The bill introduced in the 136th General Assembly seeks to amend various sections of the Revised Code concerning the severance tax on oil and natural gas, while also creating an electric bill credit for residential customers. A significant change includes the repeal of section 1509.50 and the introduction of new sections 4928.57 and 4928.571, which establish the Ohio energy credit fund and detail the application process for bill credits. The severance tax structure is also modified, shifting from a fixed amount per barrel of oil to a percentage of the total volume severed, multiplied by the average quarterly spot price. Additionally, the bill clarifies the authority of the division of oil and gas resources management and establishes a priority lien for unpaid fees related to oil and gas wells.

Moreover, the bill revises the distribution of severance tax receipts, adjusting the percentage allocations to various funds, including the newly created Ohio energy credit fund. It introduces definitions for "tax" and "severer," which now encompass amounts due under the repealed section 1509.50, and grants the tax commissioner the authority to refund amounts paid illegally or erroneously. The bill also includes appropriations for fiscal years 2026 and 2027, ensuring that funds are allocated for their intended purposes, such as environmental protection and energy cost relief for Ohio residents. Overall, these amendments aim to enhance the management and regulation of natural resource extraction while providing financial relief to residential electricity customers.

Statutes affected:
As Introduced: 1509.02, 1509.34, 5703.052, 5749.01, 5749.02, 5749.04, 5749.06, 5749.07, 5749.08, 5749.10, 5749.12, 5749.13, 5749.14, 5749.15, 1509.50