98-154RESOLUTION NO. 98R-154
A RESOLUTION OF THE CITY COI/NCIL OF THE CITY
OF ANAHEIM SUPPORTING THE GOVERNOR'S VEHICLE
LICENSE FEE (VLF) REDUCTION PROPOSAL
WHEREAS, the California Vehicle License Fee (~'VLF") is an
annual fee imposed upon all motor vehicles registered in the State
of California and is currently assessed at two percent of the
vehicle's market value as annually adjusted by a fixed depreciation
schedule; and
WHEREAS, the average VLF in the State is approximately
$185 per registered vehicle, totaling an estimated $3.9 billion a
year; and
WHEREAS, the revenues from the VLF are constitutionally
defined local revenues and are apportioned according to statute
with approximately three-fourths of the VLF revenues distributed to
cities and counties for general purpose use; and
WHEREAS, the Governor has a proposal to reduce the VLF
rate from its current two percent to one percent (1%) beginning
January 1, 1999, and to one-half of one percent (0.5%) beginning
January 1, 2002, with no change to the current distribution
formula, and which proposal will result in saving California
taxpayers $2 billion in 1999 and increasing to $3.6 billion
annually beginning in 2002; and
WHEREAS, to protect local government from being
negatively affected by the proposed VLF reduction, the Governor's
proposal will statutorily annually appropriate to cities and
counties amounts equal to the lost VLF revenues from the State
General Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Anaheim that the City Council, with a guaranty of
replacement revenues to the City of Anaheim, does hereby express
its support for Governor Wilson's proposal to reduce the California
Vehicle License Fee from the current two percent of vehicle value
to one-half of one percent (a 75 percent reduction) over the next
five years with the first reduction from two percent to one percent
of vehicle value being effective January 1, 1999, and an additional
reduction from one percent to one-half of one percent of vehicle
value being effective January 1, 2002, resulting in an anticipated
$3.6 billion in annual savings to California residents.
THE FOREGOING RESOLUTION is approved and adopted by the
City Council of the City of Anaheim this 14th day of July, 1998.
CITY CLERK OF ITY OF ANAHEIM
MAY/OF~RO~FT HEIM
CIT~HH
0026810 . 02