Ohio Shale Development Generates $57M in Property Taxes
YOUNGSTOWN, Ohio – Oil and gas development in Columbiana County yielded $602,967 in real estate property taxes in 2021, according to the Ohio Oil & Gas Association, citing the most recent data compiled by county auditors.
The industry has paid out nearly $5.9 million in property taxes to Columbiana County since 2010, data show. In 2015, Columbiana County received its largest intake of oil and gas property taxes with $1.071 million.
Still, the county’s numbers pale in comparison to other counties in southeastern Ohio where production is more robust, according to the association.
Belmont County, for example, received the largest amount with $17.2 million in property tax revenue in 2021. Jefferson County collected $11.1 million, and Monroe County received $10.6 million.
In all, the oil and gas industry paid $57.6 million in property taxes in 2021 across eight counties in eastern Ohio where shale development is most prominent, the association said.
Since 2010, the industry has generated more than $349.9 million in property taxes throughout the eight counties.
“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 local schools.
The ad valorem tax is one of the ways in which operators support local communities, such as through sales taxes, commercial activity taxes, severance and income taxes and road use maintenance agreements, the association said.
Published by The Business Journal, Youngstown, Ohio.