Ohio oil and gas industry paid $57M in property taxes in 2021

an unconventional oil and gas drilling rig sits in a green field in eastern Ohio

Ohio’s oil and gas industry paid $57.6 million in real estate property taxes to eight eastern Ohio counties in 2021, the latest year for which data is available.

This is the second highest tax payment year in the past 12 years, according to the Ohio Oil and Gas Association.

“The latest tax numbers again reinforce the positive impact our industry has in the communities where we operate,” said Rob Brundrett, president of the Ohio Oil and Gas Association, in a recent press release.

Belmont County has the highest tax payment from the industry, taking in $17.2 million. It was followed by Jefferson County, with $11.1 million and Monroe County, with $10.6 million.

These property taxes, also called ad valorem taxes, are collected from oil and gas operations in the state. Ohio taxes oil and gas reserves as real property. Once production of an oil or gas reserve begins, its taxable value is determined by a formula developed by the state that includes historical production data.

The oil and gas industry has paid $364.1 million property taxes to school districts, counties and local municipalities since 2010, when the taxes were first assessed. About 60-70% of property taxes are distributed to schools.

J.P. Dutton, president of the Belmont County commissioners, said the increase in county income from the oil and gas industry has been helpful when putting together the budget and deciding levies for various county programs.

In addition to the property taxes, Belmont County has seen an increase in the past decade in income from leasing county land for oil and gas development and, more recently, from royalties coming in from production, Dutton said. They’ve used those funds for one-off capital improvement projects, like upgrades to the county fairgrounds and road work.

“We know we’re lucky to have this, so we really try to pick our projects carefully when we use those funds,” he said.

(Reporter Rachel Wagoner can be reached at 724-201-1544 or rachel@farmanddairy.com.)


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Rachel is Farm and Dairy's editor and a graduate of Clarion University of Pennsylvania. She married a fourth-generation farmer and settled down in her hometown in Beaver County, where she co-manages the family farm raising beef cattle and sheep with her husband and in-laws. Before coming to Farm and Dairy, she worked at several daily and weekly newspapers throughout Western Pennsylvania covering everything from education and community news to police and courts. She can be reached at rachel@farmanddairy.com or 724-201-1544.



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