California Supreme Court blocks Carson's extra tax refund steps for oil refiner
The California Supreme Court ruled that the city of Carson cannot require Tesoro Refining & Marketing to follow local administrative procedures before seeking a tax refund under the state Government Claims Act.
The California Supreme Court issued a unanimous opinion affirming Tesoro Refining & Marketing’s right to pursue a refund of the oil industry business license tax without first complying with Carson’s local administrative requirements. The ruling overturns both a trial judge and an appellate panel that had sided with the city, finding that the city’s mandate to request the refund from the finance director and appeal any denial to the city manager is preempted by the state’s Government Claims Act.
Tesoro, a subsidiary of Marathon Petroleum, had paid a deficiency notice covering December 2017 through June 2018 under protest and then filed a claim with the city clerk. Chief Justice Patricia Guerrero emphasized that the legislature intended a uniform, statewide process for presenting monetary claims. The 0.25% tax was approved by Carson voters in 2017 and applies to gross receipts of refining and storage operations.
Marathon’s Carson refinery, the West Coast’s largest with a 365,000-barrel-per-day capacity, processes crude from California and abroad. City representatives and a Marathon spokesperson declined to comment.
Why it matters
The decision clarifies that local tax refund rules cannot override state law, affecting how businesses challenge municipal tax assessments in California.
How the sides frame it
LOW AGREEMENTLeft-leaning coverage focuses on California’s first carbon-storage project and its regulatory uncertainties, while centrist coverage details the California Supreme Court’s decision affirming a refinery’s right to a tax refund and rejecting local requirements.
LEFT
Frames the carbon-storage initiative as a pioneering but risky step, highlighting regulatory gaps and environmental concerns.
CENTER
Frames the court ruling as a legal affirmation of the refinery’s refund claim and a reinforcement of statewide uniformity over local control.
The left emphasises
- California Resources Corp. started pumping CO₂ into the historic Elk Hills field, creating the state’s first carbon-vault.
- The project proceeds despite the absence of finalized California storage rules, limiting stricter safeguards.
- Lawmakers praise the effort for climate goals, while Earthjustice and experts warn about potential leaks from old wells.
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