Utica Shale Increasing Sales Tax Revenue For Local Governments
Shale production is rejuvenating economies through out eastern Ohio. Over the past year, counties with shale development have seen their sales tax increase by as much as 25%, another indicator of the incredible, positive impact the Utica Shale is bringing to the region. From landowners receiving lease payments and reinvesting in their farms or buying items for themselves they could not afford just a year earlier; to companies benefiting from the increased activity in their county, Utica Shale development is not only creating jobs, but pumping much needed capital into the local economy in eastern Ohio.
Taking a look at the top permitted counties in the state and their sales tax revenues over the past year, it is simple to see the tremendous impact the expanding development is having on the region. These are numbers that can’t be ignored when having an honest discussion on the benefits Utica Shale development is having on eastern Ohio.
Carroll County is the most permitted county in the Utica, and has seen more development to date by good measure. Carroll County has 176 Utica Shale permits, and has been Chesapeake Energy’s most active county in the state. With all of this development, Utica Shale has increased sales tax revenues in the county from $1,933,378.81 to $2,581,732.00. This increase represents a sales tax increase that equates to a 25% growth in just a matter of a year.
Harrison County is the second most permitted county in the Utica Shale, and with recent outstanding production results, has the possibility to become the sweet spot for Utica Shale development. With outstanding production from Gulfport’s Boy Scout and Wagner wells, as well as Chesapeake’s Buell Well, Harrison County has been receiving tremendous amounts of attention from shale developers in the region. In addition with the MarkWest facility opening up in the Cadiz Business Park, Harrison County will continue to enormous growth for years to come. Over the past year, Harrison County has increased sales tax revenue from $979,510.94 in 2011 to $1,234,734.40 for 2012, representing a growth of 21% sales tax revenue for the county.
Columbiana County comes in as the third most permitted county in the Utica with 63 permitted wells. Columbiana County has seen a number of investments, including the M3 gas processing plant and several new businesses moving into their business park thanks to Utica Shale development. Over the past year, Columbiana County has increased sales tax revenue from $8,789,095.70 in 2011 to $9,808,162.52 in 2012, making a growth of nearly 11% in sales tax revenue for the county.
Jefferson County comes in as the fourth most permitted county in the Utica with 32 permits. Over the past year, Jefferson County has become home to field offices for Hess Energy as well as 11 new businesses that have relocated to the county to take part in the Utica Shale. These businesses have hired many local residents and continue to offer opportunities for the community. In fact there are more than 1,000 more Jefferson County residents employed this year than in 2011. In the past year, Jefferson County has not only attracted new businesses to the region, but has increased their sales tax revenues from $6,572,958.48 in 2011 to $7,322,109.62 in 2012 representing an increase of 10% sales tax growth.
Guernsey County rounds out the top five most permitted county coming in at 24 permits issued in the county. Guernsey County has seen promising results coming from the southern portion of the county from Anadarko, as well as exciting results coming from the eastern portion of the county from companies like PDC and Gulfport. Utica Shale development has helped transform long standing local staples like Buckeye Water Services and bring in new companies like Nabor’s well services. In the past year Guernsey County has increased their sales tax revenues from $4,072,011.88 in 2011 to 4,637,916.27 in 2012, marking a 12% increase in sales tax collection for the county.
Noble and Monroe Counties should receive an honorable mention when discussing the positive effects shale development has had on our local economies. Both counties come in sixth place with 22 permits for Utica Shale development. In Noble County they have seen a 20% growth seeing their sales tax revenue grow from $726,578.72 in 2011 to $908,412.63. Monroe County has seen even more growth in sales tax revenues in their county. They have increased their sales tax revenue 23%, going from $1,066,456.04 in sales revenue in 2011 to $1,376,950.39 in 2012.
These seven counties are a true testament that Utica Shale development is helping refresh a stale economy that has been prevalent for far too long in eastern Ohio. Companies and landowners are investing, providing the need for more jobs in the region as well as providing much needed revenue for local governments. With an average of 13% percent growth in these seven counties, it is hard to ignore the fact that Utica Shale development is providing jobs, wealth and revenue for eastern Ohio.