Vehicles: vehicle license fee and registration fee.

(1) Existing law requires the amount appropriated by the Legislature for the use of the Department of Motor Vehicles (DMV) and the Franchise Tax Board (FTB) for the enforcement of the Vehicle License Fee Law to be calculated as specified and transferred from the Motor Vehicle License Fee Account in the Transportation Tax Fund to the Motor Vehicle Account in the State Transportation Fund. This bill would instead require the Legislature to determine and appropriate annually an amount for the use of the DMV and the FTB for the enforcement of the Vehicle License Fee Law. The bill would deem, for the 2011–12 fiscal year, $25,000,000 as the cost to the DMV for the collection of the motor vehicle license fee. (2) Existing law requires the moneys in the Motor Vehicle License Fee Account in the Transportation Tax Fund that remain unexpended at the close of business on the last day of each calendar month to be allocated by the Controller by the 10th day of the following month for specified purposes. This bill would instead require the Controller, on and after July 1, 2011, to allocate those moneys to the Local Law Enforcement Services Account in the Local Revenue Fund 2011 for allocation to cities, counties, and cities and counties. (3) Existing law requires the DMV to charge a registration fee of $31 on every vehicle or trailer coach, as specified. This bill would require the DMV, on July 1, 2011, and thereafter, to charge a registration fee of $43 on every vehicle or trailer coach, as specified, with the proceeds from the increase to be used only in connection with the regulation of vehicles. (4) The Vehicle License Fee Law, in lieu of any ad valorem property tax upon vehicles, imposes an annual license fee for any vehicle subject to registration in this state in the amount of 1% of the market value of that vehicle, as provided, for a specified amount of time. Existing law also, until June 30, 2011, imposes an additional tax equal to 0.15% of the market value of specified vehicles, as determined by the DMV, to the vehicle license fee, to be deposited in the General Fund and transferred to the Local Safety and Protection Account. Existing law requires all moneys in the Local Safety and Protection Account to be continuously appropriated, without regard to fiscal year, to the Controller for allocation. This bill would specify that those rates apply to all initial and renewal registrations due on and after May 1, 2009, but before July 1, 2011. This bill would also specify that all revenues derived from the additional 0.15% tax rate received after June 30, 2011, are deemed to have been received during the 2010–11 fiscal year for purposes of allocation by the Controller. (5) Existing law requires that, in accordance with a specified schedule, the Controller allocate moneys to each county, city, or city and county, as general purpose revenues, from the Vehicle License Fee Account of the Local Revenue Fund. This bill would require the Controller to calculate the difference between the total amount of vehicle license fee proceeds deposited to the credit of the Local Revenue Fund and deposited into the Vehicle License Fee Account for the period of July 16, 2009, to July 15, 2010, inclusive, and the amount deposited for the period of July 16, 2010, to July 15, 2011, inclusive. This bill would deem, of vehicle license fee proceeds deposited into the Vehicle License Fee Account after July 15, 2011, an amount equal to that difference to have been deposited during the period of July 16, 2010, to July 15, 2011, inclusive, and allocated to cities, counties, and a city and county as if those proceeds had been received during the 2010–11 fiscal year. (6) This bill would state the intent of the Legislature that the DMV, in conjunction with the Department of Finance, should develop a method to allocate costs and develop a cost model allocating the costs associated with the registration of a vehicle by the DMV to the vehicle registration fee and to identify costs attributable to the collection of other specified fees. (7) This bill would appropriate $1,000 from the Motor Vehicle Account in the State Transportation Fund to the Department of Motor Vehicles for certain administrative costs, thereby making an appropriation. (8) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.