CA Will Vote To Tax Oil Production To Fund Alternative Energy - Reuters

[hatrack]

LOS ANGELES - Californians will vote in November on a ballot measure proposing a constitutional amendment that would tax oil production to fund a range of alternative energy efforts, Secretary of State Bruce McPherson said Wednesday.

The initiative's supporters gathered 1,143,365 signatures, qualifying it for the ballot, McPherson's office said. Supporters -- led by Californians For Clean Alternative Energy -- and opponents -- led by Californians Against Higher Taxes -- are expected to wage an intense battle for votes leading up to the Nov. 7 election.

The two sides set out arguments that are sure to fill California radio and television advertisements ahead of the November election, which will also pit Republican Gov. Arnold Schwarzenegger versus Democratic challenger Phil Angelides, the state treasurer.

Supporters are painting the vote over the ballot measure as between friendly environmentalists who want to cut energy prices versus polluting Big Oil and corporations seeking to drain consumers' wallets. Opponents say the initiative is a sheep in wolves' clothing that if passed will create an unchecked bureaucracy and not only higher taxes but also higher fuel prices in the end.

EDIT

http://www.planetark.org/dailynewsstory.cfm/newsid/36943/story.htm

[pooja]

1. Who cares... take some money from them and

invest in a better plan...If they can get us to the moon, the can find alternative fuels.. and in CA every thing is so expensive anyway.. Who would know the difference.

[xxqqqzme]

2. those poor oil companies w/ such a tax burden

What they really need is a government funding of oil development.



Oh wait, they already pay nothing AND get our tax dollars. Pigs at the trough

[pinto]

3. Brief overview of Initiative (CA SOS)

Initiative Constitutional Amendment and Statute
1196. (SA2005RF0138, Amdt. #2-S)

Alternative Energy. Research, Production, Incentives. Tax on California Oil. Initiative Constitutional Amendment and Statute.
Summary Date: 02/09/06 Circulation Deadline: 07/10/06 Signatures Required: 598,105

Proponent: James C. Harrison and Thomas A. Willis c/o Remcho, Johansen & Purcell [phone]


Establishes $4 billion program to reduce oil and gasoline usage by 25%, with research and production incentives for alternative energy, alternative energy vehicles, energy efficient technologies, and for education and training. Funded by tax of 1.5% to 6%, depending on oil price per barrel, on producers of oil extracted in California. Prohibits producers from passing tax on to consumers. Program administered by California Energy Alternatives Program Authority. Prohibits changing tax while indebtedness remains. Revenues excluded from Proposition 98 calculations and appropriation limits.

Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: New state revenues annually – depending on the interpretation of the measure’s tax rate provisions – of either about $200 million or about $380 million from the imposition of a severance tax on oil production, to be used to fund a variety of new alternative energy programs. Reductions of unknown amounts in: local revenues from property taxes paid on oil reserves, potentially partially offset by state payments to schools to make up their revenue loss; state revenues from income taxes paid by oil producers; and, potentially, state and local revenues from gasoline and diesel excise and sales taxes. (SA2005RF138, Amdt. #2-S.)

http://www.ss.ca.gov/elections/elections_j.htm

[lindisfarne]

4. Let's see if it passes. We'll also be voting on "Minor Abortion Waiting

Period" so the Repugs will be out in full force. (Waiting Period and Parental Notification Before Termination of Minor's Pregnancy)