Judge strikes down Richmond tax on Chevron plant

AP News
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Posted: Dec 24, 2009 9:19 PM

Chevron Corp. could be getting back millions of dollars from the San Francisco Bay area city of Richmond after a judge struck down a tax assessed on a refinery the oil giant operates in the city.

Contra Costa County Superior Court Judge David Flinn ruled last week that a tax approved by Richmond voters last year on the value of crude oil refined at the plant is unconstitutional and violates state law.

In issuing his ruling, the judge also said Chevron was entitled to a refund.

Chevron officials say the company has paid $20.5 million after the tax was passed in November 2008.

Michael Colantuono, a lawyer representing Richmond, said Thursday that the city will appeal.

Colantuono says the city has placed the tax money collected from San Ramon, Calif.-based Chevron in escrow pending the final outcome of the case.

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Information from: San Francisco Chronicle, http://www.sfgate.com/chronicle