boutons_deux
03-03-2012, 11:33 AM
El Segundo ignores millions in potential taxes from Chevron
in the mid-1990s, El Segundo ignored a preliminary audit showing Chevron owed as much as $9.5 million in back utility taxes and then ordered auditors to stop work.
At the same time, the city capped Chevron's future natural gas taxes at $150,000 a year plus inflation — a fraction of what auditors said the city should be receiving.
After a city audit in 2008 found that the oil company had underpaid its utility tax by as much as $50 million over a two-year period, Chevron agreed to a $28-million settlement, said Bill Lindsay, Richmond's city manager. The utility tax cap was set at $14 million.
"It's ironic because up here, Chevron keeps saying, 'We never have this kind of trouble with El Segundo,'" he said.
Like many cities, El Segundo has suffered during the economic downturn. In recent years, 50 employees have lost their jobs, salaries were cut by 12% on average and the library was forced to shorten its hours.
Chevron had underpaid its taxes on natural gas by $4.2 million, electricity by $3.268 million and telephone by $79,300, not including interest and penalties.
The report said the city might be owed taxes going further back and estimated Chevron's liability could be "$9.5 million or more."
http://mobile.latimes.com/p.p?m=b&a=rp&id=1734702&postId=1734702&postUserId=7&sessionToken=&catId=6978&curAbsIndex=1&resultsUrl=DID%3D6%26DFCL%3D1000%26DSB%3Drank%2523 desc%26DBFQ%3DuserId%253A7%26DL.w%3D%26DL.d%3D10%2 6DQ%3DsectionId%253A6978%26DPS%3D0%26DPL%3D3
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People think Texas = oil, but they forget or don't know how huge CA's oil industry was/is.
Chevron, Occidental, Getty, etc.
There Will Be Blood (but no taxes)
in the mid-1990s, El Segundo ignored a preliminary audit showing Chevron owed as much as $9.5 million in back utility taxes and then ordered auditors to stop work.
At the same time, the city capped Chevron's future natural gas taxes at $150,000 a year plus inflation — a fraction of what auditors said the city should be receiving.
After a city audit in 2008 found that the oil company had underpaid its utility tax by as much as $50 million over a two-year period, Chevron agreed to a $28-million settlement, said Bill Lindsay, Richmond's city manager. The utility tax cap was set at $14 million.
"It's ironic because up here, Chevron keeps saying, 'We never have this kind of trouble with El Segundo,'" he said.
Like many cities, El Segundo has suffered during the economic downturn. In recent years, 50 employees have lost their jobs, salaries were cut by 12% on average and the library was forced to shorten its hours.
Chevron had underpaid its taxes on natural gas by $4.2 million, electricity by $3.268 million and telephone by $79,300, not including interest and penalties.
The report said the city might be owed taxes going further back and estimated Chevron's liability could be "$9.5 million or more."
http://mobile.latimes.com/p.p?m=b&a=rp&id=1734702&postId=1734702&postUserId=7&sessionToken=&catId=6978&curAbsIndex=1&resultsUrl=DID%3D6%26DFCL%3D1000%26DSB%3Drank%2523 desc%26DBFQ%3DuserId%253A7%26DL.w%3D%26DL.d%3D10%2 6DQ%3DsectionId%253A6978%26DPS%3D0%26DPL%3D3
====
People think Texas = oil, but they forget or don't know how huge CA's oil industry was/is.
Chevron, Occidental, Getty, etc.
There Will Be Blood (but no taxes)