Imperial Valley press., 1939-03-05
Taxing Our
Resources
BY JOHN w. DUNLAP

SACRAMENTO, Cal, Feb. 70.
(UP) = The perennial subject OF
taxing the states natural resources
has been raised again in several
legislative bills, particularly an ad-
ministration measures taxing pet
roleum, natural gas and gasoline.
Gov. Culbert L. Olson estimates
that a tax approXimating two per
cent on those products would raise
S12,OO0,O00 during the next two
years as part of the $63,OOO,00O IN
new revenues he included in the
budget. The proposal raised a storm
of protest from the petroleum IN
dustry at Sacramento hearing this
week
The Bills
The Olson recommendations we're
included in a bill introduced by
Assemblymen John H. ODonnell,
Woodland, George D. Collins, San
Francisco and Maurice E. Atkinson,
Long Beach The bill calls for taxes
on a gravity basis ranging from IA
cents per barrel for the product
below l5 degrees gravity to 2.7 cents
per barrel above "a degrees gravity.
Natural gas would be taxed at .Ol2
cents per 1000 cubic feet and gaSo-
line at similar tax per gallon. All
levies would be effective July l,
1899.
A group of independent oil oper-
ators fought the tax on grounds
it would put small and marginal
producers out of business or would
throw the financial burden back
on the motorists and consuming
public. It was declared the pro-
ducers would be forced to absorb
the tax whereas most were operat-
ing on too small margin to do so.
Defends Plan
AsSemblyman Sam Yorty defend
ed the proposal on grounds the Oil
companies sold oil in the Orient for
less than in this country, making
a margin from domestic prices that
would absorb the tax.
ASsemblyman Ernest o. Voigt has
a similar bill taxing the same pro-
ducts but at higher rates, with
petroleum ranging from 2.3 cents
per barrel under Is degrees and up
to 0405 cents over "a degrees. The
natural gas and gasoline tax would
be .0l8 cents.
Another Voigt bill extends the
tax to all natural resources, includ-
ing metallic and non-metallic min
erals, gas and petroleum, but eX-
Guiding fish and game. There would
be a tax of 10 per cent of the mar
ket value at the we'll on oil; 5 cents
per 1000 cubic feet on natural gas;
Is cents per barrel on lime, lime
stone, silica and alumina used in
the manufacture of Portland ce-
ment; l per cent of the market
value at the quarry, mine, pit or
other place of severance on all
natural resources taken from the
water or land; and $3.50 per ton
on borateS
Gold Laws
Highgrading of gold laws are
made stronger in bill by Assem-
blymen A. G. Thurman, Colfax and
George p Miller, Alameda, by the
addition of fingerprints to records
of ore sales
Making the Bureau of Mines a
separate state department, instead
of a division of the natural re-
sources department, is provided in
a bill by Senator Harold Powers
of Modoc county, with control un-
der state mining board of five
members
Senator George M Biggar, of
Covelo. has a bill providing that
the top soil of land mined by gold
dredgeS must be restored to it's
original position and depth after
gold is extracted from underlying
gravelS. AT present, gold mine land
is laid waste by the dredges of
northern California, which leave
high mounds of rock and gravel
behind