Government Finance and Operations 06/21/2013
Vehicle License Fees
SB 56 (Roth/Emmerson) – Support
As Amended on June 11, 2013
SB 56, by Senators Richard Roth and Bill Emmerson, would provide a “Vehicle License Fee Adjustment Amount” for newly incorporated cities, including those that were impacted by SB 89 (2011). CSAC supports this measure, as it would provide immediate financial assistance to the four newly incorporated cities in Riverside County.
Prior to the passage of SB 89 (2011), the four newly incorporated cities in Riverside County relied on current state law in evaluating their fiscal viability through the LAFCO process. In each case, LAFCO considered the Vehicle License Fee (VLF) revenue special allocation in their evaluation of the new cities’ revenue, which informed the eventual LAFCO vote to allow the local voters to consider incorporation. When SB 89 passed and redirected those VLF revenues to 2011 Realignment, these fledgling cities were impacted in a significant way.
SB 56 provides a mechanism by which the newly incorporated cities, as well as any new cities in the future, receive those funds, but instead of VLF, the revenues come the schools’ share of property taxes (as currently happens for all other cities and counties in the state). SB 56 restores funds to those impacted by SB 89 and ensures their continued viability.
The Senate Governance and Finance Committee passed SB 56 unanimously on Wednesday, June 19. The bill now moves to the Senate Appropriations Committee.