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AB-5 Taxes: vehicle license fee.(2003-2004)

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AB5:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2003–2004 5th Ext.

Assembly Bill
No. 5

Introduced  by  Assembly Member McCarthy

November 25, 2003

An act to amend Sections 10753.2, 10753.8, and 11001.5 of the Revenue and Taxation Code, to amend Section 40 of Chapter 91 of the Statutes of 1991, and to repeal Section 210 of Chapter 89 of the Statutes of 1991 and Section 29 of Chapter 100 the Statutes of 1993, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 5, as introduced, McCarthy. Taxes: vehicle license fee.
Existing law provides that the annual vehicle license fee is 2% of the market value, which is adjusted for depreciation.
Existing law also provides that any changes in the manner of computation of the vehicle license fee made during the 1991–92 legislative session, which result in an increase in the amount of the vehicle license fee, would cease to be operative if either of 2 specified contingencies occurred.
This bill would eliminate the contingency provisions that would make these increases in the computation of the vehicle license fee inoperative.
By eliminating the contingency that these increases in the computation of the vehicle license fee may become inoperative, this bill would result in a change in state taxes for the purpose of increasing state revenues within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
This bill would take effect immediately as a tax levy.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 10753.2 of the Revenue and Taxation Code is amended to read:

10753.2.
 (a) After determining the cost price to the purchaser, as provided in this article, the department shall classify or reclassify every vehicle, other than a trailer or semitrailer, as described in subdivision (a) of Section 5014.1 of the Vehicle Code, in its proper class according to the classification plan set forth in this section.
(b) For the purpose of this part, a classification plan is established consisting of the following classes: a class from zero dollars ($0) to and including forty-nine dollars and ninety-nine cents ($49.99); a class from fifty dollars ($50) to and including one hundred ninety-nine dollars and ninety-nine cents ($199.99); and thereafter a series of classes successively set up in brackets having a spread of two hundred dollars ($200), consisting of a number of classes that will permit classification of all vehicles.
(c) The market value of a vehicle, other than a trailer or semitrailer, as described in subdivision (a) of Section 5014.1 of the Vehicle Code, for each registration year, starting with the year the vehicle was first sold to a consumer as a new vehicle, or the year the vehicle was first purchased or assembled by the person applying for original registration in this state, or the year the vehicle was sold to the current registered owner as a used vehicle, shall be as follows: for the first year, 100 percent of a sum equal to the middle point between the extremes of its class as established in subdivision (b); for the second year, 90 percent of that sum; for the third year, 80 percent of that sum; for the fourth year, 70 percent of that sum; for the fifth year, 60 percent of that sum; for the sixth year, 50 percent of that sum; for the seventh year, 40 percent of that sum; for the eighth year, 30 percent of that sum; for the ninth year, 25 percent of that sum; and for the 10th year, 20 percent of that sum; and for the 11th year and each succeeding year, 15 percent of that sum; provided, however, that the minimum tax shall be the sum of one dollar ($1). Notwithstanding this subdivision, the market value of a trailer coach first sold on and after January 1, 1966, which that is required to be moved under permit as authorized in Section 35790 of the Vehicle Code, shall be determined by the schedule in Section 10753.3.

(d)This section shall cease to be operative on the first day of the month following the month in which the Department of Motor Vehicles is notified by the Department of Finance of a final judicial determination by the California Supreme Court or any California court of appeal of either of the following:

(1)The allocation of funds from the Vehicle License Fee Account or the Vehicle License Fee Growth Account of the Local Revenue Fund established during the 1991–92 Regular Session is in violation of Section 15 of Article XI of the California Constitution.

(2)The state is obligated to reimburse counties for costs of providing medical services to medically indigent adults pursuant to Chapters 328 and 1594 of the Statutes of 1982.

SEC. 2.

 Section 10753.8 of the Revenue and Taxation Code is amended to read:

10753.8.
 (a)In addition to the license fee for any vehicle calculated pursuant to Section 10752, a surcharge in an amount equal to 2.2 percent of the fee under Section 10752 shall be added to that fee for any initial or original registration of any vehicle never before registered in this state for which the fees become due on or after August 1, 1991, and before August 1, 1992, and for any renewal of registration with an expiration date on or after August 1, 1991, and before August 1, 1992.

(b)This section shall cease to be operative on the first day of the month following the month in which the Department of Motor Vehicles is notified by the Department of Finance of a final judicial determination by the California Supreme Court or any California court of appeal of either of the following:

(1)The allocation of funds from the Vehicle License Fee Account or the Vehicle License Fee Growth Account of the Local Revenue Fund established during the 1991–92 Regular Session is in violation of Section 15 of Article XI of the California Constitution.

(2)The state is obligated to reimburse counties for costs of providing medical services to medically indigent adults pursuant to Chapters 328 and 1594 of the Statutes of 1982.

SEC. 3.

 Section 11001.5 of the Revenue and Taxation Code is amended to read:

11001.5.
 (a) (1) Notwithstanding Section 11001, and except as provided in paragraph 2 and in subdivision (b), 24.33 percent of the moneys collected by the department under this part shall be reported monthly to the Controller, and at the same time, deposited in the State Treasury to the credit of the Local Revenue Fund, as established pursuant to Section 17600 of the Welfare and Institutions Code. All other moneys collected by the department under this part shall continue to be deposited to the credit of the Motor Vehicle License Fee Account in the Transportation Tax Fund and allocated to each city, county, and city and county as otherwise provided by law.
(2) For the period beginning on and after July 1, 2003, and ending on July 1, 2004, the Controller shall deposit an amount equal to 28.07 percent of the moneys collected by the department under this part in the State Treasury to the credit of the Local Revenue Fund. All other moneys collected by the department under this part shall continue to be deposited to the credit of the Motor Vehicle License Fee Account in the Transportation Tax Fund and allocated to each city, county, and city and county as otherwise provided by law.
(b) Notwithstanding Section 11001, net funds collected as a result of procedures developed for greater compliance with vehicle license fee laws in order to increase the amount of vehicle license fee collections shall be reported monthly to the Controller, and at the same time, deposited in the State Treasury to the credit of the Vehicle License Fee Collection Account of the Local Revenue Fund as established pursuant to Section 17600 of the Welfare and Institutions Code. All revenues in excess of fourteen million dollars ($14,000,000) in any fiscal year shall be allocated to cities and counties as specified in subdivisions (c) and (d) of Section 11005.
(c) Notwithstanding Section 11001, 25.72 percent of the moneys collected by the department on or after August 1, 1991, and before August 1, 1992, under this part shall be reported monthly to the Controller, and at the same time, deposited in the State Treasury to the credit of the Local Revenue Fund, as established pursuant to Section 17600 of the Welfare and Institutions Code. All other moneys collected by the department under this part shall continue to be deposited to the credit of the Motor Vehicle License Fee Account in the Transportation Tax Fund and allocated to each city, county, and city and county as otherwise provided by law.

(d)This section shall cease to be operative on the first day of the month following the month in which the Department of Motor Vehicles is notified by the Department of Finance of a final judicial determination by the California Supreme Court or any California court of appeal of either of the following:

(1)The allocation of funds from the Vehicle License Fee Account or the Vehicle License Fee Growth Account of the Local Revenue Fund established during the 1991–92 Regular Session is in violation of Section 15 of Article XI of the California Constitution.

(2)The state is obligated to reimburse counties for costs of providing medical services to medically indigent adults pursuant to Chapters 328 and 1594 of the Statutes of 1982.

SEC. 4.

 Section 210 of Chapter 89 of the Statutes of 1991 is repealed.

Any amendments to the Vehicle License Fee Law, in the 1991–92 Regular Session, which result in an increase in the vehicle license fee paid, shall cease to be operative on the first day of the month following the month in which the Department of Motor Vehicles is notified by the Department of Finance of a final judicial determination by a California court of appellate jurisdiction of either of the following:

(a)The allocation of funds from the Vehicle License Fee Account or the Vehicle License Fee Growth Account from the Local Revenue Fund established during the 1991–92 Regular Session is in violation of Section 15 of Article XI of the California Constitution.

(b)The state is obligated to reimburse counties for costs of providing medical services to medically indigent adults pursuant to Chapter 328 of the Statutes of 1982, and Chapter 1594, of the Statutes of 1982.

SEC. 5.

 Section 40 of Chapter 91 of the Statutes of 1991 is amended to read:

Sec. 40.
 (a)In the event of a final judicial determination by a California court of appellate jurisdiction that the revenues collected pursuant to Sections 6051.2 and 6201.2 of the Revenue and Taxation Code are General Fund proceeds of taxes which that may be appropriated pursuant to Article XIII B of the California Constitution or allocated local proceeds of taxes as used in paragraph (2) of subdivision (b) of Article XVI of the California Constitution, then Sections 6051.2 and 6201.2 of the Revenue and Taxation Code shall cease to be operative on the first day of the first month of the calendar quarter following notification to the State Board of Equalization by the Department of Finance of the determination.

(b)Any amendments to the Vehicle License Fee Law, in the 1991–92 Regular Session, which result in an increase in the vehicle license fee paid, shall cease to be operative on the first day of the month following the month in which the Department of Motor Vehicles is notified by the Department of Finance of a final judicial determination by a California court of appellate jurisdiction of either of the following:

(1)The allocation of funds from the Vehicle License Account or the Growth Account from the Local Revenue Fund established during the 1991–92 Regular Session is in violation of Section 15 of Article XI of the California Constitution.

(2)The state is obligated to reimburse counties for costs of providing medical services to medically indigent adults pursuant to Chapters 328 and 1594 of the Statutes of 1982.

SEC. 6.

 Section 29 of Chapter 100 of the Statutes of 1993 is repealed.

Any amendment to the Vehicle License Fee Law in the 1991–92 Regular Session of the Legislature that results in any increase in the vehicle license fee paid shall cease to be operative on the first day of the month following the month in which the Department of Motor Vehicles is notified by the Department of Finance of a final judicial determination by a California court of appellate jurisdiction of either of the following:

(a)The allocation of funds from the Vehicle License Fee Account or the Vehicle License Fee Growth Account of the Local Revenue Fund established during the 1991–92 Regular Session of the Legislature is in violation of Section 5 of Article XI of the California Constitution.

(b)The state is obligated to reimburse counties for the costs of providing medical services to medically indigent adults pursuant to Chapter 328 of the Statutes of 1982 and Chapter 1594 of the Statutes of 1982.

SEC. 7.

 Notwithstanding any other provision of law, any amendment to the Vehicle License Fee Law in the 1991–92 Regular Session of the Legislature that resulted in an increase in the vehicle license fee shall be operative even if there is a final judicial determination by a California court of appellate jurisdiction that makes a finding of either of the following:
(a) The allocation of funds from the Vehicle License Fee Account or the Growth Account from the Local Revenue Fund established during the 1991–92 Regular Session is in violation of Section 15 of Article XI of the California Constitution.
(b) The state is obligated to reimburse counties for costs of providing medical services to medically indigent adults pursuant to Chapters 328 and 1594 of the Statutes of 1982.

SEC. 8.

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