NORWICH - Chenango County lawmakers adopted a resolution yesterday opposing a New York State’s severance tax on natural gas and oil production.
The resolution was the result of a joint meeting between Madison and Chenango county officials last week. The Madison County Legislature was expected to pass the measure this week.
Chenango and Madison counties follow in the footsteps of the New York Farm Bureau, Unshackle Upstate, and Greater Binghamton Chamber of Commerce who have all expressed opposition to the severance tax. Though it was ultimately left out of the state’s budget, a five percent tax was suggested by downstate legislators with support from the New York State Department of Environmental Conservation (DEC).
“Any new severance tax on oil and natural gas production under consideration in the state’s legislature that would shift revenue to the state’s general fund from local governments that feel the most impact would only further increase the burden of such local adverse impact,” stated the motion which was offered by Chenango County Natural Gas Committee Chairman Peter C. Flanagan, D-Preston.
“We are opposed to the state just reaching in there and taking 5 percent for their ‘needs’,” he said. “We are looking to address our local issues.”
As it stands, counties receive less than 1 percent under New York’s current real property tax system.
Supervisor James Bays, D-Smyrna, who seconded Flanagan’s motion, said the legislature in Albany would attempt to include such a tax in the budget again. “The potential for millions in revenues is too much to overlook,” he said.
The resolution calls for the state’s legislative committees and the New York Oil and Gas Advisory Board to convene discussions “immediately” with municipal, town and county officials of areas where there is active gas well development as well as with property owners groups, the Farm Bureau, and other industry groups to evaluate the current system of fuel production taxation in the state and to determine the most appropriate system for addressing local needs and impacts arising from the exploration, drilling and production of natural gas.