(COLUMBUS) -- Ohio House Democrats are proposing a new tax on oil and natural gas production as part of a broader push to lower utility costs for residents.
According to WCMH, the plan would create a seven percent severance tax based on the market value of oil and gas extracted in the state. Revenue would be used for environmental cleanup and direct consumer relief.
The proposal includes a 150-dollar annual utility bill credit for Ohio customers, with supporters saying it would help families cope with rising energy costs while ensuring communities where drilling happens see more direct benefits.
House Minority Leader Dani Isaacsohn says the measure is designed to return more value to areas impacted by extraction and give ratepayers immediate relief.
Republican leaders are pushing back.
House Speaker Matt Huffman has questioned whether the tax could reduce production and ultimately raise costs, while also raising concerns about how the annual payments would be distributed.
The proposal is part of a broader Democratic affordability push expected to continue in the coming weeks.