California is the only oil-producing state that subsidizes oil-extraction companies by not imposing a state wellhead tax. This costs California about $2 billion each year in lost revenue.
The California Legislature and Governor Brown should draft, pass & sign state bill(s) that will correct this loss of state revenue. These bills can be modelled after the laws in other states, such as Texas, which require payments to their state based on oil and gas amounts extracted from any lands in that state.
Why is this important?
California is the only oil-producing state that subsidized oil-extraction companies by not imposing a state wellhead tax. This costs California about $2 billion each year in lost revenue.
