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Kasich Said to Plan Raising Ohio Drilling Tax as High as 4%

Oil and natural-gas drillers in Ohio would pay a severance tax as high as 4 percent to fund income-tax cuts under a plan Governor John Kasich will unveil next week, according to an administration proposal obtained by Bloomberg News.

Kasich, a Republican, will call for taxing oil extracted by horizontal drilling at 1.5 percent of market value for the first year, a rate that may be extended another year if initial drilling costs aren’t recovered, documents show. After that, the rate would be 4 percent annually, according to the proposal.