Torrance Municipal Code Art. 2 Imposition of Tax

(Added by O-2201)

228.2.1 BARREL RATE.

(Amended by O-2417; O-2496; O-2497; O-2836; O-3231; O-3314)

a) A tax is hereby imposed upon every person producing or severing oil from the earth in the City at the rate of fifteen (15) cents per barrel per well per year.

b) The minimum tax to be paid by any person producing or severing oil from the earth in the City shall be Fifty-Six Dollars and Twenty-Five Cents ($56.25) per well per calendar quarter.

c) Computation of production for purposes of establishing the minimum tax shall be made quarterly from and including the quarter beginning July 1, 1988.

d) If the Consumer Price Index, Urban Wage Earner and Clerical Worker, Los Angeles, Anaheim, Riverside Metropolitan Area, prepared by the United States Bureau of Labor Statistics, Department of Labor for the last calendar month available on October 31, 1990 shall stand at 130.5 (using the price prevailing during the years 1982-84 as a base of 100) then the amount of the taxes in this Division 2 shall remain as written herein.

e) If the said index for said month shall stand at other than 130.5 then the amount of fees provided in this Section shall be increased or decreased a corresponding amount, provided however, the fees shall be rounded to the nearest penny, except as provided in Sections 35.7.3 and 35.8.4

f) The amount of adjustment shall be determined by the Director of Finance who shall provide such adjustment figures annually thereafter.

g) In the event the said bureau shall revise the said index, the Director of Finance shall accept the method of revisions or conversion recommended by the bureau.

h) If the said bureau shall discontinue the preparation of the Consumer Price Index, Urban Wage Earner and Clerical Worker, Los Angeles, Anaheim, Riverside Metropolitan Area, prepared by the United States Bureau of Labor Statistics, Department of Labor, using prices prevailing in the year 1982-84 as a base of 100, and if no transposition table prepared by the Bureau is available which is applicable to the years 1982-84, then the fees shall be increased or decreased on the basis of any other nationally recognized indicator of increases or decreases in consumer product

228.2.2 OPERATIVE DATE.

(Amended by O-3231)

The tax imposed by Section 228.2.1. shall become operative June 1, 1988 shall be paid at the time and in the manner hereinafter provided, and shall be in addition to any and all other taxes.

228.2.3 TAX ON PRODUCER.

The tax imposed by Section 228.2.1. is imposed upon each producer of oil in respect to his interest in the oil or the proceeds therefrom, at the time of severance. The operator shall collect or withhold from each producer the amount of the tax due with respect to the oil produced or severed by the operator and shall return and remit all taxes payable for himself and the other producers in accordance with this part.

228.2.4 RESPONSIBILITY OF PURCHASER.

In the event that the oil produced or severed is sold to any person under a contract requiring the purchaser to make payments directly to those owning any royalty or other interests in the oil or the proceeds therefrom, the purchaser shall be regarded as the operator as respects the requirement of the collection or withholding tax to the Director. Nothing contained herein shall be construed as to relieving the producer in actual charge of production operations from liability for the payment of the entire amount of the tax.

228.2.5 TAX A DEBT.

The tax required to be collected or withheld by the operator from each producer constitutes a debt owed by the operator to the City and the operator shall be personally liable for the payment of any amount of tax required to be collected or withheld by him in the event of his failure to collect or withhold as required herein.