Sales Tax Revenues Higher in Ohio Shale Counties
YOUNGSTOWN, Ohio – Sales tax revenues in eight core oil and gas producing counties in Ohio’s Utica shale increased 15% higher than the other 80 counties between 2012 and 2016, according to a report compiled by Energy In Depth.
Belmont, Monroe, Guernsey, Harrison, Carroll, Columbiana, Jefferson, and Noble counties together posted a 45% gain during those five years versus the average 30% increase the others experienced, the organization said.
Since 2012, the oil and gas industry has pumped more than $50 billion into Ohio in the form of drilling, midstream development and end users such as manufacturing plants, energy plants and natural gas liquids storage, said Jackie Stewart, senior director, energy & natural resources.
All eight counties have enjoyed a rise in sales tax revenues since oil and gas exploration began in earnest in the Utica shale. Harrison County, for example, averaged sales tax revenues of $1.3 million a year between 2007 and 2011. Between 2012 and 2016, when exploration as well as midstream development materialized, sales tax revenues increased to an average $4.2 million per year, or a boost of 215%
In Monroe County, which boasts some of the most productive dry-gas wells in the Utica, sales tax revenue rose an average 130% during the period. Between 2007 and 2011, the county took in an average of $1.4 million in sales tax revenues a year; between 2012 and 2016, that number jumped to an average of $3.4 million.
Columbiana County has also seen a gradual increase in sales tax revenues, according to the data. In the five years before shale development, sales tax revenues stood at an average of $12.2 million. Between 2012 and 2016, average sales tax revenues increased to $15.9 million a year.
These increases affect the entire state, Stewart said, because the majority of revenues go into Ohio’s general fund.
Copyright 2017 The Business Journal, Youngstown, Ohio.
Published by The Business Journal, Youngstown, Ohio.
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