Update: The city’s proposed subpoena for Chevron’s tax documents was approved by the city council April 22 as part of the consent calendar, meaning the item was unanimously approved by the council without discussion, along with other “non-controversial” items.
The city of Richmond suspects Chevron is underpaying its business taxes so on Tuesday the city council will consider issuing a legislative subpoena to force the refinery to turn over its financial records.
According to a report for Tuesday’s city council meeting, the city says Chevron, its largest employer and taxpayer, has paid “substantially less than is due” since 2022 and says it has made multiple unsuccessful attempts since July 2024 to audit whether the company is complying with Measure U, the city’s business tax ordinance.
The company recorded $21.3 billion in profits in 2023 and paid $45.9 million in taxes to Richmond in the 2022–23 fiscal year, representing more than 15% of the city’s total revenue, according to a 2024 KQED report.
The proposed subpoena would give Chevron until May 27 to provide all the requested documents, including income statements, general ledgers, and records showing how Chevron calculated its recent December 2024 and April 2025 tax payments.
“While Chevron has provided limited access to some information necessary to audit business license tax payments for prior years, Chevron has failed to meaningfully respond to multiple requests from the City,” the council meeting agenda report states.
If you go
WHAT: Richmond City Council
WHEN: Tue., April 22
WHERE: City Hall, 403 Civic Center Plaza
MORE INFO: Agenda, Zoom information.
The report states that negotiations over a non-disclosure agreement have stalled since July 2024, with Chevron refusing to provide audit data without such an agreement in place.
District 6 city council member Claudia Jimenez said that the difference between what Chevron paid versus what city staff believe it should have paid is a “big difference.”
“There isn’t an understanding there,” she said. “What happened is staff wanted to have this information, and Chevron is saying that the city doesn’t need those specific records.”
Jimenez said that the city is not targeting Chevron but wants added transparency.
“This is not something against them,” she said. “If they are all for transparency and being good neighbors then we shouldn’t have to do this.”
If Chevron doesn’t comply it may be issued a “citation for contempt or other penalties before the Superior Court of the State of California,” the letter added.
The possible subpoena is the latest chapter in the checkered relationship between the city and the local oil company whose history in Richmond predates the city’s incorporation. It also comes at a time when the future of refineries are in question, with Valero announcing earlier this week that it would be “shifting or ceasing” its Benicia operations.
Last year, Richmond secured a $550 million, 10-year payout from Chevron by agreeing to drop a pending November ballot measure that would have taxed the company $1 per barrel of oil refined in the city.
In an email sent to Richmondside Sunday morning, Caitlin Powell, spokesperson for Chevron, said that the company believes the proposed subpoena is “unnecessary, counter to the City’s established process, and does nothing to advance the conversation.”
“We have been engaged with staff on a process to answer questions they may have and are committed to continuing the conversation,” Powell said. “This unwarranted action will only serve to waste time and city resources that could otherwise be used to provide important city services.”
Please continue with your reporting regarding Chevron paying their fair share of taxes. We have lived here for 34 years and believe they need to pay more to help our community.