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Amended
IN
Assembly
February 25, 2002
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Amended
IN
Assembly
April 09, 2002
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CALIFORNIA LEGISLATURE—
2001–2002 REGULAR SESSION
Assembly Concurrent Resolution
No. 124
Introduced by
Assembly Member
Harman
(Coauthor(s):
Assembly Member
Bates, Bogh, Briggs, Bill Campbell, John Campbell, Cogdill, Cox, La Suer, Leach, Leonard, Leslie, Mountjoy, Runner, Strickland, Wyland, Wyman)
(Coauthor(s):
Senator
Ackerman, Battin, Haynes, Johannessen, Johnson, Margett, Morrow, Oller)
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January 07, 2002 |
Relative to the retention of vehicle license fee offset reimbursements to local governments.
LEGISLATIVE COUNSEL'S DIGEST
ACR 124, as amended, Harman.
Vehicle license fee offsets: reimbursements to local governments.
This measure would urge the Governor to ensure that local governments will continue to be fully reimbursed for the revenue losses associated with the vehicle license fee offsets authorized under the Vehicle License Fee Law.
Digest Key
Fiscal Committee:
NO WHEREAS, Under the Vehicle License Fee Law, set forth in Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code (VLF Law), vehicle license fees owed by motor vehicle owners are collected by the Department of Motor Vehicles and are then allocated to local governments; and
WHEREAS, In 1998, the Governor and the Legislature reached an agreement to reduce the vehicle license fees paid by motor vehicle owners under the VLF Law by providing for offsets against the vehicle license fees computed under the VLF Law; and
WHEREAS, As part of that agreement it was the intention of the Governor and the Legislature to ensure that local governments would be reimbursed for revenue losses associated with the tax reductions under the VLF Law; and
WHEREAS, In this regard, existing law provides that local governments are to be reimbursed for revenue reductions associated with the vehicle license fee offsets authorized under the VLF Law; and
WHEREAS, Revenues received by local governments under the VLF Law, including the vehicle license fee offsets, constitute one of the largest sources of discretionary revenue available to local governments; and
WHEREAS, Most local governments use these discretionary revenues to support police and fire operations and to fund mandated state programs, such as indigent health care and foster care, for which local governments receive matching funds from the State of California; and
WHEREAS, It is anticipated that for the 2002–03 fiscal year the amount required to reimburse local governments for the revenue reductions associated with the vehicle license fee offsets authorized under the VLF Law will be $3.8 billion; and
WHEREAS, Existing law provides that the vehicle license fee offsets are to be reduced or discontinued to the extent there are insufficient revenues in the General Fund to fully reimburse local governments for revenue reductions associated with the vehicle license fee offsets; and
WHEREAS, The State of California is currently experiencing a budget crisis and there are concerns that the existing requirement to reimburse local governments for the revenue losses associated with the reductions under the VLF Law may be eliminated in order to address the current budget crisis; now, therefore, be it
Resolved by the Assembly of the State of California, the Senate thereof concurring, That so long as the VLF Law provides for vehicle license fee offsets, the Governor is urged to ensure that local governments will continue to be fully reimbursed for the revenue losses associated with the vehicle license fee offsets.