(California) Deep cuts likely in updated state budget

This bill would impose an oil and gas severance tax on and after
January 1, 2010, upon any producer for the privilege of severing oil
or gas from the earth or water in this state for sale, transport,
consumption, storage, profit, or use, as provided, at a specified
rate. The tax would be administered by the State Board of
Equalization, and would be collected pursuant to the procedures set
forth in the Fee Collection Procedures Law. The bill would require
the board to deposit all tax revenues, penalties, and interest
collected pursuant to these provisions, except as specified, in the
California Higher Education Fund.
Because this bill would expand application of the Fee Collection
Procedures Law, the violation of which is a crime, it would impose a
state-mandated local program.
(3) This bill would result in a change in state taxes for the
purpose of increasing state revenues within the meaning of Section 3
of Article XIII A of the California Constitution, and thus would
require for passage the approval of 2/3 of the membership of each
house of the Legislature.
(4) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(5) This bill would take effect immediately as a tax levy.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.