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Proposition LA-O Tax on Oil Companies City of Los Angeles Ordinance - Majority Approval Required Official Results
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Index of all Measures |
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Information shown below: Summary | Fiscal Impact | Official Information | Impartial Analysis | Arguments | | |||||||
In order to fund general municipal services, including but not limited to such matters as police protection and crime suppression services, fire prevention and suppression services, park and recreation facilities, and general improvements throughout the City, shall an ordinance be adopted to impose a tax on oil producing businesses of $1.44 per barrel of oil produced in the City of Los Angeles?
Currently, the City of Los Angeles does not impose a tax on each barrel of crude oil extracted within the City. Some California cities do collect such a tax from oil producing businesses. THE PROPOSAL: This measure would establish a tax of $1.44 per barrel of crude oil extracted in the City of Los Angeles to be paid by oil producing businesses. The tax rate would be adjusted up or down yearly according to changes in the consumer price index. These tax revenues would be used to fund general City services. A YES VOTE MEANS: You want to impose a tax of $1.44 per barrel of crude oil extracted within the City to be paid by oil producing businesses. A NO VOTE MEANS: You do not want to impose a tax of $1.44 per barrel of crude oil extracted within the City to be paid by oil producing businesses.
This measure would establish a tax of $1.44 per barrel for oil extracted from each well in the City of Los Angeles. The tax will be applied quarterly on each barrel of oil extracted during that quarter. The tax will be a fixed rate and will not fluctuate based on the price of oil. The rate of $1.44 per barrel is equivalent to a 1.8 percent price per barrel tax, assuming an $80 per barrel price. The tax rate would be adjusted yearly according to changes in the consumer price index. Funds generated by the oil production tax would be used for general City services, including police, fire and parks and recreation services. This measure will become effective if approved by a majority of voters.
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L.A. City Council Files
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Arguments For Proposition LA-O | Arguments Against Proposition LA-O | ||
YES ON PROPOSITION O GENERATES REVENUE FOR CITY SERVICES
Los Angeles sits atop one of the largest oil reserves in the country. Oil companies make billions each year drilling oil from the wells within the city's boundaries, including: Venice, Wilmington, Sherman Oaks, Downtown, Century City, and Cheviot Hills. There are 55 known oil fields in the Los Angeles area with over 30,000 producing wells, yet the city and residents have not received any direct benefits, unlike other cities in Southern California. Drilling for oil in our neighborhood lowers property values, ruins our air quality and environment, adds to traffic congestion, and negatively impacts our quality of life. Taxing wealthy oil companies for drilling in Los Angeles will generate millions for the City of Los Angeles to use on essential city services. YES ON PROPOSITION O ASSURES LOS ANGELES RESIDENTS THEIR FAIR SHARE Other cities in Southern California, such as Beverly Hills, Inglewood, Long Beach, and Seal Beach, have imposed an oil extraction tax on these wealthy oil companies to make up for the negative impact they create. A tax of only $1.44 per barrel of oil- far less than half the price of one gallon at the pump- would raise over $4 million in new revenue for the city to pay for police and fire services, programs at our parks and libraries, as well as other essential city services. Proposition O will hold oil companies accountable for drilling in our neighborhoods, increase revenue to protect critical city services, and will not authorize more drilling in our great city. Vote Yes on Proposition O.
JAN PERRY
BERNARD C. PARKS
PAUL KORETZ
BRUCE SAITO
Proposition O will RAISE TAXES AT THE WORST TIME. We are suffering with record unemployment levels. Prop. 0 would CAUSE MORE LAYOFFS and WON'T SOLVE THE CITY'S BUDGET PROBLEMS. Vote No on Proposition O.
BILL LA MARR
JOEL FOX
JULIAN CANETE
DR. ZYRA MCCLOUD
MARIA LUISA VELA
President
KENNY JONES
HUGO MERIDA
M C TOWNSEND
EARL "SKIP" COOPER | Vote NO on Proposition "O" to stop a tax increase, protect small local businesses, avoid higher gas prices and force the City Council to reduce its reckless spending.
Despite its misleading language, there are NO GUARANTEES this new tax would be used to fund essential public services like police and fire protection. A LOOPHOLE in the proposed law allows the City Council to spend millions on anything they want, including higher salaries for city employees with no accountability to taxpayers. Increasing taxes on oil production means HIGHER GAS PRICES AT THE PUMP. Don't be fooled. Prop. "O" is NOT a tax on Big Oil companies. It's a tax largely directed at small, local businesses and individuals, forcing them to reduce or shut down production altogether. That means fewer jobs and LESS MONEY FOR LOS ANGELES. And Prop. "O" would give an enormous tax break to foreign companies. Because the new tax only applies to production in Los Angeles, oil imported from places like Iraq and Saudi Arabia would be exempt. Unemployment in Los Angeles is already among the country's highest. This is the worst time to INCREASE TAXES on already STRUGGLING LOCAL BUSINESSES. It will just cause companies to invest elsewhere, leading to MORE LAYOFFS and reducing revenues to the city. The city's Controller has identified millions in waste and overspending. Los Angeles City Councilmembers use our tax dollars to pay themselves the HIGHEST SALARY IN THE NATION. The new energy tax will punish Los Angeles consumers, small businesses and individuals, kill jobs and cost the city revenues. Rather than raise taxes, the City Council should reduce wasteful, out-of-control spending and cut back things like six-figure salaries and big pensions for city bureaucrats. Say NO to HIGHER TAXES. Vote NO on Proposition "O".
BILL LA MARR
JOEL FOX
JULIAN CANETE
DR. ZYRA MCCLOUD
HUGO MERIDA
Chair
M C TOWNSEND
President/CEO
EARL "SKIP" COOPER
MARIA LUISA VELA
Prop. O will not raise the price of gas. There are 55 known oil fields in the Los Angeles area, including, Sherman Oaks, Venice Beach, and Wilmington, with over 30,000 producing wells. Los Angeles residents have not received any direct benefits, unlike other cities in Southern California. Beverly Hills, Inglewood, Long Beach, and Seal Beach have all benefited from an oil tax on oil companies. Yes on Prop. O holds oil companies accountable for drilling in our neighborhoods, lowing property values, damaging our air quality and environment, and adding to traffic congestion. Yes on Prop O to protect public safety, the environment, and our quality of life.
JAN PERRY
BERNARD C. PARKS |