SB 56,
as amended, Roth. Local governmentbegin delete finance.end deletebegin insert finance: vehicle license fee adjustments.end insert
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. Beginning with the 2004-05 fiscal year and for each fiscal year thereafter, existing law requires that each city, county, and city and county receive a vehicle license fee adjustment amount, as defined, from a Vehicle License Fee Property Tax Compensation Fund that exists in each county treasury. Existing law requires that these amounts be funded from ad valorem property tax revenues otherwise required to be allocated to educational entities.
end insertbegin insertThis bill would, for the 2013-14 fiscal year, provide for a new vehicle license fee adjustment amount, as specified. This bill would also, for the 2013-14 fiscal year and for each fiscal year thereafter, provide for a vehicle license fee adjustment amount for certain cities incorporating after a specified date, as provided.
end insertbegin insertBy imposing additional duties upon local tax officials with respect to the allocation of ad valorem property tax revenues, this bill would impose a state-mandated local program.
end insertbegin insertThe California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
end insertbegin insertThis bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
end insertExisting law required, on and after July 1 2004, and before July 1, 2011, that a specified portion of the motor vehicle license fee revenues deposited to the credit of the Motor Vehicle License Fee Account in the Transportation Tax Fund be allocated first to the County of Orange and next to each city and county meeting specified criteria, including each city that was incorporated from unincorporated territory after August 5, 2004. Existing law requires, on or after July 1, 2011, that the same portion of revenues be deposited into the Local Law Enforcement Services Account in the Local Revenue Fund 2011 for allocation to cities, counties, and cities and counties.
end deleteThis bill would state the Legislature’s intent to enact legislation that would restore funding to cities that either were incorporated or annexed territory after 2004.
end deleteVote: majority.
Appropriation: no.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: begin deleteno end deletebegin insertyesend insert.
The people of the State of California do enact as follows:
begin insertSection 97.70 of the end insertbegin insertRevenue and Taxation Codeend insert
2begin insert is amended to read:end insert
Notwithstanding any other provision of law, for the
42004-05 fiscal year and for each fiscal year thereafter, all of the
5following apply:
6(a) (1) (A) The auditor shall reduce the total amount of ad
7valorem property tax revenue that is otherwise required to be
8allocated to a county’s Educational Revenue Augmentation Fund
9by the countywide vehicle license fee adjustment amount.
10(B) If, for the fiscal year, after complying with Section 97.68
11there is not enough ad valorem property tax revenue that is
12otherwise required to be allocated to a county Educational Revenue
13Augmentation Fund for the auditor to complete the allocation
14reduction
required by subparagraph (A), the auditor shall
15additionally reduce the total amount of ad valorem property tax
16revenue that is otherwise required to be allocated to all school
P3 1districts and community college districts in the county for that
2fiscal year by an amount equal to the difference between the
3countywide vehicle license fee adjustment amount and the amount
4of ad valorem property tax revenue that is otherwise required to
5be allocated to the county Educational Revenue Augmentation
6Fund for that fiscal year. This reduction for each school district
7and community college district in the county shall be the percentage
8share of the total reduction that is equal to the proportion that the
9total amount of ad valorem property tax revenue that is otherwise
10required to be allocated to the school district or community college
11district bears to the total amount of ad valorem property tax revenue
12that is otherwise required to be allocated to all school districts and
13community college districts in a county. For
purposes of this
14subparagraph, “school districts” and “community college districts”
15do not include any districts that are excess tax school entities, as
16defined in Section 95.
17(2) The countywide vehicle license fee adjustment amount shall
18be allocated to the Vehicle License Fee Property Tax Compensation
19Fund that shall be established in the treasury of each county.
20(b) (1) The auditor shall allocate moneys in the Vehicle License
21Fee Property Tax Compensation Fund according to the following:
22(A) Each city in the county shall receive its vehicle license fee
23adjustment amount.
24(B) Each county and city and county shall receive its vehicle
25license fee adjustment amount.
26(2) The auditor shall allocate one-half of the amount specified
27in paragraph (1) on or before January 31 of each fiscal year, and
28the other one-half on or before May 31 of each fiscal year.
29(c) For purposes of this section, all of the following apply:
30(1) “Vehicle license fee adjustment amount” for a particular
31city, county, or a city and county means, subject to an adjustment
32under paragraph (2) and Section 97.71, all of the following:
33(A) For the 2004-05 fiscal year, an amount equal to the
34difference between the following two amounts:
35(i) The estimated total amount of revenue that would have been
36deposited to the credit of the Motor Vehicle License Fee Account
37in the Transportation Tax Fund, including any amounts that would
38have been
certified to the Controller by the auditor of the County
39of Ventura under subdivision (j) of Section 98.02, as that section
40read on January 1, 2004, for distribution under the law as it read
P4 1on January 1, 2004, to the county, city and county, or city for the
22004-05 fiscal year if the fee otherwise due under the Vehicle
3License Fee Law (Pt. 5 (commencing with Section 10701) of Div.
42) was 2 percent of the market value of a vehicle, as specified in
5Section 10752 and 10752.1 as those sections read on January 1,
62004.
7(ii) The estimated total amount of revenue that is required to be
8distributed from the Motor Vehicle License Fee Account in the
9Transportation Tax Fund to the county, city and county, and each
10city in the county for the 2004-05 fiscal year under Section 11005,
11as that section read on the operative date of the act that amended
12this clause.
13(B) (i) Subject to an adjustment under clause (ii), for the
142005-06 fiscal year, the sum of the following two amounts:
15(I) The difference between the following two amounts:
16(Ia)
end delete
17begin insert(end insertbegin insertia)end insert The actual total amount of revenue that would have been
18deposited to the credit of the Motor Vehicle License Fee Account
19in the Transportation Tax Fund, including any amounts that would
20have been certified to the Controller by the auditor of the County
21of Ventura under subdivision (j) of Section 98.02, as that
section
22read on January 1, 2004, for distribution under the law as it read
23on January 1, 2004, to the county, city and county, or city for the
242004-05 fiscal year if the fee otherwise due under the Vehicle
25License Fee Law (Part 5 (commencing with Section 10701) of
26Division 2) was 2 percent of the market value of a vehicle, as
27specified in Sections 10752 and 10752.1 as those sections read on
28January 1, 2004.
29(Ib)
end delete
30begin insert(ib)end insert The actual total amount of revenue that was distributed
31from the Motor Vehicle License Fee Account in the Transportation
32Tax Fund to the county, city and county, and each city in the county
33for the 2004-05 fiscal year under Section 11005, as that section
34read on
the operative date of the act that amended this
35sub-subclause.
36(II) The product of the following two amounts:
37(IIa)
end delete38begin insert(iend insertbegin inserta)end insert The amount described in subclause (I).
39(IIb)
end delete
P5 1begin insert(end insertbegin insertib)end insert The percentage change from the prior fiscal year to the
2current fiscal year in gross taxable assessed valuation within the
3jurisdiction of the entity, as reflected in the equalized assessment
4roll for those fiscal years. For the first fiscal year for which a
5change in a city’s jurisdictional boundaries first applies, the
6percentage change in gross taxable assessed valuation from the
7prior fiscal year to the current fiscal year shall be calculated solely
8on the basis of the city’s previous jurisdictional boundaries, without
9regard to the change in that city’s jurisdictional boundaries. For
10each following fiscal year, the percentage change in gross taxable
11assessed valuation from the prior fiscal year to the current fiscal
12year shall be calculated on the basis of the city’s current
13jurisdictional boundaries.
14(ii) The amount described in clause (i) shall be adjusted as
15follows:
16(I) If the amount described in subclause (I) of clause (i) for a
17particular city, county, or city and county is greater than the amount
18described in subparagraph (A) for that city, county, or city and
19county, the amount described in clause (i) shall be increased by
20an amount equal to this difference.
21(II) If the amount described in subclause (I) of clause (i) for a
22particular city, county, or city and county is less than the amount
23described in subparagraph (A) for that city, county, or city and
24county, the amount described in clause (i) shall be decreased by
25an amount equal to this difference.
26(C) begin deleteFor end deletebegin insertExcept as otherwise provided under subparagraph (D),
27for end insertthe 2006-07 fiscal
year and for each fiscal year thereafter, the
28sum of the following two amounts:
29(i) The vehicle license fee adjustment amount for the prior fiscal
30year, if Section 97.71 and clause (ii) of subparagraph (B) did not
31apply for that fiscal year, for that city, county, and city and county.
32(ii) The product of the following two amounts:
33(I) The amount described in clause (i).
34(II) The percentage change from the prior fiscal year to the
35current fiscal year in gross taxable assessed valuation within the
36jurisdiction of the entity, as reflected in the equalized assessment
37roll for those fiscal years. For the first fiscal year for which a
38change in a city’s jurisdictional boundaries first applies, the
39percentage change in gross taxable assessed valuation from the
40
prior fiscal year to the current fiscal year shall be calculated solely
P6 1on the basis of the city’s previous jurisdictional boundaries, without
2regard to the change in that city’s jurisdictional boundaries. For
3each following fiscal year, the percentage change in gross taxable
4assessed valuation from the prior fiscal year to the current fiscal
5year shall be calculated on the basis of the city’s current
6jurisdictional boundaries.
7(D) Notwithstanding subparagraph (C), for the 2013-14 fiscal
8year, the vehicle license fee adjustment amount shall be equal to
9the sum of the following two amounts:
10(i) The amount described in clause (i) of subparagraph (B) if
11Section 97.71 and clause (ii) of
subparagraph (B) did not apply
12for that fiscal year, for that city, county, and city and county.
13(ii) The product of the following two amounts:
end insertbegin insert14(I) The amount described in clause (i).
end insertbegin insert
15(II) The percentage change from the 2004-05 fiscal year to the
162013-14 fiscal year, inclusive, in gross taxable assessed valuation
17within the jurisdiction of the entity, as reflected in the equalized
18assessment roll for those fiscal years.
19(2) Notwithstanding paragraph (1), “vehicle license fee
20adjustment amount,” for a city incorporating after January 1,
212011, but before January 1, 2013, means the following:
22(A) For the 2013-14 fiscal year, the sum of the following two
23amounts:
24(i) The quotient derived from the following fraction:
end insertbegin insert25(I) The numerator is the product of the following two amounts:
end insertbegin insert
26(ia) The sum of the most recent vehicle license fee adjustment
27amounts determined for all cities in the county incorporated prior
28to 2005.
29(ib) The population of the incorporating city.
end insertbegin insert
30(II) The denominator is the sum of the populations of all cities
31in the county incorporated prior to 2005.
32(ii) Fifty percent of the amount determined in clause (i).
end insertbegin insert
33(B) For the 2014-15 fiscal year, the sum of the following two
34amounts:
35(i) The product of the following two amounts:
end insertbegin insert36(I) The amount described in clause (i) of subparagraph (A).
end insertbegin insert
37(II) The percentage change from the prior fiscal year to the
38current fiscal year in gross taxable assessed valuation within the
39jurisdiction of the entity, as reflected in the equalized assessment
40roll for those fiscal years.
P7 1(ii) Forty percent of the amount determined in clause (i).
end insertbegin insert
2(C) For the 2015-16 fiscal year, the sum of the following two
3amounts:
4(i) The product of the following two amounts:
end insertbegin insert5(I) The amount described in clause (i) of subparagraph (B).
end insertbegin insert
6(II) The percentage change from the prior fiscal year to the
7current fiscal year in gross taxable assessed valuation within the
8jurisdiction of the entity, as reflected in the equalized assessment
9roll for those fiscal years.
10(ii) Thirty percent of the amount determined in clause (i).
end insertbegin insert
11(D) For the 2016-17 fiscal year, the sum of the following two
12amounts:
13(i) The product of the following two amounts:
end insertbegin insert14(I) The amount described in clause (i) of subparagraph (C).
end insertbegin insert
15(II) The percentage change from the prior fiscal year to the
16current fiscal year in gross taxable assessed valuation within the
17jurisdiction of the entity, as reflected in the equalized assessment
18roll for those fiscal years.
19(ii) Twenty percent of the amount determined in clause (i).
end insertbegin insert
20(E) For the 2017-18 fiscal year, the sum of the following two
21
amounts:
22(i) The product of the following two amounts:
end insertbegin insert23(I) The amount described in clause (i) of subparagraph (D).
end insertbegin insert
24(II) The percentage change from the prior fiscal year to the
25current fiscal year in gross taxable assessed valuation within the
26jurisdiction of the entity, as reflected in the equalized assessment
27roll for those fiscal years.
28(ii) Ten percent of the amount determined in clause (i).
end insertbegin insert
29(F) For the 2018-19 fiscal year, the sum of the following two
30amounts:
31(i) The amount described in clause (i) of subparagraph (E).
end insertbegin insert32(ii) The product of the following two amounts:
end insertbegin insert33(I) The amount described in clause (i).
end insertbegin insert
34(II) The percentage change from the prior fiscal year to the
35current fiscal year in gross taxable assessed valuation within the
36jurisdiction of the entity, as reflected in the equalized assessment
37roll for those fiscal years.
38(G) For the 2019-20 fiscal year, and for each fiscal year
39thereafter, the sum of the following two amounts:
P8 1(i) The vehicle license fee adjustment amount for the prior fiscal
2year.
3(ii) The product of the following two amounts:
end insertbegin insert4(I) The amount described in clause (i).
end insertbegin insert
5(II) The percentage change from the prior fiscal year to the
6current fiscal year in gross taxable assessed valuation within the
7jurisdiction of the entity, as reflected in the equalized assessment
8roll for those fiscal years.
9(3) Notwithstanding paragraph (1), “vehicle license fee
10adjustment amount,” for a city incorporating after January 1,
112010, but before January 1, 2011, means the following:
12(A) For the 2013-14 fiscal year, the sum of the following two
13amounts:
14(i) The quotient derived from the following fraction:
end insertbegin insert15(I) The numerator is the product of the following two amounts:
end insertbegin insert
16(ia) The sum of the most recent vehicle license fee adjustment
17amounts determined for all cities in the county incorporated prior
18to 2005.
19(ib) The population of the incorporating city.
end insertbegin insert
20(II) The denominator is the sum of the populations of all cities
21in the county incorporated prior to 2005.
22(ii) Forty percent of the amount determined in clause (i).
end insertbegin insert
23(B) For the 2014-15 fiscal year, the sum of the following two
24amounts:
25(i) The product of the following two amounts:
end insertbegin insert26(I) The amount described in clause (i) of subparagraph (A).
end insertbegin insert
27(II) The percentage change from the prior fiscal year to the
28current fiscal year in gross taxable assessed valuation within the
29jurisdiction of the entity, as reflected in the equalized assessment
30roll for those fiscal years.
31(ii) Thirty percent of the amount determined in clause (i).
end insertbegin insert
32(C) For the 2015-16 fiscal year, the sum of the following two
33amounts:
34(i) The product of the following two amounts:
end insertbegin insert35(I) The amount described in clause (i) of subparagraph (B).
end insertbegin insert
36(II) The percentage change from the prior fiscal year to the
37current fiscal year in gross taxable assessed valuation within the
38jurisdiction of the entity, as reflected in the equalized assessment
39roll for those fiscal years.
40(ii) Twenty percent of the amount determined in clause (i).
end insertbegin insert
P9 1(D) For the 2016-17 fiscal year, the sum of the following two
2amounts:
3(i) The product of the following two amounts:
end insertbegin insert4(I) The amount described in clause (i) of subparagraph (C).
end insertbegin insert
5(II) The percentage change from the prior fiscal year to the
6current fiscal year in gross taxable assessed valuation within the
7jurisdiction of the entity, as reflected in the equalized assessment
8roll for those fiscal years.
9(ii) Ten percent of the amount determined in clause (i).
end insertbegin insert
10(E) For the 2017-18 fiscal year, the sum of the following two
11amounts:
12(i) The amount described in clause (i) of subparagraph (D).
end insertbegin insert13(ii) The product of the following two amounts:
end insertbegin insert14(I) The amount described in clause (i).
end insertbegin insert
15(II) The percentage change from the prior fiscal year to the
16current fiscal year in gross taxable assessed valuation within the
17jurisdiction of the entity, as reflected in the equalized assessment
18roll for those fiscal years.
19(F) For the 2018-19 fiscal year, and for each fiscal year
20thereafter, the sum of the following two amounts:
21(i) The vehicle license fee adjustment amount for the prior fiscal
22year.
23(ii) The product of the following two amounts:
end insertbegin insert24(I) The amount described in clause (i).
end insertbegin insert
25(II) The percentage change from the prior fiscal year to the
26current fiscal year in gross taxable assessed valuation within the
27jurisdiction of the entity, as reflected in the equalized assessment
28roll for those fiscal years.
29(4) Notwithstanding paragraph (1), “vehicle license fee
30adjustment amount,” for a city incorporating after January 1,
312008, but before January 1, 2009, means the following:
32(A) For the 2013-14 fiscal year, the sum of the following two
33amounts:
34(i) The quotient derived from the following fraction:
end insertbegin insert35(I) The numerator is the product of the following two amounts:
end insertbegin insert
36(ia) The sum of the most recent vehicle license fee adjustment
37amounts determined for all cities in the county incorporated prior
38to 2005.
39(ib) The population of the incorporating city.
end insertbegin insert
P10 1(II) The denominator is the sum of the populations of all cities
2in the county incorporated prior to 2005.
3(ii) Twenty percent of the amount determined in clause (i).
end insertbegin insert
4(B) For the 2014-15 fiscal year, the sum of the following two
5amounts:
6(i) The product of the following two amounts:
end insertbegin insert7(I) The amount described in clause (i) of subparagraph (A).
end insertbegin insert
8(II) The percentage change from the prior fiscal year to the
9current fiscal year in gross taxable assessed valuation within the
10jurisdiction of the entity, as reflected in the equalized assessment
11roll for those fiscal years.
12(ii) Ten percent of the amount determined in clause (i).
end insertbegin insert
13(C) For the 2015-16 fiscal year, the sum of the following two
14amounts:
15(i) The amount described in clause (i) of subparagraph (B).
end insertbegin insert16(ii) The product of the following two amounts:
end insertbegin insert17(I) The amount described in clause (i).
end insertbegin insert
18(II) The percentage change from the prior fiscal year to the
19current fiscal year in gross taxable assessed valuation within the
20jurisdiction of the entity, as reflected in the equalized assessment
21roll for those fiscal years.
22(D) For the 2016-17 fiscal year, and for each fiscal year
23thereafter, the sum of the following two amounts:
24(i) The vehicle license fee adjustment amount for the prior fiscal
25year.
26(ii) The product of the following two amounts:
end insertbegin insert27(I) The amount described in clause (i).
end insertbegin insert
28(II) The percentage change from
the prior fiscal year to the
29current fiscal year in gross taxable assessed valuation within the
30jurisdiction of the entity, as reflected in the equalized assessment
31roll for those fiscal years.
32(2)
end delete
33begin insert(5)end insert “Countywide vehicle license fee adjustment amount” means,
34for any fiscal year, the total sum of the amounts described in
35begin delete paragraph (1)end deletebegin insert paragraphs (1) to (4), inclusive,end insert for a county or city
36and county, and each city in the county.
37(3)
end delete
38begin insert(6)end insert On or before June 30 of each fiscal year, the auditor shall
39report to the Controller the vehicle license fee adjustment amount
40for the county and each city in the county for that fiscal year.
P11 1(d) For the 2005-06 fiscal year and each fiscal year thereafter,
2the amounts determined under subdivision (a) of Section 96.1, or
3any successor to that provision, shall not reflect, for a preceding
4fiscal year, any portion of any allocation required by this section.
5(e) For purposes of Section 15 of Article XI of the California
6Constitution, the allocations from a Vehicle License Fee Property
7Tax Compensation Fund constitute successor taxes that are
8otherwise required to be allocated to counties and cities, and as
9
successor taxes, the obligation to make those transfers as required
10by this section shall not be extinguished nor disregarded in any
11manner that adversely affects the security of, or the ability of, a
12county or city to pay the principal and interest on any debts or
13obligations that were funded or secured by that city’s or county’s
14allocated share of motor vehicle license fee revenues.
15(f) This section shall not be construed to do any of the following:
16(1) Reduce any allocations of excess, additional, or remaining
17funds that would otherwise have been allocated to county
18superintendents of schools, cities, counties, and cities and counties
19pursuant to clause (i) of subparagraph (B) of paragraph (4) of
20subdivision (d) of Sections 97.2 and 97.3 or Article 4 (commencing
21with Section 98) had this section not been enacted. The allocations
22required by this section shall be adjusted to
comply with this
23paragraph.
24(2) Require an increased ad valorem property tax revenue
25allocation or increased tax increment allocation to a community
26redevelopment agency.
27(3) Alter the manner in which ad valorem property tax revenue
28growth from fiscal year to fiscal year is otherwise determined or
29allocated in a county.
30(4) Reduce ad valorem property tax revenue allocations required
31under Article 4 (commencing with Section 98).
32(g) Tax exchange or revenue sharing agreements, entered into
33prior to the operative date of this section, between local agencies
34or between local agencies and nonlocal agencies are deemed to be
35modified to account for the reduced vehicle license fee revenues
36resulting from the act that added this section. These agreements
37are
modified in that these reduced revenues are, in kind and in lieu
38thereof, replaced with ad valorem property tax revenue from a
39Vehicle License Fee Property Tax Compensation Fund or an
40Educational Revenue Augmentation Fund.
If the Commission on State Mandates determines that
2this act contains costs mandated by the state, reimbursement to
3local agencies and school districts for those costs shall be made
4pursuant to Part 7 (commencing with Section 17500) of Division
54 of Title 2 of the Government Code.
It is the intent of the Legislature to enact
7legislation that would restore funding to cities that either were
8incorporated or annexed territory after 2004.
O
98