Ohio Severance Tax Question.

ORC 5749 addresses Severance Tax.  How does Ohio Courts define the "Severer".  ORC 5749 states:

“Severer” means any person who actually removes the natural resources from the soil or water in this state.

Does the Ohio Courts consider BOTH the Lessor and Lessee as the "Severer"?  If so, Ohio Law may REQUIRE the Lessor to pay his pro-rated share.  There may not be a way to make the Lessee pay "ANY AND ALL SEVERANCE TAX".  Any lawyers on here?

 

REFERENCE:

http://codes.ohio.gov/orc/5749

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Replies to This Discussion

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on December 10, 2011 at 3:53pm
Severance tax has traditionally been deducted by the operator and the landowner's royalty reflects that. Most operators don't expect landowners to calculate the payment and send a check to the state. To answer your question no, the law only pertains to one party. The minerals are only severed once and thus payment is required once.

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