Ohio’s Oil and Natural Gas Market Update – March 17, 2015

For those who think the development of shale natural gas resources in the State of Ohio is only a bad thing, I challenge you to examine the recent revenue figures reported by local governments across eastern and southeastern Ohio.

Recently, Energy In Depth spoke with several elected officials to discuss their tax collections data from 2014.  According to EID, the collected bed tax figure increased in Cambridge, Ohio by 60%.  The bed tax is a tax levied against hotel guests (and if you live near Cambridge, then you have seen the increase in hotels constructed near the interstate).  This means that the City of Cambridge collected an additional $200,000 in tax revenue.  While that might not sound like an astronomical figure, an extra $200K in the budget can mean the difference between no full-time emergency responders and two or three on staff.

Likewise, sales tax revenues collected by local governments have skyrocketed.   Carroll County, Columbiana County, and Harrison County have collected over $10 million in new taxes from just the past few years.  In particular, Columbiana County saw its tax revenues jump from $11,700,000 in 2010 to $16,300,000 in 2014.

What does all of this mean?  Well for one, more people (namely workers of all stripes) are staying at hotels in the area.  It also means that local residents and visiting workers are spending more money at Ohio businesses like restaurants, grocery stores, gas stations, car dealerships and other businesses.  Not only do those businesses benefit, but so too do the governments and communities that depend upon their tax revenues.

Accordingly, the Utica shale development is largely responsible for funding Ohio local governments with millions of dollars in additional tax money – money that pays for roads, fire departments, police departments, and other vital services.  Should you have any questions about legal issues related to oil and natural gas development, or even leasing your land, feel free to call me at (513)852-6071 or send me an email at bwfox@woodlamping.com.

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