This subject came up a few months ago on the net. The bill (now law)
is AB758. It was passed this Summer in a frenzy of looney new taxes
to "solve" the CA budget deficit. Someone on the net sent me the
entire text of AB758. If anyone wants it, send me a request. Here
is just the digest. (BTW the registration on the Aston Martin went
from $52 to $106)
Ron Knipper
DSC Optilink
707-792-7238
!optilink!knipper
====================== DIGEST OF AB758 ============================
AB 758, Bates. Vehicle license fees: sales and use taxes.
The existing 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, in addition, provide that a surcharge in an amount equal to
2.2% of the motor vehicle license fee shall be added to that fee for any
original registration occurring, or any renewal of registration with an
expiration date, on or after August 1, 1991, and before August 1, 1992. It would
provide that the market value of a vehicle be determined upon the first sale of
a new vehicle to a consumer and upon each sale of a used vehicle to a consumer,
but the market value would not be redetermined upon the sale of a vehicle to
certain family members. It would provide that no adjustment of the license fee
shall be made based on the redetermination of market value of a used vehicle
until the expiration of the current registration. It would also 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 increase the amounts of
motor vehicle license fees imposed.
This bill would provide that the imposition of the surcharge and the changes
in the method of calculating the annual depreciation shall cease to be operative
on the first day of the month following the month the Department of Motor
Vehicles is notified by the Department of Finance of a final judicial
determination, as specified.
This bill would require that a specified percentage of the money collected
from the vehicle license fees be deposited in the Vehicle License Fee Account of
the Local Revenue Fund, as established pursuant to a specified proposed statute
that would be continuously appropriated.
The existing Sales and Use Tax Law provides that, except when a vehicle is
purchased outside this state from the manufacturer or from a vehicle dealer,
whenever the purchaser of a vehicle is required to pay a use tax, the sales
price is rebuttably presumed to be equal to the market value of the vehicle at
the time of purchase for the purpose of calculating the tax. It also treats
commercial vehicles of less than a certain weight as noncommercial vehicles.
This bill would repeal those provisions.
This bill would take effect immediately as a tax levy, but would become
operative on August 1, 1991, as specified.
Appropriation: yes.
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