HomeMy WebLinkAboutItem 4.09 RepealStatesVehicleLic i
CITY CLERK
File # _61;1 ° 4 (a
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: 4/7/98
SUBJECT: Opposition to SB 1723, SB 2001, and AB 1776,
all of which would repeal State's Vehicle
License Fees (Report prepared by: Sue Barnes,
Management Assistant)
EXHIBITS ATTACHED: Draft letters of opposition to State Legislators
RECOMMENDATION: Staff recommends that the City Council send
4 letters to State Legislators opposing SB 1723,
SB 2001, and AB 1776
FINANCIAL STATEMENT: A potential annual loss of over$1 million in City
revenue if the state vehicle license fees are
repealed with no backfills
DESCRIPTION:
Two bills pending in the Senate, SB 2001 and SB.1723, are designed to repeal the vehicle license fees that
currently are distributed to cities and counties. SB 2001 immediately repeals,the vehicle license fees with
no backfills to replace the local government loss. SB 1723 phases the revenue source out over a period of
time and backfills local governments with other state general fund money. Both of these bills are scheduled
to be heard by the Senate Revenue and Taxation Committee on April 15, 1998. A companion measure,
AB 1776, is resting in the Assembly. AB 1776, which uses the phase-out and backfill approach, has not
=yet been scheduled for a hearing.
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A repeal of the state vehicle license fees would have a significant impact City of Dublin's budget. In Fiscal ,
_ Year 1997/98, the City of Dublin is expected to receive $1,090,000 in vehicle license fees. This represents
approximately 6% of the budgeted General Fund Budget. If the Legislature was to repeal this tax, it is
unlikely that the City of Dublin would be able to replace the tax because of the constraints of Proposition
13 and the recent Proposition 218. While SB 1723 and AB 1776 have language to backfill cities and
counties from other state general fund sources, it is highly unlikely that the other competing interests for •
state general fund monies will permit the backfill to happen.
Staff recommends that the City Council send letters opposing all of these bills to the appropriate
legislators. Draft letters, along with lists of legislators to whom they will be sent, are attached for
Council's approval.
• COPIES TO: no(
ITEM NO.
H/cc-forms/agdas tmt.doc
April8, 1998
Re: SB 1723 and SB 2001
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«FirstName» «LastName»
JobTitle»
«Company»
Address l»
«City», «State» «PostalCode»
Dear«FirstName»:
I'm writing to register the City of Dublin's concern with SB 1723 and SB 2001, both of
which would repeal the State's Vehicle License Fee. SB 1723 and SB 2001 are scheduled
to be heard by the Senate Revenue and Taxation Committee on April 15. Our City
Council has voted unanimously to ask you and other members of the committee to reject
these measures.
Our concerns with these bills are as follows:
1. The loss of vehicle license fees would cause a significant reduction in the City of
Dublin's general fund. In fiscal year 1997/98, the City of Dublin is expected to _
receive $1,090,000 in vehicle license fees. This represents approximately 6% of
the budgeted General Fund Budget. This reduction would have a significant
impact on essential municipal services.
2. If the City of Dublin were to lose this important revenue source, it is unlikely that
we would be able to replace the tax because of the constraints of Proposition 13
and the recently enacted Proposition 218.
3. Even though SB 1723 phases out the reduction and proposes backfills from other
sources, we are very concerned that competing interests at the state level will not
permit the backfill to occur.
I urge you to oppose this legislation.
Sincerely,
Guy Houston
Mayor, City of Dublin
FirstName LastName JobTitle Company Addressl City State pa
Senator Dede Alpert Chair, Senate Revenue and Room 2187 State Capitol Sacramento CA S'
Taxation Committee
Senator Quentin Kopp Vice Chair, Senate Revenue._ Room 2057 State Capitol Sacramento CA 95814
and Taxation Committee
Senator John Burton Senate Revenue and Room 205 State Capitol Sacramento CA 95814
Taxation Committee
Senator Leroy Green Senate Revenue and Room 2082 State Capitol Sacramento CA 95814
Taxation Committee
Senator Rob Hurtt Senate Revenue and Room 5082 State Capitol Sacramento CA 95814
Taxation Committee
Senator Betty Kamette Senate Revenue and Room 3086 State Capitol Sacramento CA 95814
Taxation Committee
Senator William. Knight Senate Revenue and Room 2066 State Capitol Sacramento CA 95814
Taxation Committee
Senator Barbara Lee Senate Revenue and Room 5060 State Capitol Sacramento CA 95814
Taxation Committee
Senator Bruce McPherson Senate Revenue and Room 3076 State Capitol Sacramento CA 95814
Taxation Committee
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. /
April 8, 1998
Re: AB 1776
Assemblywoman Lynne Leach
Room 4015
State Capitol
Sacramento, CA 95814
Dear Assemblywoman Leach:
I'm writing to register the City of Dublin's concern with AB 1776, which would repeal the
State's Vehicle License Fee. The Dublin City Council voted unanimously to ask you to
reject this measure.
Our concerns with this legislation are as follows:
1. The loss of vehicle license fees would cause a significant reduction in the City of
Dublin's General Fund. In Fiscal Year 1997/98, the City of Dublin is expected to
receive $1,090,000 in vehicle license fees. This represents approximately 6% of
the budgeted General Fund Budget. This reduction would have a significant
_ impact on essential municipal services.
2. If the City of Dublin were to lose this important revenue source, it is unlikely that
it would be able to replace the tax because of the constraints of Proposition 13 and
the recently enacted Proposition 218.
3. Even though AB 1776 phases out the reduction and proposes backfills from other
sources, we are very concerned that competing interests at the state level will not
permit the backfill to occur.
I urge you to oppose this legislation.
Sincerely,
Guy Houston
Mayor, City of Dublin
(
April 8, 1998
Re: SB 1723 and SB 2001
Senator Richard Rainey
Room 4070
State Capitol
Sacramento, CA 95814
Dear Senator Rainey:
I'm writing to register the City of Dublin's concern with SB 1723 and SB 2001, both of
which would repeal the State's Vehicle License Fee. SB 1723 and SB 2001 are scheduled
to be heard by the Senate Revenue and Taxation Committee on April 15. Our City
Council has voted unanimously to ask for your support in opposing these measures.
Our concerns with these bills are as follows:
1.: The loss of vehicle license fees would cause a significant reduction in the City of
Dublin's general fund. In fiscal year 1997/98, the City of Dublin is expected to
receive$1,090,000 in vehicle license fees. This represents approximately 6% of
_.the budgeted General Fund Budget. This reduction.would have a significant_ _ _
impact on essential municipal services.
2. If the City of Dublin were to lose this important revenue source, it is unlikely that
we would be able to replace the tax because of the constraints of Proposition 13
and the recently enacted Proposition 218.
3. Even though SB 1723 phases out the reduction and proposes backfills from other
sources, we are very concerned that competing interests at the state level will not
permit the backfill to occur.
I urge you to oppose this legislation.
Sincerely,
Guy Houston
Mayor, City of Dublin
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