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Posted by: mturnipseed on 09/03/2009 11:14
Updated by: mturnipseed on 09/03/2009 11:14
Expires: 01/01/2014 12:00
Opposition to Split Roll and Oil Severance Tax Proposals
Mr. Gerald Parsky, Chairman
Commission on the 21st Century Economy
c/o State of California Department of Finance
915 L Street, 8th Floor
Sacramento, CA 95814
Dear Chairman Parsky,
The Kern County Taxpayers Association is steadfastly opposed to the split roll tax proposal being considered by the Commission for a 21st Century Economy. A split roll tax will hurt struggling small businesses, raise costs for renters and consumers, cost tens of thousands of jobs and hinder California’s economic recovery...
In addition, KERNTAX adamantly opposes implementation of an oil severance tax. An oil severance tax would create a great deal of volatility if it is a part of the state revenue structure. Revenues would rise and fall as world oil prices rise and fall. Over the past 18 months, oil prices have fluctuated from approximately $45 per barrel to $140 per barrel. California already ranks sixth among oil-producing states in taxing oil production; this proposal would make California by far the highest taxing state. More specifically, seventy percent of California's oil production occurs in Kern County. This proposed tax would have a devastating effect on the finances of local government in the county, which is already reeling from the state's raids on local revenues.
Mr. Gerald Parsky, Chairman
Commission on the 21st Century Economy
c/o State of California Department of Finance
915 L Street, 8th Floor
Sacramento, CA 95814
Dear Chairman Parsky,
The Kern County Taxpayers Association is steadfastly opposed to the split roll tax proposal being considered by the Commission for a 21st Century Economy. A split roll tax will hurt struggling small businesses, raise costs for renters and consumers, cost tens of thousands of jobs and hinder California’s economic recovery.
If taxes are raised on business property owners, those costs will be passed on to tenants like neighborhood small businesses that will in turn be forced to cut jobs or raise prices on consumers. The costs of higher property taxes will also be passed on to seniors and others who rent their homes and to working families who are trying to make ends meet.
Recent studies show that a split roll tax would have devastating impacts on the state. A study by former California state legislative analyst Bill Hamm finds that even a one percent increase in the business property tax will cost 43,000 jobs. And study conducted in February by the Center for Government Analysis found that a split roll tax would disproportionately harm Latino, women and minority-owned businesses.
In order to push a split roll tax and chip away at Proposition 13, proponents falsely claim that California businesses are not paying their “fair share” of property taxes. The reality is that California business, already paying some of the highest taxes of any state, have historically had their property assessed at a higher rate than residential property. For example, the state Board of Equalization shows that business property is assessed much closer to market value. In fact, since 1988, business property has been assessed, on average, at 75.1 percent of market value, while homeowners’ property has been assessed at 66.3 percent of market value. And in 2006-07, tax assessments on non-homeowner property subject to Proposition 13 were $625.8 billion higher than those on homeowner property. A split roll tax would hurt small business and consumers and make our economy worse.
In addition, KERNTAX adamantly opposes implementation of an oil severance tax. An oil severance tax would create a great deal of volatility if it is a part of the state revenue structure. Revenues would rise and fall as world oil prices rise and fall. Over the past 18 months, oil prices have fluctuated from approximately $45 per barrel to $140 per barrel. California already ranks sixth among oil-producing states in taxing oil production; this proposal would make California by far the highest taxing state. More specifically, seventy percent of California's oil production occurs in Kern County. This proposed tax would have a devastating effect on the finances of local government in the county, which is already reeling from the state's raids on local revenues.
Please oppose both measures when it comes before you in the coming weeks.
Thank you for your consideration.
Michael Turnipseed
Kern County Taxpayers Association
331 Truxtun Avenue
Bakersfield, CA 93301-5313
661-322-2973 Office
michael@kerntaxpayers.org
www.kerntaxpayers.org
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