As it stands, Ohio's production tax rates â¿¿ 20 cents a barrel on oil and 3 cents per 1,000 cubic feet of natural gas â¿¿ are among the lowest in the country. Annual collections on oil production have remained roughly flat from 2007 to 2011.According to the Ohio Department of Taxation, tax revenue on natural gas production rose by less than 2 percent last year â¿¿ up $40,000 to $2.1 million â¿¿ despite an explosion of drilling activity that has included 391 new shale wells permitted the last 20 months. And Ohio never thought to tax natural gas liquids, a newly developing revenue area for the industry.
Cash-strapped States Weigh Tax Policy On Drilling
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