Governor Kasich proposed tax and fee increases for producers in Ohio last Wednesday during the start of the Ohio Oil and Gas Association’s winter meeting.  Among other items, the Governor’s plan includes a 4% severance tax on oil and natural gas liquids and a substantial impact fee.  The industry’s response was not enthusiastic:  "’Though we generally support an income-tax decrease, we do not support asking one industry to disproportionately fund it,’ the [Ohio Oil and Gas Association] said in a statement. ‘We also believe that Ohioans who have struggled during the economic downturn would prefer to have a good-paying job now, instead of a small tax break years down the road.’"  (From the Dover-New Philadelphia Times).  That response was mirrored by Ohio legislators.

For the Governor’s reaction, see this article from the Columbus Dispatch:  "Gov. John Kasich late yesterday lashed out at fellow Republicans controlling the Ohio House after learning they plan to strip out the tax provisions of his revamped state budget."

We expect this won’t be the end of the issue.

[Update:  From today's Dispatch:  "As the debate unfolds, both sides will use examples from other states. Researchers warn that there are big challenges to comparing the vastly different approaches, and many reasons to proceed with caution in deciding how to structure a tax. *** 'It’s a bag of snakes more than a can of worms,' said David Passmore, director of the Institute for Research in Training & Development at Penn State University."]