Oil and Gas Extraction Tax / Revenue Source / City Services / November 2022 Ballot

Los Angeles Is the largest urban oil field in the United States. More than half a million LA County
residents live within half a mile of an active oil well. Consequently, oil and gas extraction has
adverse impacts on the city and its taxpayers, including diminished quality of life, reduced property
values, and negative health and educational outcomes, especially among low-income Angelinos. In
addition, oil production is antithetical to, and thus increases the cost of, Los Angeles' goals of
achieving carbon neutrality by 2050. The combustion of fossil fuels is the world’s greatest
contributor to climate change, which will force Los Angeles to make massive expenditures in
coming years. Los Angeles taxpayers therefore bear considerable expense resulting from the oil
and gas extraction industry.

For 60 years, Los Angeles charged an oil extraction tax, which was repealed by voters in 1996.
Many neighboring jurisdictions impose various per-barrel taxes on oil and gas extraction that help
them pay for general city services, including offsetting the negative local impacts of extraction. In
order to create an additional source of revenue to achieve those objectives, Los Angeles should
consider allowing the voters to decide whether to impose an extraction tax on oil and gas

I THEREFORE MOVE that the Council INSTRUCT the City Administrative Officer, with assistance
from the Office of Petroleum and Natural Gas Administration and Safety, to report back on potential
amounts and structures of oil and gas extraction taxes for Los Angeles, to he considered on the
November 2022 ballot The report should include examples of oil and gas extraction taxes from
other jurisdictions. The report should include projections on potential revenue for each model to
the City.