A carbon emissions tax of 4 cents per ton was approved May 21 on a 15-1 vote of the Bay Area Air Quality Management District. San Mateo County Supervisor Jerry Hill, chair of the air district board, said, "Someone needs to take the first step, and we're running out of time, when you look at the Bay rising by 3 feet by 2100 and the devastating effects of climate change."
The board estimates that the new tax will generate $1.1 million, which will be used to collect and track data on greenhouse gases. The top 10 companies subject to the charge will pay 75 percent of the total.
The business community opposed the action, arguing that the board has no legal authority to approve the tax. They also said AB 32 of 2006 vests the California Air Resources Board with the responsibility of reducing greenhouse gases. Dennis Bolt, representing the Western States Petroleum Association, said, "It's disconcerting to business and industry, because we don't know who is in charge."
Cal-Tax also registered opposition, arguing that the plan conflicts with the intent of AB 32. In a letter of opposition, Cal-Tax observed: "One example of the duplication and waste your district's program will cause is in the creation of its separate inventory and reporting system for greenhouse gases. Your agency's inventory system is different and inconsistent with the mandatory reporting system the California Air Resources Board approved in December 2007."
(Cal-Tax: This tax is puzzling from a budgeting standpoint. The revenue will be used to hire employees and fund programs. Assuming that the agency wants to reduce carbon emissions, these employees will be acting to shrink the revenue that funds their budget.) (Sources: Cal-Tax sources and San Francisco Chronicle, May 22.)
Cal-Taxletter May 23, 2008
© 2008 California Taxpayers' Association. All Rights Reserved.