Sacramento, CA: The GCVCC has taken a position of opposition to SB 246. The position is taken based on the GCVCC Platform position(s) found under “Economic Development and Business Regulations”.
GCVCC Legislative Team: At this point the Chamber opposes any bill that is going to adversely impact the cost of gasoline at the pump. California already has some of the highest gas prices in the country, and Coachella Valley residents bare an even higher burden owing to our need for AC use and the impact it has on fuel efficiency.
CalChamber Analysis: SB 246 seeks to impose a targeted 10% severance tax on oil and gas operators for deposit into the General Fund.
The CalChamber has deemed SB 246 a job killer because it unfairly imposes a targeted tax on oil and gas—an industry already saddled with layers of taxes.
Californians pay the highest consumer prices for gas in the nation, at $3.43 per gallon compared to the national average of $2.58 per gallon. SB 246 would certainly increase consumer prices even more.
This tax increase also imperils jobs throughout the oil and natural gas industry, with consumers likely modifying their behavior to offset the hike in gas prices.
The 2019–2020 state budget enjoys a $20+ billion cushion of surpluses and reserves, and the budget for 2020–2021 is forecast to include multibillion-dollar reserves as well. There is therefore no need for additional revenue that justifies increasing the cost of living on California consumers, who are already struggling with high costs for energy, gas and housing.