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AB-1121 Vehicle license fee: offset.(1999-2000)

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AB1121:v96#DOCUMENT

Assembly Bill No. 1121
CHAPTER 74

An act to amend Section 10754 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

[ Filed with Secretary of State  July 07, 1999. Approved by Governor  July 07, 1999. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 1121, Knight. Vehicle license fee: offset.
The Vehicle License Fee Law establishes, in lieu of any ad valorem property tax upon vehicles, an annual license fee for any vehicle subject to registration in this state in the amount of 2% of the market value of that vehicle, as specified. Existing law permanently offsets the amount of the vehicle license fee for each subject vehicle by 25%, and, subject to specified contingencies with respect to fiscal year projections of General Fund revenues, provides for the implementation of similar, superseding offsets of 35%, 46.5%, 55%, and 67.5% to apply to specified future calendar years.
This bill would, for vehicle license fees with a final due date during the 2000 calendar year, require an offset percentage of 35%.
This bill would take effect immediately as a tax levy.

The people of the State of California do enact as follows:


SECTION 1.

 Section 10754 of the Revenue and Taxation Code is amended to read:

10754.
 (a) Notwithstanding any other provision of law, the total amount of the vehicle license fee otherwise required with respect to a vehicle shall be offset in accordance with those provisions set forth below that are operative pursuant to subdivision (b):
(1) (A) For any initial or original registration of any vehicle, never before registered in this state, for which the final due date for the license fee is on or after January 1 of any calendar year for which this paragraph is operative, and for any renewal of registration with an expiration date on or after January 1 of any calendar year for which this paragraph is operative, the department shall offset the total amount of fees otherwise due at the time of registration of that vehicle by an amount equal to 25 percent of the amount computed pursuant to Section 10752 or 10752.1, or Section 18115 of the Health and Safety Code.
(B) Upon proper payment of license fees to the Department of Motor Vehicles, the amount of the offset for each vehicle shall be transferred into the Motor Vehicle License Fee Account in the Transportation Tax Fund, and into the Local Revenue Fund, pursuant to Section 11000 or Section 11000.1, as applicable.
(C) During any period in which insufficient moneys are available to be transferred from the General Fund to fully fund the offsets required by subparagraph (A), within 90 days of a reduction of funding, the department shall reduce the amount of each offset computed pursuant to that subparagraph by multiplying that amount by the ratio of the amount of moneys actually available to be transferred from the General Fund to pay for those offsets to the amount of moneys that is necessary to fully fund those offsets.
(1.3) (A) For any initial or original registration of any vehicle, never before registered in this state, for which the final due date for the license fee is on or after January 1 of any calendar year for which this paragraph is operative, and for any renewal of registration with an expiration date on or after January 1 of any calendar year for which this paragraph is operative, the department shall offset the total amount of fees otherwise due at the time of registration of that vehicle by an amount equal to 35 percent to of the amount computed pursuant to Section 10752 or 10752.1, or Section 18115 of the Health and Safety Code.
(B) Upon proper payment of license fees to the Department of Motor Vehicles, the amount of the offset for each vehicle shall be transferred into the Motor Vehicle License Fee Account in the Transportation Tax Fund, and into the Local Revenue Fund, pursuant to Section 11000 or Section 11000.1, as applicable.
(C) During any period in which insufficient moneys are available to be transferred from the General Fund to fully fund the offsets required by subparagraph (A), within 90 days of a reduction of funding, the department shall reduce the amount of each offset computed pursuant to that subparagraph by multiplying that amount by the ratio of the amount of moneys actually available to be transferred from the General Fund to pay for those offsets to the amount of moneys that is necessary to fully fund those offsets.
(2) (A) For any initial or original registration of any vehicle, never before registered in this state, for which the final due date for the license fee is on or after January 1 of any calendar year for which this paragraph is operative, and for any renewal of registration with an expiration date on or after January 1 of any calendar year for which this paragraph is operative, the department shall offset the total amount of fees otherwise due at the time of registration of that vehicle by an amount equal to 35 percent of the amount computed pursuant to Section 10752 or 10752.1, or Section 18115 of the Health and Safety Code.
(B) Upon proper payment of license fees to the Department of Motor Vehicles, the amount of the offset for each vehicle shall be transferred into the Motor Vehicle License Fee Account in the Transportation Tax Fund, and into the Local Revenue Fund, pursuant to Section 11000 or Section 11000.1, as applicable.
(C) During any period in which insufficient moneys are available to be transferred from the General Fund to fully fund the offsets required by subparagraph (A), within 90 days of a reduction of funding, the department shall reduce the amount of each offset computed pursuant to that subparagraph by multiplying that amount by the ratio of the amount of moneys actually available to be transferred from the General Fund to pay for those offsets to the amount of moneys that is necessary to fully fund those offsets.
(3) (A) For any initial or original registration of any vehicle, never before registered in this state, for which the final due date for the license fee is on or after January 1 of any calendar year for which this paragraph is operative, and for any renewal of registration with an expiration date on or after January 1 of any calendar year for which this paragraph is operative, the department shall offset the total amount of fees otherwise due at the time of registration of that vehicle by an amount equal to 461/2 percent of the amount computed pursuant to Section 10752 or 10752.1, or Section 18115 of the Health and Safety Code.
(B) Upon proper payment of license fees to the Department of Motor Vehicles, the amount of the offset for each vehicle shall be transferred into the Motor Vehicle License Fee Account in the Transportation Tax Fund, and into the Local Revenue Fund, pursuant to Section 11000 or Section 11000.1, as applicable.
(C) During any period in which insufficient moneys are available to be transferred from the General Fund to fully fund the offsets required by subparagraph (A), within 90 days of a reduction of funding, the department shall reduce the amount of each offset computed pursuant to that subparagraph by multiplying that amount by the ratio of the amount of moneys actually available to be transferred from the General Fund to pay for those offsets to the amount of moneys that is necessary to fully fund those offsets.
(4) (A) For any initial or original registration of any vehicle, never before registered in this state, for which the final due date for the license fee is on or after January 1 of any calendar year for which this paragraph is operative, and for any renewal of registration with an expiration date on or after January 1 of any calendar year for which this paragraph is operative, the department shall offset the total amount of fees otherwise due at the time of registration of that vehicle by an amount equal to 55 percent of the amount computed pursuant to Section 10752 or 10752.1, or Section 18115 of the Health and Safety Code.
(B) Upon proper payment of license fees to the Department of Motor Vehicles, the amount of the offset for each vehicle shall be transferred into the Motor Vehicle License Fee Account in the Transportation Tax Fund, and into the Local Revenue Fund, pursuant to Section 11000 or Section 11000.1, as applicable.
(C) During any period in which insufficient moneys are available to be transferred from the General Fund to fully fund the offsets required by subparagraph (A), within 90 days of a reduction of funding, the department shall reduce the amount of each offset computed pursuant to that subparagraph by multiplying that amount by the ratio of the amount of moneys actually available to be transferred from the General Fund to pay for those offsets to the amount of moneys that is necessary to fully fund those offsets.
(5) (A) For any initial or original registration of any vehicle, never before registered in this state, for which the final due date for the license fee is on or after January 1 of any calendar year for which this paragraph is operative, and for any renewal of registration with an expiration date on or after January 1 of any calendar year for which this paragraph is operative, the department shall offset the total amount of fees otherwise due at the time of registration of that vehicle by an amount equal to 671/2 percent of the amount computed pursuant to Section 10752 or 10752.1, or Section 18115 of the Health and Safety Code.
(B) Upon proper payment of license fees to the Department of Motor Vehicles, the amount of the offset for each vehicle shall be transferred into the Motor Vehicle License Fee Account in the Transportation Tax Fund, and into the Local Revenue Fund, pursuant to Section 11000 or Section 11000.1, as applicable.
(C) During any period in which insufficient moneys are available to be transferred from the General Fund to fully fund the offsets required by subparagraph (A), within 90 days of a reduction in funding, the department shall reduce the amount of each offset computed pursuant to that subparagraph by multiplying that amount by the ratio of the amount of moneys actually available to be transferred from the General Fund to pay for those offsets to the amount of moneys that is necessary to fully fund those offsets.
(b) The offset provisions set forth in subdivision (a) shall be operative as provided by the following:
(1) Paragraph (1) of subdivision (a) shall be operative for vehicle license fees with a final due date in each calendar year beginning on or after January 1, 1999, unless paragraph (1.3), (2), (3), (4), or (5) of subdivision (a) becomes operative. In that event, paragraph (1) of subdivision (a) will be inoperative only for that period during which one of those paragraphs is operative.
(1.3) Paragraph (1.3) of subdivision (a) shall be operative for vehicle license fees with a final due date in the calendar year beginning on January 1, 2000.
(2) Paragraph (2) of subdivision (a) shall be operative for vehicle license fees with a final due date in the calendar year beginning on January 1, 2001, if the forecast of General Fund revenue, excluding transfers, for the 2000–01 fiscal year, is at least sixty-five billion five hundred twenty-six million dollars ($65,526,000,000). On September 1, 2000, the Director of Finance shall certify to the Governor, the Legislature, and the department whether this condition has been met.
Five days before certification, the Director of Finance shall submit to the Chair of the Joint Legislative Budget Committee a forecast of General Fund revenues with sufficient detail to document the basis of the certification.
(3) Paragraph (2) of subdivision (a) shall be operative for vehicle license fees with a final due date in each calendar year beginning on or after January 1, 2002, if both of the following occur:
(A) The forecast of General Fund revenue, excluding transfers, for the 2001–02 fiscal year, is at least sixty-eight billion six hundred forty million dollars ($68,640,000,000). On September 1, 2001, the Director of Finance shall certify to the Governor, the Legislature, and the department whether this condition has been met.
(B) Paragraph (2) of subdivision (a) became operative pursuant to paragraph (2) of this subdivision.
If paragraph (3), (4), or (5) of subdivision (a) becomes operative for any calendar year beginning on or after January 1, 2002, paragraph (2) of subdivision (a) shall be inoperative during the period in which any of those paragraphs is so operative.
Five days before certification, the Director of Finance shall submit to the Chair of the Joint Legislative Budget Committee a forecast of General Fund revenues with sufficient detail to document the basis of the certification.
(4) If paragraph (2) of subdivision (a) does not become operative pursuant to paragraph (2) of this subdivision, paragraph (2) of subdivision (a) shall be operative for vehicle license fees with a final due date in the calendar year beginning on January 1, 2002, if the forecast of General Fund revenue, excluding transfers, for the 2001–02 fiscal year, is at least sixty-eight billion six hundred forty million dollars ($68,640,000,000), but is less than sixty-nine billion one hundred forty million dollars ($69,140,000,000). If paragraph (2) of subdivision (a) does not become operative pursuant to paragraph (2) of this subdivision, the Director of Finance shall, on September 1, 2001, certify to the Governor, the Legislature, and the department whether the condition set forth in the preceding sentence has been met.
Five days before certification, the Director of Finance shall submit to the Chair of the Joint Legislative Budget Committee a forecast of General Fund revenues with sufficient detail to document the basis of the certification.
(5) Paragraph (3) of subdivision (a) shall be operative for vehicle license fees with a final due date in the calendar year beginning on January 1, 2002, if the forecast of General Fund revenue, excluding transfers, for the 2001–02 fiscal year, is at least sixty-nine billion one hundred forty million dollars ($69,140,000,000). On September 1, 2001, the Director of Finance shall certify to the Governor, the Legislature, and the department whether this condition has been met.
Five days before certification, the Director of Finance shall submit to the Chair of the Joint Legislative Budget Committee a forecast of General Fund revenues with sufficient detail to document the basis of the certification.
(6) Paragraph (2) of subdivision (a) shall be operative for vehicle license fees with a final due date in each calendar year beginning on or after January 1, 2003, if both of the following occur:
(A) The forecast of General Fund revenue, excluding transfers, for the 2002–03 fiscal year, is at least seventy-two billion one hundred sixty million dollars ($72,160,000,000). On September 1, 2002, the Director of Finance shall certify to the Governor, the Legislature, and the department whether this condition has been met.
(B) Paragraph (2) of subdivision (a) became operative pursuant to paragraph (4) of this subdivision, or paragraph (3) of subdivision (a) became operative pursuant to paragraph (5) of this subdivision.
If paragraph (3), (4), or (5) of subdivision (a) becomes operative for any calendar year beginning on or after January 1, 2003, paragraph (2) of subdivision (a) shall be inoperative during the period in which any of those paragraphs is so operative.
Five days before certification, the Director of Finance shall submit to the Chair of the Joint Legislative Budget Committee a forecast of General Fund revenues with sufficient detail to document the basis of the certification.
(7) If paragraph (2) of subdivision (a) does not become operative pursuant to paragraph (6) of this subdivision, paragraph (2) of subdivision (a) shall be operative for vehicle license fees with final due date in the calendar year beginning on January 1, 2003, if the forecast of General Fund revenue, excluding transfers, for the 2002–03 fiscal year, is at least seventy-two billion one hundred sixty million dollars ($72,160,000,000), but is less than seventy-two billion six hundred sixty million dollars ($72,660,000,000). If paragraph (2) of subdivision (a) does not become operative pursuant to paragraph (6) of this subdivision, the Director of Finance shall, on September 1, 2002, certify to the Governor, the Legislature, and the department whether the condition set forth in the preceding sentence has been met.
Five days before certification, the Director of Finance shall submit to the Chair of the Joint Legislative Budget Committee a forecast of General Fund revenues with sufficient detail to document the basis of the certification.
(8) Paragraph (3) of subdivision (a) shall be operative for vehicle license fees with a final due date in each calendar year beginning on or after January 1, 2003, if both of the following occur:
(A) The forecast of General Fund revenue, excluding transfers, for the 2002–03 fiscal year, is at least seventy-two billion one hundred sixty million dollars ($72,160,000,000). On September 1, 2002, the Director of Finance shall certify to the Governor, the Legislature, and the department whether this condition has been met.
(B) Paragraph (3) of subdivision (a) became operative pursuant to paragraph (5) of this subdivision.
If paragraph (4) or (5) of subdivision (a) becomes operative for any calendar year beginning on or after January 1, 2003, paragraph (3) of subdivision (a) shall be inoperative during the period in which either of those paragraphs is so operative.
Five days before certification, the Director of Finance shall submit to the Chair of the Joint Legislative Budget Committee a forecast of General Fund revenues with sufficient detail to document the basis of the certification.
(9) If paragraph (3) of subdivision (a) does not become operative pursuant to paragraph (8) of this subdivision, paragraph (3) of subdivision (a) shall be operative for vehicle license fees with final due date in the calendar year beginning on January 1, 2003, if the forecast of General Fund revenue, excluding transfers, for the 2002–03 fiscal year, is at least seventy-two billion six hundred sixty million dollars ($72,660,000,000), but is less than seventy-three billion one hundred sixty million dollars ($73,160,000,000). If paragraph (3) of subdivision (a) does not become operative pursuant to paragraph (8) of this subdivision, the Director of Finance shall, on September 1, 2002, certify to the Governor, the Legislature, and the department whether the condition set forth in the preceding sentence has been met.
Five days before certification, the Director of Finance shall submit to the Chair of the Joint Legislative Budget Committee a forecast of General Fund revenues with sufficient detail to document the basis of the certification.
(10) Paragraph (4) of subdivision (a) shall be operative for vehicle license fees with a final due date in the calendar year beginning on January 1, 2003, if the forecast of General Fund revenue, excluding transfers, for the 2002–03 fiscal year, is at least seventy-three billion one hundred sixty million dollars ($73,160,000,000) but is less than seventy-four billion three hundred sixty million dollars ($74,360,000,000). On September 1, 2002, the Director of Finance shall certify to the Governor, the Legislature, and the department whether this condition has been met.
Five days before certification, the Director of Finance shall submit to the Chair of the Joint Legislative Budget Committee a forecast of General Fund revenues with sufficient detail to document the basis of the certification.
(11) Paragraph (5) of subdivision (a) shall be operative for vehicle license fees with a final due date in the calendar year beginning on January 1, 2003, if the forecast of General Fund revenue, excluding transfers, for the 2002–03 fiscal year, is at least seventy-four billion three hundred sixty million dollars ($74,360,000,000). On September 1, 2002, the Director of Finance shall certify to the Governor, the Legislature, and the department whether this condition has been met.
Five days before certification, the Director of Finance shall submit to the Chair of the Joint Legislative Budget Committee a forecast of General Fund revenues with sufficient detail to document the basis of the certification.
(12) Paragraph (2) of subdivision (a) shall be operative for vehicle license fees with a final due date in each calendar year beginning on or after January 1, 2004, if both of the following occur:
(A) The forecast of General Fund revenue, excluding transfers, for the 2003–04 fiscal year, is at least seventy-six billion one hundred eight million dollars ($76,108,000,000). On September 1, 2003, the Director of Finance shall certify to the Governor, the Legislature, and the department whether this condition has been met.
(B) Paragraph (2) of subdivision (a) became operative pursuant to paragraph (7) of this subdivision, paragraph (3) of subdivision (a) became operative pursuant to paragraph (9) of this subdivision, paragraph (4) of subdivision (a) became operative pursuant to paragraph (10) of this subdivision, or paragraph (5) of subdivision (a) became operative pursuant to paragraph (11) of this subdivision.
If paragraph (3), (4), or (5) of subdivision (a) becomes operative for any calendar year beginning on or after January 1, 2004, paragraph (2) of subdivision (a) shall become inoperative.
Five days before certification, the Director of Finance shall submit to the Chair of the Joint Legislative Budget Committee a forecast of General Fund revenues with sufficient detail to document the basis of the certification.
(13) Paragraph (3) of subdivision (a) shall be operative for vehicle license fees with a final due date in each calendar year beginning on or after January 1, 2004, if both of the following occur:
(A) The forecast of General Fund revenue, excluding transfers, for the 2003–04 fiscal year, is at least seventy-six billion one hundred eight million dollars ($76,108,000,000). On September 1, 2003, the Director of Finance shall certify to the Governor, the Legislature, and the department whether this condition has been met.
(B) Paragraph (3) of subdivision (a) became operative pursuant to paragraph (9) of this subdivision, paragraph (4) of subdivision (a) became operative pursuant to paragraph (10) of this subdivision, or paragraph (5) of subdivision (a) became operative pursuant to paragraph (11) of this subdivision.
If paragraph (4) or (5) of subdivision (a) becomes operative for the calendar year beginning on or after January 1, 2004, paragraph (3) of subdivision (a) shall become inoperative.
Five days before certification, the Director of Finance shall submit to the Chair of the Joint Legislative Budget Committee a forecast of General Fund revenues with sufficient detail to document the basis of the certification.
(14) Paragraph (4) of subdivision (a) shall be operative for vehicle license fees with a final due date in each calendar year beginning on or after January 1, 2004, if both of the following occur:
(A) The forecast of General Fund revenue, excluding transfers, for the 2003–04 fiscal year, is at least seventy-seven billion one hundred eight million dollars ($77,108,000,000). On September 1, 2003, the Director of Finance shall certify to the Governor, the Legislature, and the department whether this condition has been met.
(B) Paragraph (4) of subdivision (a) became operative pursuant to paragraph (10) of this subdivision, or paragraph (5) of subdivision (a) became operative pursuant to paragraph (11) of this subdivision.
If paragraph (5) of subdivision (a) becomes operative for the calendar year beginning on or after January 1, 2004, paragraph (4) of subdivision (a) shall become inoperative.
Five days before certification, the Director of Finance shall submit to the Chair of the Joint Legislative Budget Committee a forecast of General Fund revenues with sufficient detail to document the basis of the certification.
(15) Paragraph (5) of subdivision (a) shall be operative for vehicle license fees with a final due date in each calendar year beginning on or after January 1, 2004, if both of the following occur:
(A) The forecast of General Fund revenue, excluding transfers, for the 2003–04 fiscal year, is at least seventy-eight billion three hundred eight million dollars ($78,308,000,000). On September 1, 2003, the Director of Finance shall certify to the Governor, the Legislature, and the department whether this condition has been met.
(B) Paragraph (5) of subdivision (a) became operative pursuant to paragraph (11) of this subdivision.
Five days before certification, the Director of Finance shall submit to the Chair of the Joint Legislative Budget Committee a forecast of General Fund revenues with sufficient detail to document the basis of the certification.
(c) (1) For purposes of this section, “department” means the Department of Motor Vehicles and the Department of Housing and Community Development.
(2) For purposes of this section, the “final due date” for a license fee is the last date upon which that fee may be paid without being delinquent.
(3) For purposes of certifications specified in paragraphs (2) to (15), inclusive, of subdivision (b), the General Fund revenue forecast, excluding transfers, that is used for the enactment of the relevant budget act shall be calculated in a manner that is consistent with the definition of General Fund revenues, excluding transfers, that was used by the Department of Finance in the 1998 May Revision revenue forecast as reflected on Schedule 8 of that revision.
(4) For purposes of making the certifications specified in paragraphs (2) to (15), inclusive, of subdivision (b), the Department of Finance shall, for each of the 2000–01 to 2003–04 fiscal years, inclusive, estimate the combined fiscal impact of all state tax law changes, including any changes with respect to interest or penalties, that were enacted by the Legislature and signed by the Governor on or after January 1, 1999. If for any fiscal year, the Department of Finance estimates a cumulative reduction in General Fund revenues in excess of one hundred million dollars ($100,000,000), the Department of Finance shall subtract the amount of that estimated reduction from each of the General Fund revenue target amounts, specified in paragraphs (2) to (15), inclusive, of subdivision (b), and shall apply each resulting difference in lieu of each corresponding target amount. For each fiscal year for which the preceding sentence applies, the Department of Finance shall also do all of the following:
(A) Subtract the amount of the estimated General Fund revenue loss from the estimated amount of the fiscal impact of each offset specified in paragraphs (2) to (5), inclusive, of subdivision (a).
(B) Divide each annual amount calculated pursuant to subparagraph (A) by the corresponding estimate by the Department of Finance of annual vehicle license fee revenues.
(C) Calculate percentages by multiplying each quotient determined pursuant to subparagraph (B) by 100 and rounding each result to the nearest 10th.
(D) Provide the percentages calculated in subparagraph (C) to the department, which shall apply those percentages in lieu of those corresponding offsets set forth in paragraphs (2) to (5), inclusive, of subdivision (a).
(5) For purposes of making the certifications specified in paragraphs (2) to (15), inclusive, of subdivision (b), the Department of Finance shall do all of the following:
(A) Estimate for each of the 2000–01 to 2003–04 fiscal years, inclusive, the total fiscal impact of all settlements that result in an annual revenue increase of more than one hundred million dollars ($100,000,000) per year for five fiscal years or less.
(B) Subtract each total fiscal impact estimated pursuant to subparagraph (A) from the amounts of the revenue forecasts referred to in paragraphs (2) to (15), inclusive, of subdivision (b).
(C) Use each difference calculated pursuant to subparagraph (B) in lieu of each corresponding revenue forecast.

SEC. 2.

 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.