Wednesday, May 12, 2010
Richmond and Chevron agree to $114M tax deal
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RICHMOND, CA (KGO) -- After months of negotiation, Chevron
and Richmond have reached a settlement that requires the city's
biggest taxpayer to pay $114 million over 15 years.
"I think they knew they could not defeat the people of Richmond," Mayor
Gayle McLaughlin told ABC7. "The people are clear that they
deserve more from this corporation."
The two sides have been fighting for years over how much Chevron
should pay in utility taxes. They even prepared rival measures
for the November ballot. Now that the city council has approved
the deal, those campaigns will be abandoned.
"This is a big step." Chevron spokesman Brent Tippen. "Really,
this is a triple win for Chevron, for the city and for the
residents of Richmond."
Under the settlement, Chevron will continue to pay utility
taxes required by city law, plus an additional $4 million to
$13 million per year. The first payment is due in July, just
in time for the city to avoid making about $10 million in budget
cuts, including the layoff of about two dozen city employees.
"It's really going to fill a hole," said Vice-Mayor Jeff Ritterman. "It's
not that this is all of a sudden a windfall and we have all
this extra money."
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