State Lawmaker Unveils Bill To Tax Oil Production In California

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(Sacramento, CA)
Monday, October 26, 2009
Oil companies would have to pay a tax on each barrel of crude they produce in California under a bill unveiled at the state Capitol today (Monday). 

Capital Public Radio's Steve Shadley reports...
 The measure was written by Democratic Assemblymember Pedro Nava of Santa Barbara...
Nava:    “The oil companies in California are getting a free ride. California is the third largest oil producing state. But, we are the only major oil producing state that does not charge a severance tax...”
Nava says a ten-percent tax on oil production would raise one-and-a-half-billion dollars each year. 

He says the money would help offset some recent state budget cuts that target education and programs for the elderly and needy. 

And, Nava says his bill would prevent oil producers from passing the tax on to consumers at the pump. 

Oil companies are launching a campaign to defeat the bill. 

Rock Zierman is CEO of the California Independent Petroleum Association. He says they’re already paying a pre-production tax on California oil and he’s worried the measure will cost the state thousands of jobs.