BILL NUMBER: SB 688	CHAPTERED  07/07/99

	CHAPTER   76
	FILED WITH SECRETARY OF STATE   JULY 7, 1999
	APPROVED BY GOVERNOR   JULY 7, 1999
	PASSED THE SENATE   JULY 1, 1999
	PASSED THE ASSEMBLY   JUNE 16, 1999
	AMENDED IN ASSEMBLY   JUNE 16, 1999

INTRODUCED BY   Senator Burton and Assembly Member Granlund
   (Coauthor:  Senator Murray)
   (Coauthors:  Assembly Members Oller, Maldonado, Strickland,
Maddox, Robert Pacheco, and Pescetti)

                        FEBRUARY 24, 1999

   An act to add Section 10754.1 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 688, Burton.   Vehicle license fees:  offset:  internationally
registered vehicles.
   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.  For vehicle license fees
with a final due date on or after January 1, 1999, existing law
establishes a permanent offset in the amount of 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 be applied to
specified future calendar years.
   This bill would deem vehicle license fees, due in 1998 on or
before December 31 of that year with respect to an internationally
registered vehicle, to have had a final due date during the 1999
calendar year.  This bill would state the intent of the Legislature
with respect to that provision, and would require the Department of
Motor Vehicles to apply the motor vehicle license fee offsets
resulting from this bill to motor vehicle license fees that will
become due and payable in 1999 with respect to internationally
registered vehicles.
   This bill would take effect immediately as a tax levy.


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


  SECTION 1.  Section 10754.1 is added to the Revenue and Taxation
Code, to read:
   10754.1.  For purposes of applying paragraph (1) of subdivision
(b) of Section 10754, the vehicle license fees, due in 1998 on or
before December 31 of that year for a vehicle subject to the
International Registration Program as described in Section 8052 of
the Vehicle Code, are deemed to have had a final due date in the 1999
calendar year.  It is the intent of the Legislature that this
section be implemented to apply the 25 percent offset specified in
paragraph (1) of subdivision (a) of Section 10754 to the vehicle
license fees described in the preceding sentence.  The department
shall apply the amount of each vehicle license fee reduction
resulting from this section against the amount of vehicle license
fees due and payable on the part of the relevant registrant in 1999.

  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.