Part 4LOCAL MOTOR VEHICLE FUEL TAXATION

Section § 9501

Explanation

This law allows counties in California to impose an additional tax on motor vehicle fuel. The tax can be added on top of existing fuel taxes and must be applied countywide. It's calculated in increments of one cent per gallon for regular fuel or one cent per 100 cubic feet for compressed natural gas. However, this tax cannot be applied to fuel used by aircraft or boats.

(a)CA Revenue and Taxation Code § 9501(a) Except as specified in subdivision (c), in addition to taxes imposed pursuant to Chapter 5 (commencing with Section 99500) of Part 11 of Division 10 of the Public Utilities Code, Part 2 (commencing with Section 7301), Part 3 (commencing with Section 8601), and Part 31 (commencing with Section 60001) of this division, on motor vehicle fuel, a tax may be imposed by a county on a countywide basis in accordance with this part.
(b)CA Revenue and Taxation Code § 9501(b) The tax shall be imposed in increments of one cent ($0.01) per gallon or, in the case of compressed natural gas, one cent ($0.01) per 100 cubic feet as measured at standard pressure and temperature.
(c)CA Revenue and Taxation Code § 9501(c) No tax shall be imposed under this part on fuel used in propelling an aircraft or a vessel.
county fuel tax motor vehicle fuel incremental tax compressed natural gas tax countywide tax exemption for aircraft exemption for vessels fuel tax rate additional fuel tax California counties fuel regulation gallon taxation standard pressure measurement public utilities code compressed gas fuel county taxation regulation
(Amended by Stats. 1995, Ch. 555, Sec. 39. Effective January 1, 1996.)

Section § 9502

Explanation

This section outlines the process a California county must follow to impose a new tax. First, the proposal must be approved by voters in an election and include details about the maximum tax rate and its duration. Before this can happen, the county's board of supervisors and a majority of city councils in cities with most of the population must agree to the tax, ensuring an agreement is in place on how tax revenue will be shared between the county and the cities. Importantly, the city councils' and board of supervisors' approvals must be obtained within one year of each other, depending on who approves first.

(a)CA Revenue and Taxation Code § 9502(a) Prior to imposition and collection of any tax under this part, a proposition granting authority to the county to impose the tax shall be submitted to and approved by the voters at an election. The proposition shall specify the maximum tax to be imposed and may specify the period for which the tax will be imposed.
(b)CA Revenue and Taxation Code § 9502(b) A proposition may be submitted to the voters under subdivision (a) only if (1) it is approved by the board of supervisors and a majority of the city councils of the cities having a majority of the population in the incorporated areas of the county, as provided in subdivision (c), and (2) the county and the majority of the cities having a majority of the population in the incorporated areas of the county have a written agreement with respect to allocation of the revenues between the county and the cities.
(c)CA Revenue and Taxation Code § 9502(c) If the board of supervisors approves the proposition prior to the approval of a majority of the city councils of the cities having a majority of the population in the incorporated area of the county, the approval of the other city councils to secure both of those majorities shall be secured within one year of the approval of the board of supervisors. If the board of supervisors approves the proposition after the approval of the city councils with both of those majorities, the approval of the board of supervisors shall be made within one year of the date of the approval of the city council which results in the proposition being approved by the city councils with both of those majorities.
county tax proposal voter approval election requirement maximum tax rate tax duration board of supervisors city council approval revenue allocation agreement incorporated areas population majority one-year approval timeline new tax imposition revenue sharing California counties county-city agreement
(Amended by Stats. 1982, Ch. 1085, Sec. 2. Effective September 16, 1982.)

Section § 9502.5

Explanation

This law states that if a tax is imposed throughout Los Angeles County, the amount of money from that tax spent in the San Fernando Valley must be at least proportional to its population compared to the entire county. Essentially, the San Fernando Valley should receive tax proceeds that match its share of the county's population.

If the countywide tax is imposed within the County of Los Angeles, the portion of the proceeds of the tax allocated and spent within the boundaries of the San Fernando Valley Statistical Area, as defined in Section 11093 of the Government Code, shall be not less, on a percentage basis, than the percent that the population of the San Fernando Valley Statistical Area is of the total population of Los Angeles County.
countywide tax Los Angeles County San Fernando Valley tax proceeds allocation population-based funding proportional tax distribution government code section 11093 tax spending requirements local tax allocation Los Angeles population San Fernando Valley Statistical Area regional tax allocation Los Angeles County population population percentage tax revenue distribution
(Added by Stats. 1981, Ch. 790, Sec. 3.)

Section § 9503

Explanation

This section of the law states that a county is required to make an agreement with the State Board of Equalization to handle the administration of any tax they decide to impose under this part. The county must pay the state board back for any costs related to managing and preparing to manage this tax.

(a)CA Revenue and Taxation Code § 9503(a) The county shall contract with the State Board of Equalization for the administration of any tax imposed under this part, and the state board shall be reimbursed for its cost in the administration of the tax.
(b)CA Revenue and Taxation Code § 9503(b) The county shall also reimburse the state board for its cost of preparation to administer the tax.
county tax administration State Board of Equalization reimbursement of costs tax preparation costs county contract with state state tax management local tax handling tax administration expenses government tax contracts county reimbursements state tax preparation
(Added by Stats. 1981, Ch. 541, Sec. 14. Effective September 17, 1981.)

Section § 9504

Explanation

The State Board of Equalization is responsible for creating rules and regulations needed to manage the tax.

The State Board of Equalization shall adopt the necessary rules and regulations to administer the tax.
State Board of Equalization rules and regulations tax administration tax management regulatory authority tax policy tax rules regulatory compliance equalization board responsibilities tax system governance
(Added by Stats. 1981, Ch. 541, Sec. 14. Effective September 17, 1981.)

Section § 9505

Explanation

This law requires that after covering administrative costs, the State Board of Equalization sends the remaining tax revenues to counties in a timely manner. The counties must then pass these funds to cities based on their agreement with those cities. Transfers must happen at least twice every three months.

After deducting its cost in administering the tax, the State Board of Equalization shall transmit the net revenues to the county periodically as promptly as possible for distribution in accordance with the allocation agreement between the county and cities. The transmittals from the Board of Equalization to counties and the transmittal from counties to cities shall be made at least twice in each calendar quarter.
State Board of Equalization net revenues county distribution cities allocation agreement administering tax revenue transmittals fiscal coordination tax administration costs periodic allocation county-city fund distribution revenue sharing quarterly transmittals intergovernmental finance local government funding tax revenue distribution
(Amended by Stats. 1982, Ch. 1589, Sec. 24.)

Section § 9506

Explanation

This law states that when a county creates a tax ordinance, the rules outlined in specific parts of the state's tax laws (Parts 2, 3, and 31) must be included. The only difference is that the county's name will replace the state's name as the taxing authority.

The ordinance shall include provisions identical to those contained in Part 2 (commencing with Section 7301), Part 3 (commencing with Section 8601), and Part 31 (commencing with Section 60001), except that the name of the county as the taxing agency shall be substituted for that of the state.
tax ordinance county taxing agency tax law inclusion replace state name Part 2 provisions Part 3 provisions Part 31 provisions local taxes tax law substitution county tax regulations
(Amended by Stats. 1995, Ch. 555, Sec. 40. Effective January 1, 1996.)

Section § 9507

Explanation

This law states that the money counties and cities make from certain taxes must only be used for the purposes allowed by Article XIX of the California Constitution.

The net revenues received by counties and cities from taxes imposed under this part shall be expended only for the purposes authorized by Article XIX of the California Constitution.
net revenues county taxes city taxes Article XIX California Constitution tax revenue spending authorized purposes local government finance tax fund allocation public spending regulation
(Added by Stats. 1981, Ch. 541, Sec. 14. Effective September 17, 1981.)