Measure US would amend the Long Beach Municipal Code to increase the City's general purpose oil barrel production tax from 15 cents up to a maximum of 30 cents per barrel, with the entire amount subject to automatic annual adjustments based on the applicable Consumer Price Index (CPI). The measure was placed on the ballot by the Long Beach City Council.
The general purpose barrel tax was separately adopted and is in addition to the City's special purpose barrel tax, which is currently set at 33 cents per barrel. Revenues from the special tax are separately deposited in the City's "Police and Fire Public Safety Oil Production Act Fund" and may only be used for public safety purposes. Measure US would not affect the special purpose barrel tax in any way.
An increase in the general purpose barrel tax, as proposed by Measure US, is estimated to generate $1.6 million in additional annual revenue which can be spent to fund general City services.
How the Increased Oil Production Tax Rate Compares to Other Cities
Source: Long Beach City Manager's Analysis of Measure US
Measure US includes the requirement that the barrel tax rate cannot increase beyond the maximum 30 cents per barrel, as annually adjusted for CPI, without voter approval. However, the measure would authorize the Council to adjust the rate between 0 cents and the maximum, without requiring a further vote of the people. If approved by voters, the measure would take effect October 1, 2021.
Source: Long Beach City Attorney's Impartial Analysis of Measure US