Chevron has filed a lawsuit to resolve whether the new alternative business license tax calculation imposed on the Chevron Richmond Refinery and other Richmond-based manufacturers by the recently enacted Measure T violates state and federal law.
According to Chevron, “Measure T amended the city’s business license tax and – effective for 2009 – requires Chevron to pay an annual business license tax based on the value of crude oil processed at Chevron’s Richmond Refinery.
Chevron also announced it will indefinitely delay the construction of its Continuous Catalyst Reformer (CCR) Project. The CCR is one of four components of Chevron’s recently permitted Energy and Hydrogen Renewal
Project at the Richmond Refinery and is used to improve the octane of gasoline.
While Chevron’s press release stressed the economic impact of such a tax, it was couched in terms of reprisal. Unfortunately, Chevron did not present any solid legal argument against the very lawfulness of Measure T which is its best case that taxpayers would understand. Chevron PR dropped the ball on this one.
{ 3 comments… read them below or add one }
The Contra Costa Taxpayers Association and the California Taxpayers’ Association both objected to Measure T when it was put on the ballot by a group of citizens. Tax law is complex and this group did not seek expert legal advice when they drafted it. I asked during a debate and was told they had written it themselves without legal help.
This is the first time that a city has sought to circumvent the State Tax and Revenue Code that prohibits a tax on inventory by taxing the value of inventory used in the manufacturing process. There are other legal issues as well, but like all good tax laws, they are both complex and boring.
We are delighted that Measure T will be taken to court. Bad tax laws can spread to other jurisdictions in their quest for new sources of revenue. It is better that Measure T be stopped before it has a chance to be adopted elsewhere.
Kris Hunt
Executive Director
Contra Costa Taxpayers Association
I think Richmond desperately needs the Chevron jobs. No wonder these companies are abandoning the U.S. in droves. Instead of cutting corporate taxes (like much of the world), Obama is going to raise them. He wants to destroy the capitalist system.
~ EDITOR ADDS — And as the current system goes down it may well take Richmond and CoCo County with it. Do we have enough lifeboats?
Isn’t it amazing that a corporation would object to paying more taxes?
I seem to recall all my conservative friends…well friend… OK occasional game buddy telling me over and over again: “Corporations do not pay taxes it is just passed on to the consumer!” Astounding news, I am filled with shock and awe.