My bet is it will be upon the landowner!
And then he will want to raise the state gasoline tax to fix the roads. We won't notice another nickel when gas hits $5.30 a gallon.
And what of all the leases held without requirement for O&G company to cover these taxes. In general it will probably be land owner paid with only a small % of us benifiting. The taxpayers have a choice: Drilled from behind or drilled from the front and see it coming and pretend to like it. Still nothing new under the sun.
Sounds like an educated comment that someone that paid a % to an attorny run landowner group would make. And did your educated group learn this in the 1800's, early 1900's or back in the last half of the 1900's when most minerals and O&G was under some type of lease? So do you think those you are suggesting are ignorant should pay more taxes or do you just really like the Gov.?
Gale, I think you are the radical suggesting one industry or any should subsidize anybodies taxes. Redistribute your own wealth. How dare you or the governor think it's OK to use any landowners backs to carry yours or anyones burdens. You can write a check to the state. I hear thats trendy with the smart crowd nowadays.
Gale, I did not make a "bad deal". Generaly gubbermint angencies like fish and game, EPA or environmentalists endorse severance taxes. Instead of making a company or industry responcible they think they will just pool a bunch of money to fix accidents or irresponcibility latter. Your whole premis is BS and supports big gubbermint and legislated redistrubution of public money. Do you work for the gubbermint, or just don't get it?
Gale you are the idiot supporting one more BS tax. Oh but it's an OK tax because your gov. gave you a treasure map to avoid and landowners HBP from a 1953 lease are just stupid and will pay for lowering your income tax. I would be vomiting but my thick skull keeps thoughts of idiots like you out of my stupid mind.
Gale, The 1953 lease scenerio is a made up situation to bring up many folks position out there. I am here to learn as much as I can before entering into a lease with the bulk of our rights. I apreciate all the people sharing here with many looking to help themselves but also their neighbors and communities.
I would like to see all landowners in the region be in a good lease position that hasn't signed yet. I certainly am glad that you are smarter than many and have a good lease. It must have been quite a financial burden for you to maintain your better than your neighbors lifestyle keeping ahead of them, hopefully you can get out of debt now and maintain your narcistic, selfcentered me generation attitude in style. Believe it or not, there are folks out there that actually want their neighbors, community and country to do well and don't have your intense desire to always "appear in your narcistic blind veiw" to be smarter and better. I will stand up for your rights to prosper as a would stand up for the gambler and drug addicts right to work hard and prosper to maintain their sick lifestyle. There are surely a lot of folks out there in old and current "bad" leases so you can go to sleep at nite with a big smile on your big head knowing that you are smater and better and be thankful your neighbors aren't as blessed as you are. You can also keep calling me names to feel warm and fuzzy too.............they bounce right off my thick stupid skull.
Gale, I can read your words just fine,
"Per the quoted portion of the article above, Kasich will agree to the liberal democrats demands to increase the severance tax, but will require an across the board income tax cut."
Your post Gale, Your whole premis that the Gov. lying in bed with the Libs. and raising the tax is OK if it redistubutes that wealth to lower income taxes acrosss the board.
"It only gets better for shale owners because they have a republican governor telling them exactly how to avoid what societies leaches (liberal democrats and occupy wall street crowd) are going to try to steal from you via the tax code. "
Again you say this tax is stealing via the tax code, but hey, the gov. is going to support it because he can redistribute to everyone else.
And who is the socialist here? Hypocrite.
Landowners must spread the word and tell others to voice their opinion to their state legislators that they will be double taxed on their royalty. Now the state wants to increase the severance tax to 7% which the vast majority of landowners will have to pay pursuant to state law, unless their lease shifts the payment to the producer (a very small % of leases contain this provision). Additionally, the landowners must pay the state income tax with a maximum 6.5% rate on their total income. In fact, unless there is a credit or exemption for the landowners, it may very well be double taxation. Your annual royalty is $100,000, pay $7,000 for severance tax and must pay $x,000 for your state income tax which is on the entire $100,000. This severance tax to the producer is a business expense. I do not know if the landowner gets the same tax break. I understand that the governor has this on a very fast track.
Question here. If a severance tax is supposed to be put upon a landowner by the state or county but is paid by the oil producer wouldn't the land owner have to pay a income tax upon that amount as a paid benefit?
Gale, I'm one of the lucky ones.....My lease states "Lessee shall bear all severance taxes associated with production hereunder at the current rate in effect as of the Lease Date". Unfortunately, any increase in severance tax from the rate currently in effect as of the lease date shall be shared proportionately, with lessor's share being equal to the royalty rate..........Got to love KWGD! ;-)