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Kern County oil, government, civic and economic development leaders unanimously denounced a proposed oil severance tax as much more than just a bad idea.
They said it will deal a crippling blow not only to the oil industry in western Kern County but also to the county’s ability to deliver essential services to its citizens in Ridgecrest and California City as well.
That’s why they are going to Sacramento next week to speak out against a bill that would impose a 12.5 percent oil tax proposed by Assemblyman Alberto Torrico.
They will be traveling on the “Job Saver Express” to attend hearings on the bill, AB 656, by the Assembly Revenue and Taxation Committee to speak against the tax.
“This tax is aimed right at the heart of our economy,” Kern County Board of Supervisors Chairman Ray Watson said.
The effects, if the tax is passed, will be widespread.
“It’s not just the Westside,” Watson said. “Everyone in the county is going to be affected.”
Watson has written a letter to Assemblyman Charles Calderon, chairman of the Revenue and Taxation committee warning of the effects it would have through the county.
“The comic shockwave would spread from local oilfields, shaking through families and businesses everywhere in Kern County, driving down local sales and property taxes and further straining County health and social services,” Watson warned Calderon.
The proposed tax would in effect lower the value of the oil underground and lower property tax values of the oil-bearing land.
That means even less money for education and other essential public services the county provides when the depressed economy has already forced cuts.
Watson estimated the tax would cost the county 7,000 jobs in the oil industry in addition to millions in tax revenue.
The industry is already bracing for the potential impact.
Les Clark Jr., executive vice president of the Independent Oil Producers Agency, said one oilman told him he’s looking at shutting in a lot of wells.
I know one of the oil folks who said if this goes through there will probably be 200 wells shut in,” Clark said.
Ron Jacobs owns Pro tool, a firm with 57 full time employees.
“AB 656 would put many of those jobs if not my entire company at risk,” he said
But the damage would go far beyond the oilfields, said Richard Chatman, President of the Kern County Economic Development Corporation.
“This is not only a job killer. It’s lethal to our entire economic development efforts in Kern County,” Chatman said. “Oil has kept us afloat during these dry times.”
Kern County oil, government, civic and economic development leaders unanimously denounced a proposed oil severance tax as much more than just a bad idea.
They said it will deal a crippling blow not only to the oil industry in western Kern County but also to the county’s ability to deliver essential services to its citizens in Ridgecrest and California City as well.
That’s why they are going to Sacramento next week to speak out against a bill that would impose a 12.5 percent oil tax proposed by Assemblyman Alberto Torrico.
They will be traveling on the “Job Saver Express” to attend hearings on the bill, AB 656, by the Assembly Revenue and Taxation Committee to speak against the tax.
“This tax is aimed right at the heart of our economy,” Kern County Board of Supervisors Chairman Ray Watson said.
The effects, if the tax is passed, will be widespread.
“It’s not just the Westside,” Watson said. “Everyone in the county is going to be affected.”
Watson has written a letter to Assemblyman Charles Calderon, chairman of the Revenue and Taxation committee warning of the effects it would have through the county.
“The comic shockwave would spread from local oilfields, shaking through families and businesses everywhere in Kern County, driving down local sales and property taxes and further straining County health and social services,” Watson warned Calderon.
The proposed tax would in effect lower the value of the oil underground and lower property tax values of the oil-bearing land.
That means even less money for education and other essential public services the county provides when the depressed economy has already forced cuts.
Watson estimated the tax would cost the county 7,000 jobs in the oil industry in addition to millions in tax revenue.
The industry is already bracing for the potential impact.
Les Clark Jr., executive vice president of the Independent Oil Producers Agency, said one oilman told him he’s looking at shutting in a lot of wells.
I know one of the oil folks who said if this goes through there will probably be 200 wells shut in,” Clark said.
Ron Jacobs owns Pro tool, a firm with 57 full time employees.
“AB 656 would put many of those jobs if not my entire company at risk,” he said
But the damage would go far beyond the oilfields, said Richard Chatman, President of the Kern County Economic Development Corporation.
“This is not only a job killer. It’s lethal to our entire economic development efforts in Kern County,” Chatman said. “Oil has kept us afloat during these dry times.”
Kern County already has a high unemployment rate and cutting 7,000 more jobs would compound the problem.
Moreover, Watson and others pointed out, it’s an unfair tax that places a large burden on a small portion of the state.
Kern County produces 70 percent of the oil and would bear a huge share of the tax.
Taxpayer Advocate Michael Turnipseed said it just doesn’t make sense.
“When is the legislature going to learn that you can’t solve the state’s deficit by raising taxes that eliminate jobs?” he asked. “We need to kill this bill so we can protect our jobs and expand our oil industry.”
