BILL NUMBER: AB 1342	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member Evans

                        FEBRUARY 27, 2009

   An act to add Chapter 3.8 (commencing with Section 7295) to Part
1.7 of Division 2 of the Revenue and Taxation Code, relating to
taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1342, as amended, Evans. Local taxation: income taxes: vehicle
license fees.
   Existing law authorizes various local governmental entities to
impose local taxes for various purposes.
   This bill would authorize the board of supervisors of any county,
by ordinance, to  impose   propose to the voters
 either a  local  personal income tax or a  local
 vehicle license fee, or both, in accordance with specified
requirements.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares the following:
   (a) Proposition 13 has reduced local property taxes by
approximately 50 percent.
   (b) In response to the enactment of Proposition 13, the state has
provided local governmental agencies with increased amounts of state
funds in order to maintain police, school, and other local services.
   (c) Proposition 13 has resulted in increased state control and
decreased local control with respect to the provision local
governmental services.
   (d) The state is experiencing great difficulty in providing state
funds to maintain local governmental services at historical levels.
   (e) It is appropriate and necessary to shift some authority,
control, and responsibility back to local governmental agencies in
order to allow those agencies to determine the level of services
appropriate for their citizens.
  SEC. 2.  Chapter 3.8 (commencing with Section 7295) is added to
Part 1.7 of Division 2 of the Revenue and Taxation Code, to read:
      CHAPTER 3.8.  COUNTY INCOME TAXES AND VEHICLE LICENSE FEES


   7295.  (a) In addition to any other tax authority provided by law,
the board of supervisors of any county may, by ordinance, impose
either or both of the following in accordance with all jurisdictional
and other requirements, including all applicable voter approval
requirements, imposed by law:
   (1) A personal income tax, as follows:
   (A) The tax is imposed on taxable income in a manner similar to
the tax imposed by the Personal Income Tax Law.
   (B) The tax shall be administered by the Franchise Tax Board.
   (C) The Franchise Tax Board shall transmit all revenues, less its
costs of administration and any refunds, to the county in which the
tax is imposed.
   (2) A license fee for the privilege of operating upon the public
highways in this state any vehicle of a type which is subject to
registration under the Vehicle Code, as follows:
   (A) The annual amount of the license fee for any vehicle shall not
exceed 2 percent of the market value of that vehicle, and shall be
imposed in a manner similar to the fee imposed by the Vehicle License
Fee Law.
   (B) The tax shall be administered by the Department of Motor
Vehicles. 
    7295.    Notwithstanding Section 17041.5, in
addition to any other tax authority provided by law, the board of
supervisors of any county or city and county may, by ordinance, place
on the ballot either or both of the following for consideration by
the voters in accordance with all constitutional and statutory
requirements:  
   (a) A local personal income tax subject to the following
conditions:  
   (1) The local personal income tax shall be calculated as a
percentage of state personal income taxes paid by a resident of the
county in which the local personal income tax is imposed during the
corresponding year, excluding any refundable portions of refundable
credits.  
   (2) The local personal income tax shall be assessed and collected
by the Franchise Tax Board.  
   (3) The Franchise Tax Board shall transmit all revenues, less its
cost of administration, to the county or city and county in which the
local personal income tax is imposed.  
   (b) A local license fee on any vehicle, registered within the
county or city and county in which the local license fee is imposed,
that is subject to registration under the Vehicle Code and on which a
vehicle license fee is imposed pursuant to Part 5 (commencing with
Section 10701), subject to the following conditions:  
   (1) The aggregate license fee rate imposed pursuant to this
section and Part 5 (commencing with Section 10701) on any vehicle
shall not exceed 2 percent of the market value of that vehicle.

   (2) The local license fee shall be assessed and collected in the
same manner as the fee imposed by Part 5 (commencing with Section
10701).  
   (3) The local license fee shall be administered by the Department
of Motor Vehicles.  
   (C) 
    (4)    The Department of Motor Vehicles shall
transmit all revenues, less its costs of administration and any
refunds, to the county in which the fee is imposed.