Oil Severance Tax Law (SB 1017) Dies in the Senate Appropriations Committee
Last Friday, May 23, 2014, Senate Bill 1017, the Oil Severance Tax Law, failed to pass through the Senate Appropriations Committee. As a result, the bill is effectively dead for the year. SB 1017 was introduced by Senator Evans on February 14, 2014 and passed the Education Committee on April 24, 2014, as reported here.
SB 1017 was set to impose a 9.5% oil and gas severance tax upon any operator, administered by the State Board of Equalization. All tax revenues, penalties, and interest collected were directed to be deposited into the California Higher Education Fund.
Senator Evans will not return to the legislature next year and the current legislative session adjourns August 31, 2014.