Drilling Down

6 Counties Share $43.7M in Property Taxes from Shale

By Jackie Stewart, Energy in Depth

COLUMBUS, Ohio — Ohio’s top six Utica Shale counties collected more than $43.7 million in real estate property taxes on production from 2010-2015, according to a new report by Energy In Depth and the Ohio Oil and Gas Association.

The report entitled “The Utica Shale Local Support Series: Ohio’s Oil and Gas Industry Property Tax Payments,” consults ad valorem tax collection data from six Utica Shale mineral producing counties from 2010-2015 to examine the impact made from the first three years of Utica Shale production in these six counties.

The report includes breakout statistics for each county as well, including Belmont, Carroll, Guernsey, Harrison, Monroe and Noble.

Below are the report’s key findings, by the numbers:

  • Real estate property tax paid in six counties: $43.7 million
  • Projected property taxes to be paid, 2016-2026P $200- to $250 million
  • Amount of tax directly paid to local government and schools: 100%
  • Percent of property tax collection to Ohio local schools: 60%-70%

The report helps to quantify taxes to be paid over the next 10 years, based on payments already received to six counties from the first three years of Utica Shale production (taxes collected in the latest year available, 2015, reflect 2013 production.

Using the Freedom of Information Act, Energy in Depth was able to obtain the data from these six counties on real estate property taxes collected, as well as the breakout of real estate property taxes paid specifically from wells or ad valorem taxes.

Considering Utica Shale oil production has increased by 496% and natural gas production has increased by 852% since 2013, it is reasonable to conservatively project Ohio Utica shale counties will  receive an additional $200 million to $250 million boost from real estate property taxes on wells over the course of 10 years (2016-2026).

Of course, this is only one tax the oil and natural gas industry pays in Ohio. As EID has previously reported, sales tax revenues have skyrocketed by 65% in these same counties over the past five year as well. Real estate taxes paid on wells accounted for, on average, 22% percent of the total real estate property taxes paid in 2015 to these counties.

To access the full report, and the county specific fact sheets, click the links below:

Editor’s Note: The author, Jackie Stewart, resides in Canfield and is employed by Energy in Depth, an industry funded advocacy group.

Published by The Business Journal, Youngstown, Ohio.