Gov. Kasich revising Ohio drilling-tax plan

COLUMBUS (AP) — Gov. John Kasich is working to line up support in Ohio’s drilling heartland for his proposed tax increase on oil and gas drillers by offering to send a quarter of proceeds back to Appalachia.

The Republican governor initially proposed raising oil and gas severance taxes to 4 percent to fund a statewide income-tax cut. Legislators, energy companies and economically challenged eastern Ohio counties balked, forcing the administration to regroup.

Republican state Rep. Ross McGregor likens the new proposal to earmarking a portion of Ohio Turnpike bond proceeds to northern Ohio. It raises the severance-tax rate to 4.5 percent and sends 25 percent of revenues to 33 Appalachian counties. The rest would still go to statewide income-tax reductions.

Its leader says Ohio’s oil and gas association remains strenuously opposed.