This part is applicable only to the City and County of San Francisco.
Part 5.7VOTER-APPROVED LOCAL ASSESSMENT
Section § 11160
This law section specifically applies only to the City and County of San Francisco. It does not affect any other areas.
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Section § 11161
This section defines several terms used for a specific part related to the City and County of San Francisco. It clarifies that 'board of supervisors' refers to the city's governing board, and 'Department' means the Department of Motor Vehicles. It also explains that 'market value' should be calculated as described in another section. A 'person' includes a wide range of entities, not just individuals. 'Resident of the city and county' is defined as someone whose address in DMV records is in San Francisco unless they can prove otherwise. Lastly, 'voter-approved local assessment' refers to an extra charge added on top of a regular fee.
For purposes of this part:
(a)CA Revenue and Taxation Code § 11161(a) “Board of supervisors” means the board of supervisors of the city and county.
(b)CA Revenue and Taxation Code § 11161(b) “City and county” means the City and County of San Francisco.
(c)CA Revenue and Taxation Code § 11161(c) “Department” means the Department of Motor Vehicles.
(d)CA Revenue and Taxation Code § 11161(d) “Market value” has the same meaning and shall be determined in the same manner as required under Part 5 (commencing with Section 10701) of Division 2.
(e)CA Revenue and Taxation Code § 11161(e) “Person” includes an individual, a firm, a corporation, a limited liability company, a partnership, or any other legal entity.
(f)CA Revenue and Taxation Code § 11161(f) “Resident of the city and county” means a person whose address, as reflected in department registration records, is in the city and county, but does not include a person that establishes to the satisfaction of the department that the person’s place of residence is elsewhere.
(g)CA Revenue and Taxation Code § 11161(g) “Voter-approved local assessment” means a supplemental charge added to the fee imposed pursuant to Part 5 (commencing with Section 10701).
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Section § 11162
This section allows the board of supervisors to implement a local tax for general revenue if certain conditions are met. First, the proposed tax must comply with specific legal requirements and be approved by two-thirds of the board. Then, it needs to be voted on and passed by a majority of local voters. After the vote, they have to send a certified copy of the ordinance to the relevant tax authorities. Additionally, the tax cannot treat different types of vehicles differently, except for current exemptions already in place.
Notwithstanding Section 10758, the board of supervisors may, by ordinance, impose a voter-approved local assessment for general revenue purposes pursuant to this part, if all of the following conditions are met:
(a)CA Revenue and Taxation Code § 11162(a) The ordinance proposing the assessment complies with both of the following:
(1)CA Revenue and Taxation Code § 11162(a)(1) Section 11163.
(2)CA Revenue and Taxation Code § 11162(a)(2) Article 3.7 (commencing with Section 53720) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code.
(b)CA Revenue and Taxation Code § 11162(b) The ordinance proposing the assessment is approved by two-thirds of all members of the board of supervisors.
(c)CA Revenue and Taxation Code § 11162(c) The ordinance proposing the assessment is submitted to the electorate of the city and county and is approved by a majority vote of the voters voting on the ordinance.
(d)CA Revenue and Taxation Code § 11162(d) The board of supervisors transmits to the department and the Franchise Tax Board a certified copy of the ordinance imposing that assessment immediately after the results of the election described in subdivision (c) are certified.
(e)CA Revenue and Taxation Code § 11162(e) The ordinance proposing the assessment does not create different classes of vehicles (whether by type, size,
passenger capacity, value or cost, fuel consumption, or any other characteristic) for differential taxation (whether by rate, method, assessment ratio, or any other means), except that the exemptions from the vehicle license fee set forth in Part 5 (commencing with Section 10701) shall be applicable.
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Section § 11163
This law outlines what must be included in a local ordinance when a city and county in California want to impose a voter-approved local vehicle assessment. The ordinance allows residents to operate their vehicles on public roads and states that the assessment amount is based on the difference between 2% of the vehicle's market value and the rate applied under existing state tax laws.
The local rate cannot exceed 2% of the vehicle's value, and any changes to the rate don't take effect until the next fiscal year. The timing of starting this local assessment depends on when voters approve it. The ordinance needs to mirror state provisions regarding vehicle license fees but replace the state with the local government as the taxing agency.
All future changes to state vehicle license laws that fit within this framework will automatically apply to the local rule. Finally, the city and county must agree with the state department to handle administration, collection, refunds, and payments related to this assessment.
An ordinance imposing a voter-approved local assessment pursuant to this part shall contain provisions in substance as follows:
(a)CA Revenue and Taxation Code § 11163(a) A provision that the assessment is imposed for the privilege of a resident of the city and county to operate upon the public highways in the city and county a vehicle or trailer coach, the registrant of which is subject to tax under Part 5 (commencing with Section 10701).
(b)Copy CA Revenue and Taxation Code § 11163(b)
(1)Copy CA Revenue and Taxation Code § 11163(b)(1) A provision establishing the annual amount of the assessment at a rate that equals the difference between the following two rates:
(A)CA Revenue and Taxation Code § 11163(b)(1)(A) Two percent of the market value of the vehicle or trailer coach.
(B)CA Revenue and Taxation Code § 11163(b)(1)(B) The rate, including any offset to that rate, set forth in Part 5 (commencing with Section 10701), for a vehicle or trailer coach.
(2)CA Revenue and Taxation Code § 11163(b)(2) A provision that the rate established under the provision described in paragraph (1) is subject to both of the following:
(A)CA Revenue and Taxation Code § 11163(b)(2)(A) That the rate may not exceed 2 percent of the market value of the vehicle or trailer coach.
(B)CA Revenue and Taxation Code § 11163(b)(2)(B) That any adjustment that is required to be
made to the rate because of a change in the rate, or any offset to that rate, set forth in Part 5 (commencing with Section 10701), shall not take effect until the first day of the first fiscal year that follows the fiscal year in which the change to the rate or offset set forth in that part became operative.
(c)CA Revenue and Taxation Code § 11163(c) A provision that the assessment will begin to be imposed as follows:
(1)CA Revenue and Taxation Code § 11163(c)(1) If the election in which the ordinance receives voter approval occurs between January 1 and June 30, on the first January 1 that follows that election.
(2)CA Revenue and Taxation Code § 11163(c)(2) If the election in which the ordinance receives voter approval occurs between July 1 and December 31, on the first July 1 that follows that election.
(d)CA Revenue and Taxation Code § 11163(d) Provisions identical to those contained in Part 5 (commencing with
Section 10701), insofar as they relate to vehicle license fees and are applicable, and insofar as they are consistent with this part, except that the name of the city and county as the taxing agency shall be substituted for that of the state.
(e)CA Revenue and Taxation Code § 11163(e) A provision that all amendments, subsequent to the effective date of the voter-approved local assessment ordinance, to Part 5 (commencing with Section 10701) relating to vehicle license fees and not inconsistent with this part, shall automatically be incorporated into the voter-approved local assessment ordinance.
(f)CA Revenue and Taxation Code § 11163(f) A provision that requires the city and county to contract with the department, which contract shall contain provisions in substance as follows:
(1)CA Revenue and Taxation Code § 11163(f)(1) A requirement that the department perform all functions incident to the administration and collection of the
voter-approved local assessment.
(2)CA Revenue and Taxation Code § 11163(f)(2) A provision specifying the manner in which refunds pursuant to Part 5 (commencing with Section 10701), as incorporated in the voter-approved local assessment ordinance pursuant to subdivisions (c) and (d), will be made and administered.
(3)CA Revenue and Taxation Code § 11163(f)(3) A provision that requires the city and county to pay the department for the initial setup and programming costs identified by the department.
(4)CA Revenue and Taxation Code § 11163(f)(4) A provision specifying the manner in which reimbursements to the state shall be made in compliance with subdivision (b) of Section 11167 after the inoperation or repeal of a voter-approved local assessment.
local vehicle assessment voter-approved ordinance vehicle market value public highways operation annual assessment rate rate adjustment fiscal year timing vehicle license fees ordinance provisions city and county tax agency state department contract administration and collection refunds process programming costs reimbursements to state
Section § 11163.2
This law section says that any local rule, or ordinance, approved before a certain date is still legal and enforceable under two conditions. First, any tax or charge authorized by the ordinance must not be collected until at least 90 days after the new related law came into effect. Second, after the new law is in place but before any new tax is collected, the local government leaders, called the board of supervisors, must officially confirm or ratify their earlier decision to adopt the ordinance.
Any ordinance approved pursuant to Section 11163 shall be valid and enforceable even if approved, as required by Section 11162, by the board of supervisors and by the voters prior to the effective date of the act adding this section, but only if both of the following apply:
(a)CA Revenue and Taxation Code § 11163.2(a) Any assessment imposed pursuant to the approval of the ordinance is not levied until at least 90 days after the effective date of the act adding
this section.
(b)CA Revenue and Taxation Code § 11163.2(b) The board of supervisors ratifies its adoption of the ordinance after the effective date of the act adding this section and prior to the first levy of the assessment imposed pursuant to the approval of the ordinance.
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Section § 11164
This law requires a department to collect a special local tax voted on by residents of San Francisco and put it into a specific fund. They must calculate the cost of managing this tax and determine the adjusted amount based on earlier reports. After subtracting costs, the department quickly sends the remaining money to the city and county. They have to work with the Franchise Tax Board to share data that helps estimate any revenue loss.
The department shall do all of the following:
(a)CA Revenue and Taxation Code § 11164(a) Collect the voter-approved local assessment, pursuant to a contract with the city and county, and deposit it into the San Francisco Vehicle Assessment Fund, which is hereby created in the State Treasury.
(b)CA Revenue and Taxation Code § 11164(b) Calculate its costs in administering the voter-approved local assessment pursuant to this part.
(c)CA Revenue and Taxation Code § 11164(c) From the assessments collected under subdivision (a), calculate the amount reported under subdivision (a) of Section 11166 as appropriately adjusted, if applicable, by the most recent amount reported under subdivision (b) of Section 11166.
(d)CA Revenue and Taxation Code § 11164(d) Transmit revenues derived from the assessments collected under subdivision (a), minus the amount currently outstanding that has been calculated under subdivisions (b) and (c), to the city and county as promptly as feasible. The moneys necessary to accomplish the transfer shall be continuously appropriated for that purpose.
(e)CA Revenue and Taxation Code § 11164(e) The department and the Franchise Tax Board shall develop a reporting process that enables the department to report to the Franchise Tax Board in a timely manner the data necessary for the Franchise Tax Board to prepare the estimate of revenue loss
specified in Section 11166.
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Section § 11165
This law clarifies two things: First, any funds the state gives to cities and counties, including money from vehicle license fees, cannot be replaced by funds from this part. Second, if a city or county loses money from a locally-approved tax because state vehicle fee rates go up, the state won't reimburse them for that lost money.
(a)CA Revenue and Taxation Code § 11165(a) This part shall not be construed to supplant any moneys that the state apportions to the city and county, including, but not limited to, moneys apportioned to the city and county under the Vehicle License Fee Law set forth in Part 5 (commencing with Section 10701), or any successor to that law.
(b)CA Revenue and Taxation Code § 11165(b) Notwithstanding any other law, if the city and county that imposes a voter-approved local assessment
has a reduction in revenue derived from that assessment because of an increase in the rate, including any offset to that rate, set forth in Part 5 (commencing with Section 10701) for a vehicle or a trailer coach, reimbursement by the state shall not be made to the city and county for that loss in revenue.
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Section § 11166
This law requires the California Franchise Tax Board to report estimated and revised revenue losses to the state due to certain tax deductions. By January 1 each year, the Board must estimate how much revenue the state will lose in the coming year from deductions taken under personal and corporate tax laws due to specific taxes. By January 1 of the second year after these deductions, they must revise their estimates based on actual tax returns filed.
(a)CA Revenue and Taxation Code § 11166(a) On or before January 1 of the year that follows a year, or portion thereof, in which an assessment is imposed pursuant to this part, and annually thereafter, the Franchise Tax Board shall report to the department an estimate of the total amount of the revenue loss to the state that is expected to occur in the next calendar year, for a report given before January 1, or the current calendar year, for a report given on January 1, from deductions taken under the
Personal Income Tax Law (Part 10 (commencing with Section 17001)) and the Corporation Tax Law (Part 11 (commencing with Section 23001)) for taxes paid or incurred as a result of an enacted tax being imposed pursuant to this part.
(b)CA Revenue and Taxation Code § 11166(b) On or before January 1 of the second year that follows a year, or portion thereof, in which an assessment is imposed pursuant to this part, and annually thereafter, the Franchise Tax Board shall report to the department a revision of the applicable previous estimate made pursuant to subdivision (a), based on actual filings and returns.
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Section § 11167
This law explains what happens when the Franchise Tax Board changes its tax estimates for San Francisco after a local voter-approved tax measure is no longer in effect. When the original estimate is higher than the revised one, San Francisco gets reimbursed from a special fund. If the original estimate is lower, then San Francisco has to pay back the state. Plus, any changes to these estimates must go to the Controller, not the department.
For any revisions to previous estimates made by the Franchise Tax Board on or after January 1 following the inoperation or repeal of a voter-approved local assessment pursuant to Section 11166, the following shall apply:
(a)Copy CA Revenue and Taxation Code § 11167(a)
(1)Copy CA Revenue and Taxation Code § 11167(a)(1) In the event that the Franchise Tax Board’s reported estimate, pursuant to subdivision (a) of Section 11166, exceeds the revision of that estimate, pursuant to subdivision (b)
of Section 11166, the city and county shall be reimbursed by the Controller from the San Francisco Vehicle Assessment Fund.
(2)CA Revenue and Taxation Code § 11167(a)(2) The money in the San Francisco Vehicle Assessment Fund is hereby continuously appropriated, without regard to fiscal years, for the purposes enumerated in this subdivision.
(b)CA Revenue and Taxation Code § 11167(b) In the event that the Franchise Tax Board’s reported estimate, pursuant to subdivision (a) of Section 11166, is less than the revision of that estimate, pursuant to subdivision (b) of Section 11166, the state shall be reimbursed by the city and county. The reimbursement pursuant to this subdivision shall be performed as provided in paragraph (4) of subdivision (f) of Section 11163.
(c)CA Revenue and Taxation Code § 11167(c) Notwithstanding Section 11166, any revision of an applicable previous estimate shall not be reported to the department and shall be
reported to the Controller.
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