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'Severance Tax' Still On State Lawmakers' Minds

The Ohio House again stripped a proposed oil and gas tax increase out of Gov. John Kasich's original budget plan. From our Statehouse Bureau Andy Chow has more on a House Democrat's idea for a fracking tax.

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Kasich's most recent measure would put the so-called severance tax at 6.5%. But Democratic Representative Jack Cera of east Ohio is pushing for a different plan that would put the rate at 2% for the first two years of the life of a well. That would go up to 3% the next two years then end at 4%.

"This is a modest tax, it's actually-the first two years-is lower than a tax that the House Republicans passed in the previously General Assembly," said Cera.

The big difference and the reason Cera's measure might not go very far is that his bill sends more money to local government and creates less tax breaks for the industry.

His bill has yet to receive a committee hearing.