Severance Tax Legislation Narrowly Advances
The bill creates a 2.5% fracking tax to fund an income tax cut estimated around 1.5%, and it allows drillers to subtract the commercial activity tax they pay from that fracking tax.
Three Republicans opposed the bill along with all but one Democrat - including Mike Foley of Cleveland -- who said the rate is too low.
“I don’t think I’ve ever voted against a tax increase bill.”
But committee chair Jeff McClain of Upper Sandusky says problems with the bill will be worked out in the Senate.
"The politics of it is that that’s where it’s going to happen, not here. We are at the point where we need to do something.”
But Governor Kasich had wanted an income tax cut through a higher fracking tax rate along with increases in the cigarette tax and the commercial activity tax, which haven’t gotten hearings.