HomeMy WebLinkAboutMINUTES - 04281998 - C25 To: BOARD OF SUPERVISORS
Contra
f
FROM: Costa BATCHELOR, COUNTY ADMINISTRATOR
wz County
DATE: April 23, 1998 _ =
SUBJECT: LEGISLATION: SS 2001 (Hur#t)
SPECIFIC REOUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ADOPT a position in OPPOSITION to SB 2001 by Senator RobHurtt which, as
introduced, would immediately repeal the entire vehicle license fee with no
replacement source of revenue for local governments.
All revenues generated by the VLF are constitutionally guaranteed to local
governments (Article,XI, 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 2001 would abolish the Vehicle License Fees (VLF).
Statewide, the Governor's Budget projects the VLF to generate $2.7 billion, with
counties receiving $1.6 billion and cities receiving $1.1 billion. In addition, $951
million in VLF revenue goes to Realignment. An additional $200' million goes to
DMV administration. Thus, the total impact of VLF statewide is $3.9 billion.
Staff is concerned that enactment of SB 2001 in the form in which it has been
introduced would be detrimental for the County for the following reasons:
•
Repealing VLF without replacing it with any other form ofrevenue would
require immediate and massive reductions in services and layoff of staff. The
County would have to cut nearly $60 million from its 1998-y*99 budget.
CONTINUED ON ATTACHMENT: YES SIGNATURE
7RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON April 28, 1998 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.
If
1 t/
RETESTEDy�r nl
Contact: PHIL BATCHELOR,CLERKyOF THE BOARD OF
cc: SUPERVISORS AND COUNTY ADMINISTRATOR
See Page 2
BY DEPUTY
..............-..............
• Rather than further eroding revenue that is available to local governments, we
believe the State should return to cities and counties the property tax that has
been taken over the past six years (ERAF).
For these reasons, it is recommended that the Board of Supervisors oppose SB
2001.
cc: County Administrator
Auditor-Controller
Health Services Director
Les Spahnn
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-
SENATE BILL No. 2001
Introduced by Senator Hurtt
February 20, 1998
An act to repeal Part 5 (commencing with Section 10701)
of Division 2 of the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy.
LEGLSLAME COUNSEL'S DIGEST
SB 2001, as introduced, Hurtt. Vehicles: license tax.
The Vehicle License Fee Law provides that the annual
amount of the license fee for any vehicle is 2% of the market
value of the vehicle, as specified.
This bill would abolish the vehicle license fee.
This 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 California do enact as fbBows.
1 SECTION 1. Part 5 (commencing with Section
2 ' 10701) of Division 2 of the Revenue and Taxation Code is
3 repealed.
4 SEC. 2. This act provides for a tax levy within the
5 meaning of Article IV of the Constitution and shall go into
f immediate effect.
d
99