Are cash-starved state legislatures taxing the energy industry as much as they could?
Barry Rabe is director of the University of Michigan's Center for Local, State and Urban Policy. He's one of the co-authors of a new report that tracks how states are taxing thousands of new oil and gas wells.
Rabe says so-called severance taxes arose from the question, ‘What happens when you take a non-renewable natural resource and remove it for some kind of use?’
He says it's an issue some states are facing for the first time, including North Dakota, which is booming because of oil. Rabe notes that 65% of North Dakota’s budget will come from energy taxes.