County supports Smyrna’s request for tax on natural gas production

OTSELIC – While not asking state legislators to revise home rule law on behalf of the entire county, the Chenango County Board of Supervisors did unanimously agree Monday to support a similar request made recently by the Town of Smyrna.

The change would allow municipalities to collect a tax on natural gas sales from local wells. An exploration and development company has been conducting seismic testing and drilling wells in the northern regions of Chenango County over the last few years.

The Town of Lebanon in Madison County and the Town of Otselic have also asked the state’s legislators to permit such a tax. County board chairman Richard B. Decker said yesterday’s action was “just supporting the town of Smyrna’s request.”

Chenango County Supervisor James B. Bays, D-Smyrna, has called the tax an “enhancement tax.” Local governments would use it to afford the costs associated with drilling and exploration, wear and tear on highways, community safety needs, municipal employee training and equipment needs.

“We hope to draw off compensatory revenues toward those kinds of needs that we see developing,” he said.