HomeMy WebLinkAboutMINUTES - 04281998 - C24 .G-
TO: BOARD OF SUPERVISORS Contra
FROM: J
PHIL BATCHELOR, 'COUNTY ADMINISTRATOR �I, -- � � Costa
County
DATE: April 23, 1998 ''A c `
SUBJECT: LEGISLATION: SB 1998 (Hunt)
SPECIFIC REOUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ADOPT a position in OPPOSITION to SB 1998 which, as introduced, would
decrease the amount of motor vehicle license fee imposed on car owners, would
reduce the State sales tax and would abolish the excise tax on alcoholic beverages.
BACKGROUND:
All revenues generated by the VLF are constitutionally guaranteed to local
governments (Article X1, Section 15 [a]). Contra Costa County receives $39.0 million
in VLF revenue, plus $20.6 million in VLF revenue for Realignment. The cities in
Contra Costa County receive an additional $27.0 million in VLF revenue.
SB 1998 proposes to adjust the method of calculating the annual depreciation for the
purpose of determining the amount of the vehicle license fee and would thereby
decrease the amount of motor vehicle license fees that are imposed.
In addition, SB 1998 would reduce the State's share of the sales tax by 3/4¢. Finally,
SB 1998 'would repeal the excise tax which is currently imposed on alcoholic
beverages.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)*.
ACTION OF BOARD ON ril28, 1,03 APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. Q
ATTESTED r"
COl1t8Ct' PHIL ATCHELOR,CLERK OF THE BOARD OF
cc:
Contact:
Page 2 SUPERVISORS AND COUNTY ADMINISTRATOR
BY /.��iY �'� •� _ DEPUTY
L
Staff is concerned that enactment of this bill in the form in which it has been
introduced would be detrimental for the County for the following reasons:
• Reducing VLF revenue without a constitutionally guaranteed replacement
source of revenue places all cities and counties in jeopardy of making to make
further reductions in services.
• Reducing sales tax revenue received by the State requires the State to make
program reductions, many of which could impact counties.
• Eliminating the excise tax on alcoholic beverages sends the wrong message
to the general public by making these beverages less expensive and therefore
more accessible.
• We believe the State should return to cities and counties the property tax that
has been taken over the past six years (ERAF) before a tax cut of this size is
seriously considered.
For these reasons, it is recommended that the Board of Supervisors oppose SB
1998.
SB 1998 failed passage in the Senate Revenue & Taxation Committee on April 15,
1998, but was given reconsideration, meaning that the bill is not yet dead for this
year and could be voted on again in the future.
cc: County Administrator
Auditor-Controller
Health Services Director
LesSpahnn
Heim, Noack, Kelly & Spahnn
1121 L Street, Suite 100
Sacramento, CA 95814
Casey Sparks Kaneko, Executive Director
Urban Counties Caucus
1100 K Street, Suite 101
Sacramento, CA 95814
Steve Szalay, Executive Director
California State Association of Counties
1100 K Street, Suite 101
Sacramento, CA 95814
-2-
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SENATE BILL No. 1998
introduced by Senators Hurtt, Knight, and Lewis
February 20, 1998
An act to amend Sections 6051 and 6201 of,to repeal Section
10753.2 of, to repeal Chapter 55 (commencing with Section
32220) of Part 14 of Division 2 of,and to repeal and add Section
10753.1 to, the Revenue and Taxation Code, relating to
taxation,, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1998, as introduced, Hurtt. Sales and use taxes: vehicle
license fees: alcoholic beverage taxes.
(1) The Sales and Use Tax Law imposes a tax cin the gross
receipts from the sale in this state of, or the storage, use, or
other consumption in this state of,tangible personal property.
This bill would reduce that rate by3/4 Of Mon and after
July 1, 1998.
(2) The Vehicle License Fee Law-provides that the annual
amount of the license fee for any vehicle, other than a trailer
coach which is required to be moved under permit, is 2% of
the market value of the vehicle, as specified. It provides for
the determination of the market value of any vehicle and for
the annual depreciation of the market value of any vehicle for
the purpose of determining the amount of the vehicle license
fee.
This bill would make changes in the method of calculating
the annual depreciation for the purpose of determining the
amount of the vehicle license fee and would thereby decrease
the amounts of motor vehicle license fees imposed.
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SB 1998 - 2 -
(3) Under the Alcoholic Beverage Tax Law, a surtax is
imposed at specified rates on beer, wine, sparkling hard cider,
and distilled spirits, as specified, and an equivalent
compensating floor stock tax is imposed on beer, . wine,
sparkling hard cider, and distilled spirits, as specified, in the
possession of licensed persons except with respect to certain
licensed persons.
This bill would repeal those provisions.
(4) The bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State*-mandated local program: no.
The people of the State of Caffbi-nia do enact as follows.-
1 SECTION 1. Section 6051 of the Revenue and
2 Taxation Code is amended to read:
3 6051. For the privilege of selling tangible personal'
4 property at retail a tax is hereby imposed upon *0
5 retailers at the rate of 21/2 percent of the gross receipts
6 of any retailer from the sale of all tangible personal
7 property sold at retail in this state on or after August 1,
8 1933, and to and including June 30, 1935, d at the rate
9 of 3 percent thereafter, and at the rate of 21/2 percent on
10 and after July 1, 1943, and to and including June 30, 1949,
11 and at the rate of 3 percent on and after July 1, 1949, and
12 to and including July 31, 1967, and at the rate of 4 percent
13 on and after August 1, 1967, and to and including June 30,
14 1972, and at the rate of 33/4 percent on and after July 1,
15 1972 and to and including June 30, 1973, and at the rate
16 of 43/4 percent on and after July 1, 1973, and to and
17 including September 30, 1973, and at the rate of 33/4
18 percent on and after October 1, 1973,and to and including
19 March 31, 1974, and at the rate of 43/4 percent until fune
20 30, 1998, and on and after July 1, 1998, at the rate of 4
21 percent thereafter.
22 SEC. 2. Section 6201 of the Revenue and Taxation
23 Code is amended to read:
24 6201. An excise tax is hereby imposed on the storage,
25 use, or other consumption in this state of tangible
26 personal property purchased from any retailer on or after
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-3 — SB 1998
1 July 1, 1935, for storage, use, or other consumption in this
2 state at the rate of 3 percent of the sales price of the
3 property, and at the rate of 21/2 percent on and after July
4 1, 1943, and to and including June 30, 1949, and at the rate
5 of 3 percent on and after July 1, 1949, and to and including
6 July 31, 1967, and at the rate of 4 percent on and after
7 August 1, 1967, and to and including June 30, 1972, and at
8 the rate of 3 3f 4 percent on and after July 1, 1972, and to
9 and including June 30, 1973,and at the rate of 43 f 4 percent
10 on and after July 1, 1973, and to and including September
11 30, 1973, and at the rate of 3s14 percent on and after
12 October 1, 1973, and to and including March 31., 1974, and
13 at the rate of 4 /4 percent u dI June 30, 1998, and on and
14 afterJuly 1, 1998, at the rate of 4 percent thereafter.
15 SEC. 3. Section 10753.1 of the Revenue and Taxation
16 Code is repealed.
17 W4534.1 , After determitikig the eeA priee to the
18 porehas er; ea prem ded in 949 ele, the depa :es t
j 19 shaA e6ssify or reelwaif�every vel4efe pref�e
20 aeeerd4n t itheelassifieet p1m wAferr ittte. 4e.
21 For theperpege of thie part, f e4eissifieet Ph"t is
22 establish eetvAsNn of the esses:a e16%frefa
23 zero deRars J y- to and ifteludingfertyhtine de ars and
24 nin e t '_____~ Bents ( a e ss&em ty delm
25 �te and itteluding eee hundred rAnetyAtitte dem ;ate
26 rAne ee s 9`}; thereafter-, a series of
27 elasses y set ftp ift braekets. hweing a sped of
28 twe hundred dei s ), eensig4ag of that rtmtber of
29 des ae wiI4 permit elassifieioer of A vel, .
30 *0 The mffke6e of et vehiele for eaeh registra+ieft
31 year, starting with the yeer the vehiele wae flrA seWl to it
32 eensumer ae a new YefAele, or Ote year the v . ` le was
33 first purefrased er assembled by the persee applying for
34 erg reg' rat4ott this gtette, er the year the vel le
35 wm sed to the etwreftt registered seer at a wedv#14ele,
36 sha4 be ae fF a s, few the firA year, 85 pereent of a stm
37 a al to the middle point between the extremes of jiffs
38 elass as establish ift subd isi f +–,fer the seeend year,
39 86 pereeftt of th4 swn; for the Ord year, 70 pere , e€
. 40 that s r; for the fewtb year, 56 pereent of tom ; fer
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SB 1998 — 4 -
1
- 4 --
1 Ote fAh year, 443 pereeftt of t he MM; for the gimth year,
2 30 pereeftt of Owt seer; fer the seyeftth Yefif 25 pere
3 of fitftt S"M; fer the year; 46 pereeftt ef
4 fie� N peree of� aed Xhe
5 year mtA eaehmeeeeding year, 5 pereem of that s
6 pe ra OR a iVi.ded; hewever the Ohe rot tm sheA be the
7 qwn of effte " ($I) . Netwith thAs mbdiYis';
8 the market die of a �a11er fint sew of aid mer
9 jatyaa 1-, 1966, Leh is e, i ed to be meyed ;mom
10 perteit as authorized itt Seetie 857-90 of the Vehiele
11 Cede; Ah" be det.71.1 the ge"e Seems
12 IW5 .t .
13 -(-d+ isseet shs beeeme epera#ie eftthefirAdW
14 of Ohe meth "ewithe meth ift eh Ohe
15 Departmettf of titer Vehieles 4s frei=ified by the
16 Pepartmeftt of Finmtee of a fi
17 by the G&I&rM &apremet Geurt er afty Ge4&reetet
18 of appeal of either of the '11
19 The a4eeatiert of fiords &ems the Ve6ele 6eeme
20 Fee A.�eeee er the Vehiele,6eeftse Fee GrewthMeetmt
21 of the leeeJ Reyeift a Fund dished d"rktg the
22 199149 Sessieft ie ift vieWAe of Seetieft 45 of
23 fele X4 of the Gallifemia ewe#
24 -( } Pte sate is #ed o eiwAmne eeta4 s fer
25 eestg of pr+e►v medieal se ie s to medieaAy indigeftt
26 adds purqueat to Gha:pters 338 and 4494 of the Statutes
27 of
28 SEC. 4. Section 10753.1 is added to the Revenue and:
29 Taxation Code, to read:
30 10753.1. (a) After determining the cast price to the
31 purchaser, as provided in this article, the department
32 shall classify or reclassify every vehicle in its proper class
33 according to the classification plan set forth in this section.
34 (b) For the purpose of this part, a classification plan is
35 established consisting of the following classes: a class from
36 zero dollars ($0) to and including forty-nine dollars and
37 ninety-nine cents ($49.99); a class from fifty dollars ($50)
38 to and including one hundred ninety-nine dollars and.
39 ninety-nine cents ($199.99); and, thereafter, a series of
40 classes successively set up in brackets having a spread of
ss
--- 5 -- SB 1998
1. two hundred dollars ($200), consisting of that number of
2 classes as will permit classification of all vehicles.
3 (c) The market value of a vehicle for each registration
4 year, startingwith the year the vehicle was first sold to a
5 consumer as a new vehicle, or the year the vehicle was
6 first purchased or assembled by the person applying for
7 original registration in this state, or the year the vehicle
8 was sold to the current registered owner as a used vehicle,
9 shall be as follows: for the first year, 85 percent of a sum
10 equal to the middle point between the extremes of its
11 class as established in subdivision (b); for the second year,
12 85 percent of that sum; for the third. year, 70 percent of
13 that slum; for the fourth year, 55 percent of that sun; for
y' 14 the fifth year, 40 percent of that sum; for the sixth year,
15 30 percent of that sum; for the seventh year, 25 percent
16 of that sum; for the eighth year, 15 percent of that sun;
17 for the ninth year, 10 percent of that sum; and for the 10th
18 year and each succeeding year, 5 percent of that sum;
19 provided, however, that the mininnum tax shall be the
20 sum of one dollar ($1). Notwithstanding this subdivision,
21 the market value of a trailer coach first sold on and after
22 January 1, 1966, which is required to be moved under
23 permit as authorized in Section 35790 of the Vehicle
24 Code, shall be determined by the schedule in Section
25 10753.3.
26 SEC. 5. Section 10753.2 of the Revenue.and Taxation
27 Code is repealed.
28 10753.9. -�a+ After deterffil"Irg to eest wee to the
29 pal ser, as preyided tift 449 artiele, the deapartment
30 shag essify or reelasgi ereery Yew ift Ae pier ems
31 eteeerdht to theel 'fiat t pleasetfgr#ha s seetiett.
32 -{b+-Fee the ptepese of Otis part,et . l ssifi .& p
33 establiehed eeersistig of the FOAH& uses-ift 1-co-016M frefft
34 ne dollars J to arm ineluding fertyAtine deHm and
35 ftinetyAtiae ee, is (M.99)—, et elms from fifty delkwo-(
36 te and ifteluditig erg handred rittet5/ e deters and
37 aiftety4tr eeM9 { 1 }; end zh,...e.,ft et sexes of
38 elms€► se tift hreekets ming a spread of
39 #tee Bred dors ($M) eensisting of seer romaber of
40 elmses as wi4 perorit eletssifieat4en of a4 Ye tiles:
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- 7 — SR 1998
I SEC. f. Chapter 5.5 (commencing with Section
2 32220) of Fart .I4 of Division 2 of the Revenue and
3 Taxation Code is repealed.
4 SEC. 7. This act provides for a tax levy within the
5 meaning of Article IV of the Constitution and shall go into
6 immediate effect.
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