Californians for Responsible Economic Development pushing ballot initiative to create oil and gas severance tax
by Andy Cohen
North Dakota does it. Louisiana does it. Florida too, and Alaska. Even Texas has an oil and gas severance tax, which largely funds state government there. Alaska is almost entirely dependent on their oil severance tax.
But in California, no such tax exists. California, unlike just about every other oil producing state in the U.S., practically gives away its natural resources to private industry. That could change, however, by way of the 2014 midterm elections.
The group Californians for Responsible Economic Development hopes to bring an initiative to California voters in 2014 that will impose a 9.5% severance tax on any and all oil and natural gas extracted from California land or coastal waters, a fairly modest proposal in comparison to other states. The fee in North Dakota, for example, is 11.5%. In Louisiana the rate tacks up to 12.5%. In Alaska, oil companies are dinged at the rate of 25-50% of the net value of the oil and gas extracted. California is clearly missing out on a massive revenue opportunity for state coffers. [Read more…]










