Ohio’s top producing Utica Shale counties have collected more than $349 million in real estate property taxes on oil and natural gas activity since 2010, according to the latest data from county auditors compiled by the Ohio Oil and Gas Association. As OOGA and EID previously highlighted, these revenues have empowered Ohio communities to fund local schools, new infrastructure, and other projects to increase the well-being of county constituents.
The most recent data from 2021 show the oil and natural gas industry paid a total of $57.6 million to county governments, the second highest annual payment in the last 12 years behind only 2020 ($62.2 million). While many counties maintained stable tax revenue compared to record-setting 2020, Jefferson County, in particular, continued to experience robust growth.
Jefferson’s oil and natural gas-derived tax revenue grew by a whopping $2.7 million over a record-setting 2020, receiving nearly $11.2 million. Compared to 2019, the county received an additional $6.3 million in 2021. Harrison County also saw increased tax revenue in 2021, bringing in an additional $1.1 compared to the prior year.
The substantial tax revenue generated by the oil and natural gas industry has a significant impact on the economic health of Ohio counties. All the revenue collected is allocated directly to support counties, villages, townships, cities, and, of course, local schools. Reflecting on the benefits that the industry provides to many Ohioans, Rob Brundett, the President of the Ohio Oil & Gas Association, stated:
“The latest tax numbers again reinforce the positive impact our industry has in the communities where we operate. 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.”
These numbers come on the heels of a report from the Ohio Natural Energy (ONE) Institute finding that the state’s oil and natural gas industry paid a combined $755 million in severance and Ad Valorem tax revenues from 2010 to 2021. As ONE Institute Chairman David Hill explained:
“The Ohio natural gas and oil industry has always strived to be a community partner but these numbers make the benefit clear. From the energy they use on a daily basis to the tax dollars that go to fix their roads and improve their schools, it’s clear Ohio’s natural resources are propelling the state forward.”
Bottom Line: A robust oil and natural gas industry in Ohio is inextricably linked with local communities’ ability to provide comprehensive services to their residents, increase access to educational opportunities, and ensure jobs in counties that have struggled due to automation and offshoring of manufacturing jobs. Oil and natural gas production is not only a gamechanger for locals, but it also lowers energy and commodity prices for all Americans, ensuring that safe and reliable supplies can reach as many consumers as possible.
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