Each year, oil and gas producers and royalty interest owners are required to submit Ohio Department of Taxation (“ODT”) Forms DTE-6 and DTE-6A to respective county auditors. Beginning in 2016 and pursuant to changes put forth by ODT, submission of these forms will no longer be required.
For preparation of local property tax bills on oil and gas production, county auditors will now rely on production information submitted on Ohio Department of Natural Resources (“ODNR”) Form 10. This will be for production reported in 2016, payable in 2017. Forms DTE-6 and DTE-6A will no longer be accepted after January 1, 2016.
With oil and gas production data now being submitted to the county auditor from ODNR Form 10, there will be three main changes in the way that the assessed value is allocated to each producer:
1. All production (100%) will be allocated to the primary producer and payment of real property tax will be the sole responsibility of the producer. There will no longer be any royalty owner interest on parcels maintained by the county auditor.
2. The assessed value of the production from horizontal wells will be allocated to each tax district that is crossed by a lateral line. This may result in one or more parcel numbers, and therefore tax bills, per each individual well (API). This will ensure proper distribution of taxes collected on each respective well.
3. If a well is sold during a production year, the owner of record as of January 1 (lien date) of the following year will be assigned 100% of the assessed value. This now aligns oil and gas production billing with all other real property billings.
Tax bills for well production will be mailed to the address that each producer has on file with ODNR. Since the data necessary to assess the value of the production and mail out the tax bills will all be coming from the ODNR database, it is imperative that every effort be made by each producer to submit complete and accurate information on Form 10.ODNR Division of Oil and Gas Resources Home Page
If you have questions regarding the information on this page please call the Wayne County Auditor's Office at 330.287.5430.