SHALE TAX REVENUE ESTIMATE REPORT
The Shale Tax Revenue Estimate Report is an annual Service that provides Quarterly reports of estimated tax revenue from horizontal fracture wells for all School Districts, County governments and Local governments ln Ohio’s shale region.
Estimates of tax revenue are available for:
- School District Boards/Administration
- County Commissioners
- Township trustees
- City and village Councils/Administration
There are three (3) main reasons that all jurisdictions in Ohio's Shale Region need the Estimator Report.
Quarterly Revenue Estimates
Quarterly estimates of revenue help School District and Governments budget and strategically plan tor the Increased revenue tram shale oil & gas wells
Each Quarterly report contains a running revenue total for each production year based on the sum or all the quarterly reports for that year, The 4lh Quarterly report contains an annual estimates for that production year
Estimates of Revenue Up to 2 Years Before the Tax Revenue is Received
Oil & gas at a local level is taxed as real estate. Unlike most real estate in Ohio, oil & gas taxes are collected in any given year on the value of the production that occurred two years prior. For example, oil & gas production in 2017 will be not be taxed and collected until 2019.
Accurate estimates of revenue 1-2 years before it is received allows county and local officials to be the best stewards of this new revenue stream. It allows your organization to budget for this revenue and strategically plan for its use
Independently Monitor Shale Production in Your Jurisdiction
Just as valuable as having accurate estimates of revenue well in advance is knowing when that same revenue source may be slowing down or ending. The Shale Tax Revenue Estimate Report is the “canary in the coal mine" for your jurisdiction. The sooner your jurisdiction knows when production is slowing, the sooner plans can be made lo adjust the budget and strategic plan.
The service costs $30 per well per year.There is a minimum charge of $300 per jurisdiction per year which includes upto 10 wells. Each oil & gas well over 10 is charged at $30 per year. Minimum service term is one (1) year.
WellRev Ohio has developed a custom database engine for the creation of estimates that are as close to actual revenue as possible. Using the formula provided by the Ohio Department of Taxation, estimates of the assessed value are developed using the most currently available inputs of production and value of oil & gas. These estimates of assessed value are then broken down by tax district, then the appropriate tax rates are applied to derive a final estimate of revenue.