RES-8989 Supporting Governor's Vehicle License Fee Reduction ProposalRESOLUTION NO. 8989
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE SUPPORTING THE GOVERNOR'S
VEHICLE LICENSE FEE (VLF) REDUCTION
PROPOSAL.
WHEREAS, the California Vehicle License Fee (hereafter "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 pmpose use; and
WHEREAS, the Governor has a proposal to reduce the VLF rate from its current two
percfmt to one percent (1 %) beginning January 1, 1999, and to one-half of one percent (0.
5%)beginning January I, 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 begirming 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 amOlmts equal to the lost VLF revenues from the State General
Fund.NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange
that the City Council, with a guaranty of replacement revenues to the City of Orange, 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 on 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 I, 1999, and an additional reduction from one percent to one-
half of one percfmt of vehicle value being effective January 1,2002, resulting in an anticipated $3.
6 billion in annual savings
to California residents.ADOPTED this ~R"h day
of ,
TlIly 1998.ATTEST:l1,..1.uA'~
A'~ ('.#7 .A/'~City Clerk
I hereby certify that the foregoing Resolution was duly and regularly adopted by the City
Council of the City of Orange at a regular meeting thereof held on the 28th day of
ill.lly , I 998, by the following vote:AYES:
COUNCIL MEMBERS: MURPHY, SLATER, COONTZ, SPURGEON, ALVAREZ NOES:
COUNCIL MEMBERS: NONE ABSENT:
COUNCIL MEMBERS: NONE ABSTAIN:
COUNCIL MEMBERS: NONE CM~
AdZb-J ~7WA~
City Clerk of the 'y of Orange
Reso No. 8989 2-aJJ