BILL NUMBER: SB 636CHAPTERED BILL TEXT CHAPTER 605 FILED WITH SECRETARY OF STATE OCTOBER 11, 2009 APPROVED BY GOVERNOR OCTOBER 11, 2009 PASSED THE SENATE MAY 14, 2009 PASSED THE ASSEMBLY AUGUST 20, 2009 AMENDED IN SENATE APRIL 30, 2009 AMENDED IN SENATE APRIL 13, 2009 INTRODUCED BY Senator Ashburn FEBRUARY 27, 2009 An act to add Section 10752.5 to the Revenue and Taxation Code, relating to vehicle license fees. LEGISLATIVE COUNSEL'S DIGEST SB 636, Ashburn. Vehicle license fees. 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 0.65% of the market value of that vehicle, as provided. Existing law, on and after May 19, 2009, increases that rate to 1% for specified vehicles and requires that the revenues derived from the increase be deposited into the General Fund. Existing law, on and after May 19, 2009, also adds a sum equal to 0.15% of the market value of specified vehicles, as determined by the Department of Motor Vehicles, to the vehicle license fee, and requires that this sum be deposited in the General Fund and transferred to the Local Safety and Protection Account, which is continuously appropriated for specified purposes. This bill would state that the additional revenue resulting from these increases in the vehicle license fee is not revenue derived from the 0.65% rate for purposes of a local ordinance that governs the expenditure of funds received by Nevada County from the vehicle license fee. The bill would state the findings and declarations of the Legislature concerning the need for special legislation. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 10752.5 is added to the Revenue and Taxation Code, to read: 10752.5. (a) The additional revenue resulting from the amendments made to Sections 10752 and 10752.1, and the addition of Section 17052.2, by Chapter 18 of the Statutes of 2009, Third Extraordinary Session, is not revenue derived from taxes imposed pursuant to this part that is subject to subdivision (a) of Section 15 of Article XI of the California Constitution, for purposes of a local ordinance that governs the expenditure of funds received by Nevada County from the taxes imposed pursuant to this part. (b) This section shall cease to be operative on July 1, 2011, unless the Director of Finance makes the notification pursuant to Section 99040 of the Government Code, in which case this section shall cease to be operative on July 1, 2013. SEC. 2. The Legislature finds and declares that due to unique circumstances relating to a local ordinance governing the expenditure of Vehicle License Fee funds received by Nevada County, a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution. Therefore, this act is necessarily applicable only to Nevada County.