Ohio group seeks tax hike on oil and gas billions

JULIE CARR SMYTH Associated Press Published:

COLUMBUS, Ohio (AP) -- A liberal policy group is proposing a tax hike on oil and gas profits ahead of Gov. John Kasich's (KAY'-sihks) State of the State speech Tuesday in an region where drilling has proliferated.

Innovation Ohio also seeks passage of a "Landowner Bill of Rights" and a "Hire Ohio" plan to assure residents get their fair share of proceeds and jobs from the coming shale boom.

An analysis the group released Thursday found shale drilling could mean $86 billion to Ohio natural gas developers over the next 20 years. The report identified Ohio oil resources worth another $130 billion to $550 billion, along with natural gas liquids of unknown value.

The tax increase would bring Ohio's tax rate in line with Texas', raising an additional $5.9 billion to $25.3 billion.