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Ohio Oil and Gas Real Property Taxation

Ohio taxes oil and gas reserves as real property. All property taxes are charged and collected at the county level and support schools, townships, municipalities, counties, libraries, and special service districts. Once production of the oil or gas reserve begins, its taxable value is determined by the application of an appraisal formula set forth in RC 5713.051, which results in multipliers used to establish value based on a well’s production.

The Ohio Department of Natural Resources, Division of Oil and Gas Resources Management (“ODNR”), and the Ohio Department of Taxation have partnered to develop a system that relieves oil and gas producers of the burden of filing tax returns in every county in which they operate. This system uses production data already filed with ODNR for regulatory purposes to calculate taxable values for each operating well. Those values are provided to county auditors electronically to prepare tax bills.

The final values for tax year 2021, to be collected in calendar year 2022, are provided below. Any challenges to these values may be made by filing a complaint with the board of revision of the county in which the well is located. Complaints for tax year 2021 may be filed until March 31, 2022, or the last day first-half taxes may be paid without a penalty, whichever date is later. Questions about taxes should be directed to the auditor of the county where the well is located. A link to the directory of county auditors is provided below.