Severance tax revenue projections from the Legislative Service Commission and the Office of Budget and Management differ significantly

Estimates on how much revenue Gov. John Kasich's recently introduced severance tax proposal will generate in fiscal year 2015 differ greatly between the Office of Budget and Management (OBM) and the Legislative Service Commission (LSC), according to the Gongwer Ohio Report (See our March 12, 2014, blog post – "Kasich administration introduces another new severance tax proposal as part of its second mid-biennium budget review"). The OBM estimates the governor's 2.75-percent severance tax on gross receipts from horizontal shale wells "will generate $121 million" that year, as opposed to the LSC's estimate that the measure will only produce between $29 million and $80 million in 2015.