SB 974: Lithium Extraction Tax: fund distribution.

Existing law, the Lithium Extraction Tax Law, imposes a lithium extraction excise tax upon each metric ton of lithium carbonate equivalent extracted from geothermal fluid, spodumene ore, rock, minerals, clay, or any other naturally occurring substance in this state, as specified. Existing law requires the California Department of Tax and Fee Administration to administer and collect the tax and requires all collected revenues, less refunds and reimbursement to the department for administrative expenses, to be deposited into the Lithium Extraction Excise Tax Fund and disbursed in the manner prescribed. Existing law requires 80% of the moneys in the Lithium Extraction Excise Tax Fund to be disbursed by the Controller to all counties in proportion to the amounts collected for lithium extraction within each county, as specified, and 20% of the moneys to be deposited into the Salton Sea Lithium Fund.

This bill would, instead of depositing 20% of the moneys in the Lithium Extraction Excise Tax Fund into the Salton Sea Lithium Fund, deposit 20% of the revenues collected in the County of Imperial into the Salton Sea Lithium Fund, and disburse 20% of the revenues collected in every other county to that county for distribution to communities in that county that are the most impacted by the lithium extraction activities. The bill would remove a restriction on the Lithium Extraction Excise Tax Fund, and would change the amount deposited into the Salton Sea Lithium Fund, both continuously appropriated funds, thereby making an appropriation.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Imperial.