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OH HB212
Bill
Status
6/18/2013
Primary Sponsor
Robert Hagan
Click for details
AI Summary
HB 212 Summary
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Levies a severance tax of 7.5% on the value of oil, condensate, and natural gas liquids extracted from horizontal wells, with variable rates for natural gas based on energy content (measured in British thermal units per cubic foot).
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Distributes tax revenue as follows: 47% to impacted subdivisions, 20% to nonimpacted subdivisions, 11.7% to a severance tax trust fund, 9% to an environmental remediation fund, 7% to a well inspection fund, 4% to the oil and gas well fund, and 1.3% to the trust fund's administrative expenses.
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Creates a severance tax trust board to manage and invest the permanent fund, with authority to appropriate funds beginning in fiscal year 2020 at percentages increasing from 1% to 5% of investment earnings for economic diversification, education, workforce development, and higher education.
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Designates local governments as "impacted" or "nonimpacted" based on horizontal well development, with distributions to impacted and nonimpacted subdivisions allocated using employment, population, and road mileage factors.
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Applies to oil and gas severance occurring in calendar quarters beginning October 1, 2013, and takes effect immediately without being subject to referendum requirements.
Legislative Description
To levy a tax on the severance of oil, gas, condensate, and natural gas liquids from horizontal wells, to distribute revenue from the tax to environmental and oil and gas regulatory purposes, local governments impacted and not impacted by horizontal well development, and a permanent fund to promote economic development, and to provide for the administration, investment, and use of the permanent fund.
Horizontal wells-severance tax-pay for regulation/economic development
Last Action
To Agriculture and Natural Resources
6/18/2013