WI Oilheat Outreach

         
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April 7 & 8, 2009
About WPMCA
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. : Speak Out On The Oil Franchise Tax
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June 18, 2009 - Senate Removes Oil Franchise Tax From State Budget

June 13, 2009 - Wisconsin State Assembly Makes Changes to the Oil Franchise Tax

Touted as a way to get money from “Big Oil Companies” for the privilege of doing business in Wisconsin, an Oil Franchise Tax has been proposed in the State Budget Bill.  This tax will ultimately be paid by Wisconsin businesses and passed on to Wisconsin consumers and even worse – the amount of the tax will rise when the price of gas goes up.  While the proposal includes “anti-pass-through” language making it illegal to pass on the cost of the tax on to consumers, this provision will be legally challenged and likely overruled.  No state has ever been successful in implementing an anti-pass through provision and any monies collected under this proposal will need to be paid back from the state – with interest!  Instead of passing a “hidden tax,” and hiding behind gimmicks, a straight up gas tax increase is a better alternative and provides a more stable funding source to pay for much needed state transportation projects.   

May 29, 2009 - Flawed Oil Franchise Tax Moves Forward
WPMCA Optimistic As Some Committee Members Recognize Revisions Are Necessary

Click Here to Listen to the Newest Radio Ad on the ‘Hidden Tax’ being considered by  Wisconsin Lawmakers

Click here to send a message to your legislators telling them you oppose the oil franchise tax.

Here is some additional information, documents and materials being used to fight the oil franchise tax: 

  • Oil Franchise Tax Fact Sheet  This document provides an overview of the oil franchise tax including background information, unintended consequences of the proposal and lays out the reasons why this proposal is a BAD idea.
  • AB 75 “Oil Company Profits Tax” Provisions Assembly Bill 75 contains the actual statutory language of the oil franchise tax.  Listed as the “Oil Company Profits Tax” in the statutory language, the bill is a 3% tax on the gross receipts of the oil companies – not their profits. 

  • Press release from the National Director of the Oil Price Information Service, Ben Brockwell stating that the Oil Franchise Tax is not feasible,

  • Alternative to the Oil Franchise Fee A group of business trade associations (including WPMCA) have come up with an alternative proposal to help raise money for the Transportation Fund.  Recognizing that good roads are crucial to Wisconsin’s economic viability, a subcommittee of the Wisconsin Highway Users Group has laid out an alternative proposal to the oil franchise tax that would raise $304 million.

  • Fighting the Oil Franchise Tax:  WPMCA has hit the airwaves, mailbox and telephones to get the word out that the oil franchise tax is really just a “bait and switch” tactic – one that Wisconsin citizens are too smart to fall for.  This tax will take money from their pockets while at the same time infer that someone else will be paying the bill.  
    • WPMCA’s press release talking about the association’s radio ads
    • WPMCA mailed out 90,000 post cards with a picture of wealthy oil tycoon “Ewell B. Payin” to help illustrate who will REALLY be paying the oil franchise tax.
    • Radio Ad 1 This ad asks that we call the oil franchise tax what is really is – an everyday Joe tax (that’s who will be paying) or maybe the skyrocket tax (since the tax goes up as the price of gas rises!)
    • Radio Ad 2 This ad asks for a “show of hands” as to how many people in Wisconsin are wealthy oil barons and illustrates the fact that the citizens of our state will be paying the oil franchise tax – not big oil.
    • Radio Ad 3 This ad asks lawmakers to be honest with citizens about the oil franchise tax which is really a hidden tax  and not a way to tap into the windfall profits of the Big Oil companies as legislators would like you to believe.
  • “I’m Not Big Oil!”:  Over 250 gas Station owners and employees attended the six budget hearings around the state in March and April, wearing bright red t-shirts that proclaimed I’m not Big Oil!”  Their goal was to show the legislators on the Joint Finance Committee that the proposed oil franchise tax will be paid by independently owned and operated Wisconsin businesses -not the big oil companies.
    • Read the press release about the WPMCA members attending the budget hearings and the message they were sending.
    • Check out the pictures from the hearings showing some of the hundreds of gas station & convenience store owners, employees and Wisconsin based fuel suppliers that attended and testified at the budget hearings.

  • Poll Shows Wisconsin Voters Oppose the Oil Franchise Tax: Recognizing it for what it is – a bait and switch tactic, the voters of the state oppose the oil franchise tax by a margin of two to one.  Ninety percent of them also know that prices will go up because of the oil franchise tax – and that they will be the ones paying.  See a summary of the poll and the release announcing the results here: 
  • A legal opinion from Foley & Lardner contends the tax will certainly invite a legal challenge, may be unconstitutional, and may violate the Commerce Clause.

 

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. : What Others Are Saying About the Oil Franchise Tax
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  • What Others are Saying about the Oil Franchise Fee
    • Cooperative Network serves more than 600 member-cooperatives, owned by more than 6.3 million Wisconsin and Minnesota residents.  This group has strongly come out against the oil franchise tax because it would likely eliminate distribution of cooperative patronage capital and harm grassroots economic reinvestment that could otherwise help revive the state’s battered economy.
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. : Spirit Brand
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Spirit is a petroleum brand managed by marketers and owned by the non-profit Petroleum Marketers Association of America (PMAA). This unique arrangement ensures that all decisions are made with the best interest of marketers first and foremost. Spirit provides petroleum marketers a national, quality image with flexible requirements and fair branding costs.

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WPMCA, Inc.* 121 S. Pinckney St, Suite 300 * Madison, WI 53703 * 888.856.7555 * (Fax) 608.256.7666 * hinkelman@wpmca.org