturn,” Zeigler said. “Why would we want to add costs through more taxation on an industry that is just trying to weather the storm at this point?”