The Star Beacon; Ashtabula, Ohio

World, nation, state

February 27, 2014

Fracking bill may yield 1 percent income-tax cut

Ohioans would be in line for a future maximum income-tax cut of about 1 percent, based on the latest revenue estimates of a bill that seeks to increase severance taxes on shale fracking in Ohio.

In an analysis that makes it clear the numbers are “very preliminary” and difficult to predict, the nonpartisan Legislative Service Commission says that by 2019, House Bill 375 could bring in about $186 million annually. Of that, $120 million would be used for a state income-tax cut.

That is the commission’s high-end scenario. Under its low-end projection, the tax cut by 2019 would reach $39 million — about a 0.33 percent income-tax cut.

Meanwhile, the bill’s income-tax credit for individuals paying the new severance tax would cost the state general-revenue fund between $9 million and $21 million a year.

The analysis notes that predicting tax revenue is an exercise loaded with uncertainty.

“Complicating the estimates of new producing wells is the fact that so many wells already drilled are not producing,” the analysis said. “The tax revenue depends on other factors, including the prices at which petroleum, natural gas and natural-gas liquids can be sold. ”

The commission’s low scenario projects 396 to 445 new shale-fracking wells per year from 2015 to 2018, while its high estimate projects 420 to 629.

The bill would raise $42 million to $108 million more per year by 2019 compared with the current tax rate, according to the analysis. The bill would replace Ohio’s current volume-based tax - 10 cents per barrel of oil and 2.5 cents per MCF (1,000 cubic feet) of natural gas - with a gross-receipts tax. The fracking tax would start at 1 percent, then go to 2.25 percent after two years.

Rep. Jeff McClain, R-Upper Sandusky, the new chairman of the House Ways and Means Committee, said the numbers seem more reasonable than some of the initial estimates.

Text Only
World, nation, state
  • GROUNDED U.S., other countries ban flights to and from Israel

    A Hamas rocket exploded Tuesday near Israel’s main airport, prompting a ban on all flights from the U.S. and many from Europe and Canada as aviation authorities responded to the shock of seeing a civilian jetliner shot down over Ukraine.

    July 23, 2014

  • REPORT: Retaliation by supervisors common at VA

    A pharmacy supervisor at the VA was placed on leave after complaining about errors and delays in delivering medications to patients at a hospital in Palo Alto, California. In Pennsylvania, a doctor was removed from clinical work after complaining that on-call doctors were refusing to go to a VA hospital in Wilkes-Barre.

    July 22, 2014

  • Veteran's Ducks Iraq vet cited for owning 14 therapeutic pet ducks

    An Army veteran who hurt his back during the Iraq War is worried a citation will result in him losing his 14 pet ducks, which he says are therapeutic.

    July 21, 2014 1 Photo

  • Stacked Apartment.jpg New York building shows how mod design stacks up as cool

    In a city piled high with ambitious architecture, a seven-floor structure off the beaten path boasts a distinction of its own: It’s billed as the first multistory, modular-built apartment building to open in the nation’s apartment capital.

    July 21, 2014 1 Photo

  • Scores dead in first major ground battle in Gaza

    The first major ground battle in two weeks of Israel-Hamas fighting exacted a steep price Sunday: It killed 65 Palestinians and 13 Israeli soldiers and forced thousands of terrified Palestinian civilians to flee their neighborhood, reportedly used to launch rockets at Israel and now devastated by the fighting.

    July 21, 2014

  • Traditional lottery games hold their own

    Ohio’s traditional lottery games are mostly doing well despite competition from their electronic counterparts at four racinos.

    July 20, 2014

  • HIV diagnosis rate fell by third in U.S. over decade

    The rate of HIV infections diagnosed in the United States each year fell by one-third over the past decade, a government study finds. Experts celebrated it as hopeful news that the AIDS epidemic may be slowing in the U.S.

    July 20, 2014

  • Suddenly, the sun is eerily quiet: Where did the sunspots go?

    The sun has gone quiet. Almost too quiet.

    July 20, 2014

  • Monitors try to secure Ukraine plane crash site

    International monitors moved gingerly Saturday through fields reeking of the decomposing corpses that fell from a Malaysian airliner shot down over rebel-held eastern Ukraine, trying to secure the sprawling site in hopes that a credible investigation can be conducted.

    July 19, 2014

  • Israeli bulldozers destroy Hamas tunnels in Gaza

     Israeli bulldozers on Saturday demolished more than a dozen tunnels the military said were being used by Hamas gunmen to sneak beneath the southern border of the Jewish state and carry out attacks on its soldiers and civilians.

    July 19, 2014

House Ads

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
AP Video