UTICA SHALE PRODUCTION HAS GENERATED OVER $364 MILLION IN AD VALOREM PROPERTY TAXES IN EASTERN OHIO COUNTIES
UTICA SHALE PRODUCTION HAS GENERATED OVER $364 MILLION IN AD VALOREM PROPERTY TAXES IN EASTERN OHIO COUNTIES
COLUMBUS—Ohio’s oil and natural gas industry paid $57.6 million in real estate property taxes in eight eastern Ohio counties in 2021, according to the latest data from county auditors. Since shale development began in Ohio in 2010, the industry has paid more than $364 million in property taxes in those counties. The 2021 tax payments rank second highest over the past 12 years behind only 2020 ($62.2 million).
Property taxes – or ad valorem taxes – are collected from oil and natural gas operations in several eastern and southeastern Ohio counties. Specific 2021 totals per county are as follows:
- Belmont: $17,255,257
- Carroll: $2,533,015
- Columbiana: $602,967
- Guernsey: $4,952,724
- Harrison: $8,142,832
- Jefferson: $11,186,966
- Monroe: $10,625,684
- Noble: $2,332,318
- TOTAL: $57,631,767
“The latest tax numbers again reinforce the positive impact our industry has in the communities where we operate,” said Rob Brundrett, President of the Ohio Oil & Gas Association. “Not only does the industry employ more than 200,000 Ohioans and provide abundant and affordable energy, but we also provide millions of dollars for local governments and infrastructure projects.”
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. The ad valorem tax is only one of many ways in which operators support local communities, such as through sales taxes, commercial activity taxes, severance and income taxes and road use maintenance agreements (RUMAs).
Founded in 1947, OOGA is a statewide trade association, today serving about 1,300 members, including both small, independent conventional producers and large independent horizontal operators exploring Ohio’s shale play. The membership also consists of midstream companies, large-scale transmission line companies, contractors, oilfield service and supply providers, manufacturers, gas utilities and various other professional entities.