Texas Taxes = $14.33/barrel | California only gets $4.22/barrel
Sacramento - Assemblymember Pedro Nava (D-Santa Barbara) was joined Monday by educators, healthcare providers, nurses, seniors, organized labor, and environmentalists to promote Assembly Bill 1604 – the Oil Industry Fair Share Act. Representatives from the Congress of California Seniors, the California Nurses Association, the California Teachers Association, the California Federation of Teachers, the California School Employees Association, and Environment California, all advocated in support of the oil severance tax.
Currently, according to an analysis by the Board of Equalization, California taxes oil at 1/3 the rate of Texas. Texas’ taxes amount to about $14.33/barrel of oil, and in California the taxes amount to about $4.22/barrel. Nava’s legislation imposes a modest 10% charge on the gross value of each barrel of oil produced in California. This tax will provide approximately $1.5 billion in additional revenue to the California General Fund that can be used for public safety, education, health services, and other vital programs.
“Compared to other states, California oil companies are getting a free ride. California is the only major oil producing state that does not charge a severance tax on oil extraction. It is time to catch up with Alaska, Texas, Alabama, and Arkansas. We need to collect the people’s share of this potential revenue source by getting oil companies to pay their fair share,” said Nava.
Here are links to audio of Assemblymember Nava in English:
Assemblymember Nava says the proposed oil severance tax will raise $1.5 billion in new revenues. mp3
Assemblymember Nava says California is the only oil-producing state in the U.S. that doesn’t levy a severance tax on oil extraction. mp3
Assemblymember Nava says consumers should not see an increase in gas prices as a result of the proposed oil severance tax. mp3
Assemblymember Nava says the public should know who is responsible for keeping common-sense revenues out of state coffers. mp3
Here are links to audio of Assemblymember Nava in Spanish:
El asambleísta Nava dice que la industria del petróleo es la única que obtiene grandes ganancias y por esa razón no necesitan explorar por nuevos yacimientos en las costas de California. mp3
El asambleísta Nava dice que las compañías petroleras se oponen a pagar un impuesto que es justo. mp3
El asambleísta Nava dice que no cree que las compañías petroleras vayan a bajar la producción de gasolina porque la economía de California esta basada en el petróleo. mp3
El asambleísta Nava dice que la gente debe saber que los republicanos no respaldan los programas que ayudan a la comunidad Latina. mp3
CONTACT: John D. Mann (916) 718-7420