Bill Text: CA AB2175 | 2015-2016 | Regular Session | Amended
Bill Title: Fuel taxes: Off-Highway Vehicle Trust Fund.
Spectrum: Partisan Bill (Republican 8-0)
Status: (Failed) 2016-11-30 - From Senate committee without further action. [AB2175 Detail]
Download: California-2015-AB2175-Amended.html
BILL NUMBER: AB 2175 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 20, 2016
AMENDED IN ASSEMBLY MAY 27, 2016
AMENDED IN ASSEMBLY MARCH 18, 2016
INTRODUCED BY Assembly Member Jones
( Coauthors: Assembly Members
Gallagher, Mathis, Olsen, and
Wagner )
( Coauthors: Senators
Anderson, Bates, and Berryhill )
FEBRUARY 18, 2016
An act to amend Section 8352.6 of the Revenue and Taxation Code,
relating to fuel taxes.
LEGISLATIVE COUNSEL'S DIGEST
AB 2175, as amended, Jones. Fuel taxes: Off-Highway Vehicle Trust
Fund.
Existing law imposes an excise tax on motor vehicle fuel
(gasoline). Existing law, as a result of the elimination of the sales
tax on gasoline effective July 1, 2010, provides for a commensurate
increase in the excise tax on gasoline. These taxes are deposited to
the Motor Vehicle Fuel Account in the Transportation Tax Fund.
Existing law requires certain moneys attributable to taxes imposed
upon distribution of gasoline related to specified off-highway motor
vehicles and off-highway vehicle activities to be transferred monthly
from the Motor Vehicle Fuel Account to the Off-Highway Vehicle Trust
Fund. Existing law, however, transfers, with respect to the increase
in gasoline excise taxes as a result of the elimination of the sales
tax on gasoline, to the General Fund the revenues attributable to
off-highway vehicles that would otherwise be deposited in the
Off-Highway Vehicle Trust Fund. Existing law also requires the
Controller to withhold $833,000 from the monthly transfer, and
transfer that amount to the General Fund. The moneys in the
Off-Highway Vehicle Trust Fund are required to be used, upon
appropriation, for specified purposes related to off-highway motor
vehicle recreation.
This bill would, on June 30, 2017, eliminate the requirement that
the Controller withhold $833,000 from the monthly transfer and
transfer it to the General Fund and would thereby transfer this
amount monthly to the Off-Highway Vehicle Trust Fund.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8352.6 of the Revenue and Taxation Code is
amended to read:
8352.6. (a) (1) Subject to Section 8352.1, and except as
otherwise provided in paragraphs (2) and (3), on the first day of
every month, there shall be transferred from moneys deposited to the
credit of the Motor Vehicle Fuel Account to the Off-Highway Vehicle
Trust Fund created by Section 38225 of the Vehicle Code an amount
attributable to taxes imposed upon distributions of motor vehicle
fuel used in the operation of motor vehicles off highway and for
which a refund has not been claimed. Transfers made pursuant to this
section shall be made prior to before
transfers pursuant to Section 8352.2.
(2) Commencing July 1, 2012, the revenues attributable to the
taxes imposed pursuant to subdivision (b) of Section 7360 and Section
7361.1 and otherwise to be deposited in the Off-Highway Vehicle
Trust Fund pursuant to paragraph (1) shall instead be transferred to
the General Fund. The revenues attributable to the taxes imposed
pursuant to subdivision (b) of Section 7360 and Section 7361.1 that
were deposited in the Off-Highway Vehicle Trust Fund in the 2010-11
and 2011-12 fiscal years shall be transferred to the General Fund.
(3) Until June 30, 2017, the Controller shall withhold eight
hundred thirty-three thousand dollars ($833,000) from the monthly
transfer to the Off-Highway Vehicle Trust Fund pursuant to paragraph
(1), and transfer that amount to the General Fund.
(b) The amount transferred to the Off-Highway Vehicle Trust Fund
pursuant to paragraph (1) of subdivision (a), as a percentage of the
Motor Vehicle Fuel Account, shall be equal to the percentage
transferred in the 2006-07 fiscal year. Every five years, starting in
the 2013-14 fiscal year, the percentage transferred may be adjusted
by the Department of Transportation in cooperation with the
Department of Parks and Recreation and the Department of Motor
Vehicles. Adjustments shall be based on, but not limited to, the
changes in the following factors since the 2006-07 fiscal year or the
last adjustment, whichever is more recent:
(1) The number of vehicles registered as off-highway motor
vehicles as required by Division 16.5 (commencing with Section 38000)
of the Vehicle Code.
(2) The number of registered street-legal vehicles that are
anticipated to be used off highway, including four-wheel drive
vehicles, all-wheel drive vehicles, and dual-sport motorcycles.
(3) Attendance at the state vehicular recreation areas.
(4) Off-highway recreation use on federal lands as indicated by
the United States Forest Service's National Visitor Use Monitoring
and the United States Bureau of Land Management's Recreation
Management Information System.
(c) It is the intent of the Legislature that transfers from the
Motor Vehicle Fuel Account to the Off-Highway Vehicle Trust Fund
should reflect the full range of motorized vehicle use off highway
for both motorized recreation and motorized off-road access to other
recreation opportunities. Therefore, the Legislature finds that the
fuel tax baseline established in subdivision (b), attributable to
off-highway estimates of use as of the 2006-07 fiscal year, accounts
for the three categories of vehicles that have been found over the
years to be users of fuel for off-highway motorized recreation or
motorized access to nonmotorized recreational pursuits. These three
categories are registered off-highway motorized vehicles, registered
street-legal motorized vehicles used off highway, and unregistered
off-highway motorized vehicles.
(d) It is the intent of the Legislature that the off-highway motor
vehicle recreational use to be determined by the Department of
Transportation pursuant to paragraph (2) of subdivision (b) be that
usage by vehicles subject to registration under Division 3
(commencing with Section 4000) of the Vehicle Code, for recreation or
the pursuit of recreation on surfaces where the use of vehicles
registered under Division 16.5 (commencing with Section 38000) of the
Vehicle Code may occur.
(e) In the 2014-15 fiscal year, the Department of Transportation,
in consultation with the Department of Parks and Recreation and the
Department of Motor Vehicles, shall undertake a study to determine
the appropriate adjustment to the amount transferred pursuant to
subdivision (b) and to update the estimate of the amount attributable
to taxes imposed upon distributions of motor vehicle fuel used in
the operation of motor vehicles off highway and for which a refund
has not been claimed. The department shall provide a copy of this
study to the Legislature no later than January 1, 2016.
