HomeMy WebLinkAbout19259 - RESOLUTIONS - 5/20/1998 RESOLUTION NO. 19259
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, OPPOSING THE
REDUCTION, REPEAL OR OTHER ELIMINATION
OF THE CALIFORNIA VEHICLE LICENSE FEE, A
CONSTITUTIONALLY PROTECTED LOCAL
GOVERNMENT REVENUE SOURCE
WHEREAS the Vehicle License Fee (VLF) was created in 1935 to replace the personal
property tax on motor vehicles which had been levied and collected by local
governments; and
WHEREAS in 1986 California voters approved Proposlion 47 which reserved VLF
revenue for local government so the State could not siphon this local revenue to pay for
state programs; and
WHEREAS the State Legislature has taken billions of local property tax dollars since
the early 1990s to help fund the State budget ravaged by the recession; and
WHEREAS the City of Palm Springs alone has lost over $15,000,000 to the State of
California over the past seven (7) years as a result of such State legislative actions; and
WHEREAS the current legislative efforts to eliminate the VLF would, if successful,
-- result in an additional $1,700,000 annual loss to our city; and
WHEREAS the Stale Legislature is indicating that the VLF will be replaced by other
State revenue sources and, thus, there would be no loss of revenue to local
government; and
WHEREAS the State Legislature had made promises previously to return or suspend
local property tax shifts of the early 1990s as the State's economy improved; and
WHEREAS the State's coffers are overflowing this fiscal year ending June 30, 1998,
and instead of seriously designing ways to return or suspend these past years' revenue
shifts, as promised, legislators are proposing to take away more local government
revenue; and
WHEREAS by the State eliminating the VLF, which is deductible for income tax
purposes for those who itemize deductions, the State will earn about an additional $200
million in State Income Taxes; and
WHEREAS the State surplus is a result of Income Tax collections in excess of
estimates and the historic local government revenue sources, including property tax,
�' taken from local governments by the State to balance its budget. /1 t q �
Res. No. 19259
Page 2
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Pahn ,
Springs, as follows:
Section 1. That the Palm Springs City Council opposes any activity by the State
Legislature and/or the Governor to reduce or eliminate Vehicle License
Fees, which are a constitutionally protected local government revenue
source.
Section 2. That the Palm Springs City Council urges the State Legislature and the
Governor to return or reinstate to our counties, cities and special districts
the several historic local government revenue sources, including property
taxes, that were taken by the State to balance its budget during the early
1990s.
Section 3. That the Palm Springs City Council directs that copies of this Resolution
be subrnitted, with appropriate transmittal letters signed by the Mayor, to
Governor Pete Wilson, Senator Dave Kelley, Assemblyman Jim Battin
and other State Legislators, as may be deerned necessary.
ADOPTED this 20th day of May _, 1998.
AYES: Members Barnes, Hodges, Oden, Reller-Spurgin and Mayor Kleindienst,
NOES: None
ABSENT: None
ATTEST: CITY OF PALM SPRINGS CALIFORNIA
/l
is
By
City Clerk City Manager
REVIEWED & APPROVED AS TO FORM_, _