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Santa Barbara County Severance Tax Proposed
Monday Morning Report, November 7, 2011
The Santa Barbara County Board of Supervisors will be voting on a report by county staff to begin the process of putting a severance tax on oil production. If the Board of Supervisors decides to move forward, a final vote will need to take place by July 2012 for an initiative to be placed on the November 2012 ballot.
The report put together by county staff lists several cities as having severance taxes from $0.40 to $0.60 per barrel of oil as a starting point for possible tax rate discussions. At these rates the County believes it could raise between $1.5 to $3.0million per year depending on oil price fluctuations. California is the only state that allows local jurisdictions to impose severance taxes. If an oil severance tax was passed by Santa Barbara County voters, it would be the first severance tax imposed by a county in California.
One of the action items in the report for the Board of Supervisors to consider is a survey of likely voters to gage the amount of support and opposition to a proposal. The Santa Barbara Taxpayers Association (of which CIPA is a member) has beaten the County to the punch with a poll conducted last week. It shows the tax is supported by only 45% of county voters with 41% opposed.