BILL NUMBER: AB 799 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 22, 2006
AMENDED IN SENATE JUNE 21, 2006
AMENDED IN ASSEMBLY MAY 27, 2005
INTRODUCED BY Assembly Member Leno
FEBRUARY 18, 2005
An act to add Part 5.6 (commencing with Section 11160) to Division
2 of the Revenue and Taxation Code, relating to local government
finance.
LEGISLATIVE COUNSEL'S DIGEST
AB 799, as amended, Leno Local vehicle license fee: San
Francisco.
Existing law authorizes certain counties to impose a local vehicle
license fee of $10 per year, as provided, for the privilege of
operating specified vehicles on public roads in the county. Existing
law requires a county imposing this fee to contract with the
Department of Motor Vehicles to collect and administer the fee, as
specified.
This bill would authorize the City and County of San Francisco to
impose a local vehicle license fee for specified vehicles if certain
conditions, including approval by local voters, are met. This bill
also would require the city and county to contract with the
department to collect and administer the fee, as provided.
The Personal Income Tax Law and the Corporation Tax Law authorize
various deductions against the income that is otherwise subject to
tax under those laws, including a deduction for local taxes that were
paid or incurred by a taxpayer.
This bill would require the Franchise Tax Board to notify the
department of estimated revenue losses to the state resulting from
taxpayers deducting, for purposes of the Personal Income Tax Law and
the Corporation Tax Law, the local vehicle license fees authorized by
this bill. This bill also would require the department to transmit
from the fees collected an amount equal to these reported losses for
deposit in the General Fund, as specified, and to transmit to the
board an amount equal to the board's administrative costs in making
this report.
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. Part 5.6 (commencing with Section 11160) is added to
Division 2 of the Revenue and Taxation Code, to read:
PART 5.6. CITY AND COUNTY OF SAN FRANCISCO VEHICLE LICENSE FEE
LAW
11160. This part is applicable only to the City and County of San
Francisco.
11161. For purposes of this part:
(a) "Board of supervisors" means the Board of Supervisors of the
City and County of San Francisco.
(b) "City and county" means the City and County of San Francisco.
(c) "Department" means the Department of Motor Vehicles.
(d) "Market value" has the same meaning and shall be determined in
the same manner as required under Part 5 (commencing with Section
10701) of Division 2.
(e) "Person" includes an individual, a firm, a corporation, a
limited liability company, a partnership, or any other legal entity.
(f) "Resident of the city and county" means a person whose
address, as reflected in department registration records, is in the
city and county, but does not include a person that establishes to
the satisfaction of the department that the person's place of
residence is elsewhere.
11162. Notwithstanding Section 10758, the board of supervisors
may, by ordinance, impose a local vehicle license fee for general
revenue purposes pursuant to this part, if all of the following
conditions are met:
(a) The ordinance proposing the fee complies with both of the
following:
(1) Section 11163.
(2) Article 3.7 (commencing with Section 53720) of Chapter 4 of
Division 2 of Title 5 of the Government Code.
(b) The ordinance proposing the fee is approved by two-thirds of
all members of the board of supervisors.
(c) The ordinance proposing the fee is submitted to the electorate
of the city and county and is approved by a majority vote of the
voters voting on the ordinance.
(d) The board of supervisors transmits to the department and the
Franchise Tax Board a certified copy of the ordinance imposing that
fee immediately after the results of the election described in
subdivision (c) are certified.
11163. An ordinance imposing a local vehicle license fee pursuant
to this part shall contain provisions in substance as follows:
(a) A provision that the fee is imposed for the privilege of a
resident of the city and county to operate upon the public highways
in the city and county a vehicle or trailer coach, the registrant of
which is subject to tax under Part 5 (commencing with Section 10701).
(b) (1) A provision establishing the annual amount of the fee at a
rate that equals the difference between the following two rates:
(A) Two percent of the market value of the vehicle or trailer
coach.
(B) The rate, including any offset to that rate, set forth in Part
5 (commencing with Section 10701), for a vehicle or trailer coach.
(2) A provision that the rate established under the provision
described in paragraph (1) is subject to both of the following:
(A) That the rate may not exceed 2 percent of the market value of
the vehicle or trailer coach.
(B) That any adjustment that is required to be made to the rate
because of a change in the rate, or any offset to that rate, set
forth in Part 5 (commencing with Section 10701), shall not take
effect until the first day of the first fiscal year that follows the
fiscal year in which the change to the rate or offset set forth in
that part became operative.
(c) A provision that the fee will be imposed beginning on the
first January 1 following voter approval of the ordinance.
(c) A provision that the fee will begin to be imposed as follows:
(1) If the election in which the ordinance receives voter approval
occurs between January 1 and June 30, on the first January 1 that
follows that election.
(2) If the election in which the ordinance receives voter approval
occurs between July 1 and December 31, on the first July 1 that
follows that election.
(d) Provisions identical to those contained in Part 5 (commencing
with Section 10701), insofar as they relate to vehicle license fees
and are applicable, except that the name of the city and county as
the taxing agency shall be substituted for that of the state.
(e) A provision that all amendments, subsequent to the effective
date of the local vehicle license fee ordinance, to Part 5
(commencing with Section 10701) relating to vehicle license fees and
not inconsistent with this part, shall automatically be incorporated
into the local vehicle license fee ordinance.
(f) A provision that requires the city and county to contract with
the department, which contract shall contain provisions in substance
as follows:
(1) A requirement that the department perform all functions
incident to the administration and collection of the local vehicle
license fee.
(2) A provision specifying the manner in which refunds to
licensees pursuant to Part 5 (commencing with Section 10701), as
incorporated in the local vehicle license fee ordinance pursuant to
subdivisions (c) and (d), will be made and administered.
(3) A provision that requires the city and county to pay the
department for the initial setup and programming costs identified by
the department.
11164. The department shall do all of the following:
(a) Collect the local vehicle license fee pursuant to a contract
with the city and county.
(b) Deduct its costs in administering the local vehicle license
fee from the fees collected under subdivision (a).
(c) (1) From the fees collected under subdivision (a), transmit to
the Controller for deposit in the General Fund the amount reported
under subdivision (a) of Section 11166.
(2) From the fees collected under subdivision (a), transmit to the
Franchise Tax Board the amount reported under subdivision (b) of
Section 11166.
(d) Transmit revenues derived from the fees collected under
subdivision (a) to the city and county as promptly as feasible.
(e) Report annually to the Franchise Tax Board, at a time and in
a manner prescribed by the Franchise Tax Board, the names, addresses,
and the amount paid by each person or entity that paid a tax imposed
under this part in the prior year, and the taxpayer identification
numbers or social security numbers of these same persons.
11165. This part shall not be construed to supplant any moneys
that the state apportions to the City and County of San Francisco,
including, but not limited to, moneys apportioned to that entity
under the Vehicle License Fee Law set forth in Part 5 (commencing
with Section 10701), or any successor to that law.
11166. On or before January 1 of the second year that follows a
year, or portion thereof, in which a tax is imposed pursuant to this
part, the Franchise Tax Board shall report to the department both of
the following:
(a) An estimate of the total amount of the revenue loss to the
state for the prior year resulting from deductions taken under the
Personal Income Tax Law (Part 10 (commencing with Section 17001)) and
the Corporation Tax Law (Part 11 (commencing with Section 23001))
for taxes paid or incurred as a result of a tax being imposed
pursuant to this part.
(b) The total amount of costs incurred by the Franchise Tax Board
for determining and reporting the amount described in subdivision
(a).
SEC. 2. The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the unique fiscal hardship being experienced in the City
and County of San Francisco in providing vital public services.