Attorney General No.

SA1999RF0001

Secretary of State No.

829

Description

VEHICLE LICENSE FEES. TAXES. INITIATIVE CONSTITUTIONAL AMENDMENT. Reduces vehicle license fees by requiring fees be based on only the portion of vehicle's cost that exceeds $10,000. Requires further reduction and eventual elimination of fees if state general fund revenues are estimated to increase as specified. Establishes "Local Government Independence Fund." Beginning in 2000, requires amount equal to amount of vehicle license fees that would have been collected under law applicable January 1, 1999, be deposited in the Fund from the Retail Sales Tax Fund, for distribution to cities and counties. Defines "tax." Authorizes class actions and suits to invalidate illegal taxes. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Annual state expenditure increase of about $4 billion annually, potentially beginning in 2002-03, from eliminating the Vehicle License Fee and reimbursing local governments for their lost revenues. Reduction in state and local revenues, potentially in excess of $1 billion dollars annually, as a result of classifying more governmental revenues as taxes.

Proponents

Assemblyman Tom Mcclintock Senator Ray Haynes Tom Mcclintock'S Committee To Stop The Car Tax, 1127 11Th Street, Suite 216, Sacramento, Ca 95814 (916) 444-6238

Date

3-24-1999

Document Type

Initiative

Qualified

Failed to Qualify

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