Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2012
 

Revenue and Taxation Code

Other Taxes

Part 5. Vehicle License Fee

CHAPTER 2. Imposition of Fee


Chapter 2. Imposition of Fee

Article 1. Computation of Fee

10751. Imposition of fee. A license fee is hereby imposed for the privilege of operating upon the public highways in this state any vehicle of a type which is subject to registration under the Vehicle Code, or any trailer coach which is required to be moved under permit as authorized in Section 35790 of the Vehicle Code and which is not subject to local property taxation pursuant to Part 13 (commencing with Section 5800) of Division 1. Vehicles of banks, including national banking associations, shall be subject to all provisions of the Vehicle Code to the same extent and same manner as other vehicles, and shall be subject to this part.

History.—Stats. 1943, p. 2170, in effect August 4, 1943, added "which is" in the first sentence. Stats. 1970, p. 2968, effective November 23, 1970, added "(a) Except as provided in subdivision (b)," and subdivision (b). Stats. 1973, Ch. 889, p. 1645, in effect September 28, 1973, operative March 19, 1975, deleted the subdivision letters, "Except as provided in subdivision (b)," in the first sentence, and former subdivision (b). Stats. 1974, Ch. 1330, p. 2886, in effect September 26, 1974, postponed the operative date of Stats. 1973, Ch. 889, p. 1645, to March 8, 1976. Stats. 1975, Ch. 575, p. 1153, in effect September 6, 1975, operative March 8, 1976, added the second sentence. Stats. 1980, Ch. 1149, in effect January 1, 1981, added the balance of the first sentence after the first "Vehicle Code".

Application to servicemen.—The California vehicle license fee constitutes a personal property tax from which nonresident servicemen stationed in California are exempt under the Soldiers' and Sailors' Civil Relief Act of 1940. California v. Buzard, 382 U.S. 386, affirming People v. Buzard, 61 Cal.2d 833.

Vehicles operated solely on federal roads.—Respondent's vehicles, operated solely on the federal roads within Yosemite National Park, are not subject to the Vehicle License Fee Law or the registration and fee requirements of the Vehicle Code. Yosemite Park & Curry Co. v. Dept. of Motor Vehicles, 177 Cal.App.2d 448.

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10752. Measure of fee. (a) The annual amount of the license fee for any vehicle, other than a trailer or semitrailer, as described in subdivision (a) of Section 5014.1 of the Vehicle Code or a commercial motor vehicle described in Section 9400.1 of the Vehicle Code, or a trailer coach that is required to be moved under permit as authorized in Section 35790 of the Vehicle Code, shall be a sum equal to the following percentage of the market value of the vehicle as determined by the department:

(1) Sixty-five hundredths of 1 percent on and after January 1, 2005, and before May 19, 2009.

(2) One percent for initial and renewal registrations due on and after May 19, 2009, but before July 1, 2011.

(3) Sixty-five hundredths of 1 percent for initial and renewal registrations due on and after July 1, 2011.

(b) The annual amount of the license fee for any commercial vehicle as described in Section 9400.1 of the Vehicle Code, shall be a sum equal to 0.65 percent of the market value of the vehicle as determined by the department.

(c) Notwithstanding Chapter 5 (commencing with Section 11001) or any other law to the contrary, all revenues (including penalties), less refunds, attributable to that portion of the rate imposed pursuant to this section in excess of 0.65 percent shall be deposited into the General Fund.deletion

History.—Stats. 1948, p. 129, operative January 1, 1949, substituted "two (2)" for "13/4", and deleted "actual" before "market value". Stats. 1971, p. 2840, effective March 4, 1972, added "(a) Except as provided in subdivision (b)" at the beginning of the first sentence and added subdivision (b). Stats. 1972, p. 1433, in effect August 11, 1972, deleted "(a) Except as provided in subdivision (b)" at the beginning of the first sentence and former subdivision (b). Stats. 1974, Ch. 1051, p. 2267, in effect January 1, 1975, added "for any vehicle other than a trailer coach which is required to be moved under permit as authorized in Section 35790 of the Vehicle Code" after "license fee", and substituted "2" for "two (2)". Stats. 2000, Ch. 861 (SB 2084), in effect September 29, 2000, added a comma after "any vehicle", added "or semitrailer or a trailer" after the first "a trailer", substituted "that" for "which" after "coach", and added a comma after "Code" in the first sentence. Stats. 2000, Ch. 861 (SB 2084), in effect September 29, 2000, added a comma after "any vehicle", added "or semitrailer or a trailer" after the first "a trailer", substituted "that" for "which" after "coach", and added a comma after "Code" in the first sentence. Stats. 2001, Ch. 826 (AB 1472), in effect January 1, 2002, added ", as described in subdivision (a) of Section 5014.1 of the Vehicle Code," after "semitrailer" in the first sentence of the first paragraph. Amended by Stats. 2004, Ch. 211 (SB 1096), in effect August 5, 2004. Amended by Stats. 2009, Ch. 18 of the Third Extraordinary Session in effect January 1, 2010. Amended by Stats. 2011, Ch. 35 (SB 89), in effect June 30, 2011.

Note.—Section 1 of Stats. 2001, Ch. 826 (AB 1472) provided that:

(a) The Legislature finds and declares that it is necessary to convert California's system of commercial vehicle registration from an unladen weight system to a gross vehicle weight system and to initiate a permanent trailer identification program. Furthermore, it is the intent of the Legislature that this conversion be revenue neutral to all cities and counties and all unladen weight fee system recipients.

(b) For the purposes of this act, "revenue neutrality" requires that all recipients of the fees collected under the system in effect on December 31, 2001, shall receive the same level of funding, with the same degree of flexibility, after the conversion to the system created by this act.

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deletion10752.1. Measure of fee; trailer coach. (a) The annual amount of the license fee for a trailer coach which is required to be moved under permit as authorized in Section 35790 of the Vehicle Code shall be a sum equal to the following percentage of the market value of the vehicle as determined by the department:

(1) Sixty-five hundredths of 1 percent on and after January 1, 2005, and before May 19, 2009.

(2) One percent for initial and renewal registrations due on and after May 19, 2009, but before July 1, 2011.

(3) Sixty-five hundredths of 1 percent for initial and renewal registrations due on and after July 1, 2011.

(b) Notwithstanding Chapter 5 (commencing with Section 11001) or any other law to the contrary, all revenues (including penalties), less refunds, attributable to that portion of the rate imposed pursuant to this section in excess of 0.65 percent shall be deposited in the General Fund.deletion

History.—Added by Stats. 1974, Ch. 1051, p. 2268, in effect January 1, 1975. Amended by Stats. 2004, Ch. 211 (SB 1096), in effect August 5, 2004. Amended by Stats. 2009, Ch. 18 of the Third Extraordinary Session in effect January 1, 2010. Amended by Stats. 2011, Ch. 35 (SB 89), in effect June 30, 2011.

deletion10752.1. Measure of fee; trailer coach. [Repealed by Stats. 2011, Ch.35 (SB 89) Effective June 30, 2011.]deletion

10752.2. Additional fee; Local Safety and Protection Account. (a) For initial or renewal registrations due on and after May 19, 2009, but before July 1, 2011, in addition to the annual license fee for a vehicle, other than a commercial motor vehicle described in Section 9400.1 of the Vehicle Code, imposed pursuant to Sections 10752 and 10752.1, a sum equal to 0.15 percent of the market value of the vehicle as determined by the department, shall be added to that annual fee.

(b) Notwithstanding Chapter 5 (commencing with Section 11001) or any other law to the contrary, all revenues (including penalties), less refunds, derived from fees collected pursuant to subdivision (a) shall be deposited in the General Fund and transferred to the Local Safety and Protection Account, which is hereby established in the Transportation Tax Fund. Notwithstanding Section 13340 of the Government Code, all moneys in the account are hereby continuously appropriated, without regard to fiscal year, to the Controller for allocation pursuant to Sections 29553, 30061, and 30070 of the Government Code, Section 13821 of the Penal Code, and Sections 18220 and 18220.1 of the Welfare and Institutions Code. All revenue derived from subdivision (a) that is received after June 30, 2011, shall be deemed to have been received during the 2010–11 fiscal year for purposes of allocation by the Controller.

(c) (1) In 2010 and each calendar year thereafter, the Director of Finance shall, no later than January 10 and upon the enactment of the Budget Act during the calendar year, make a written determination of whether any of the moneys derived from fees collected pursuant to subdivision (a) are being allocated by the state for any purpose not authorized by subdivision (b), and shall immediately submit his or her written determination to all of the following:

(A) The Director of the Department of Motor Vehicles.

(B) The Joint Legislative Budget Committee.

(C) The Senate and Assembly Appropriations Committees.

(D) The Senate and Assembly Revenue and Taxation Committees.

(2) If the Director of Finance determines that any moneys derived from fees collected pursuant to subdivision (a) are being allocated by the state for a purpose not authorized by subdivision (b), the Director of the Department of Motor Vehicles shall, upon receipt of the written determination, immediately cease collection of the fees imposed by subdivision (a), and shall resume collection of those fees only upon his or her receipt of written determination provided under paragraph (1) that specifies that none of the moneys derived from fees collected pursuant to subdivision (a) are being allocated by the state for a purpose not authorized by subdivision (a).

History.—Amended by Stats. 2011, Ch. 35 (SB 89), in effect June 30, 2011.

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10753. Basis of valuation. [Repealed by Stats. 2000, Ch. 596 (AB 2909) in effect January 1, 2001.]

10753. Basis of valuation. (a) Upon the first sale of a new vehicle to a consumer and upon each sale of a used vehicle to a consumer, the department shall determine the market value of the vehicle on the basis of the cost price to the purchaser as evidenced by a certificate of cost, but not including California sales or use tax or any local sales, transactions, use, or other local tax. "Cost price" includes the value of any modifications made by the seller.

(b) Notwithstanding subdivision (a), the department shall not redetermine the market value of used vehicles, or modify the vehicle license fee classification of used vehicles determined pursuant to Section 10753.2, when the seller is the parent, grandparent, child, grandchild, or spouse of the purchaser, and the seller is not engaged in the business of selling vehicles subject to registration under the Vehicle Code, or when a lessor, as defined in Section 372 of the Vehicle Code, transfers title and registration of a vehicle to the lessee at the expiration or termination of a lease.

(c) (1) In the event that any commercial vehicle is modified or additions are made to the chassis or body at a cost of two thousand dollars ($2,000) or more, but not including any change of engine of the same type or any cost of repairs to a commercial vehicle, the owner of the commercial vehicle shall report any modification or addition to the department and the department shall classify or reclassify the commercial vehicle in its proper class as provided in Section 10753.2, taking into consideration the increase in the market value of the commercial vehicle due to those modifications or additions, and any reclassification resulting in increase in market value shall be based on the cost to the consumer of those modifications or additions. In the event any vehicle is modified or altered resulting in a decrease in the market value thereof of two hundred dollars ($200) or more as reported to and determined by the department, the department shall classify or reclassify the vehicle in its proper class as provided in Section 10753.2.

(2) Paragraph (1) does not apply under any of the following conditions:

(A) When the cost of any modification or addition to the chassis or body of a commercial vehicle is less than two thousand dollars ($2,000).

(B) When the cost is for modifications or additions necessary to incorporate a system approved by the State Air Resources Board as meeting the emission standards set forth in subdivisions (a) and (b) of former Section 39102 and former Section 39102.5 of the Health and Safety Code as they read on December 31, 1975.

(C) When the cost is for modifications that are necessary to enable a disabled person to use or operate the vehicle.

(3) For purposes of this subdivision, "commercial vehicle" means a "commercial vehicle," as defined in Section 260 of the Vehicle Code, that is regulated by the Department of the California Highway Patrol pursuant to Sections 2813 and 34500 of the Vehicle Code.

(d) This section also applies to a system as specified in subdivision (c) that is approved by the State Air Resources Board as meeting the emission standards specified in subdivisions (a) and (b) of former Section 39102 and former Section 39102.5 of the Health and Safety Code as they read on December 31, 1975, for vehicles 6,001 pounds or less, manufacturer's gross vehicle weight, controlled to meet exhaust emission standards when sold new, when that system is used in any vehicle over 6,001 pounds or any vehicle 6,001 pounds or less not controlled to meet exhaust emission standards.

(e) The temporary attachment of any camper, as defined in Section 243 of the Vehicle Code, to a vehicle is not a modification or addition for the purposes of subdivision (c).

(f) The attachment to a vehicle of radiotelephone equipment furnished by a telephone corporation, as defined in Section 234 of the Public Utilities Code, is not a modification or addition for the purpose of subdivision (c), when that equipment is not owned by the owner of the vehicle.

(g) For purposes of this section, "vehicle" does not include trailers or semitrailers.

History.—Stats. 1948, p. 129, operative January 1, 1949, substituted present section for provision that department should compile and publish a list showing market value of vehicles. Stats. 1963, p. 1696, in effect September 20, 1963, added subdivision (e). Stats. 1965, p. 1204, in effect September 17, 1965, added subdivision (f). Stats. 1967, p. 1647, in effect November 8, 1967, amended subdivisions (a), (b), (c), and added subdivision (g), substituting the present basis for valuation for the former system under which all vehicles were valued on the basis of "delivered prices" and "cost price" was used only for certain commercial vehicles. Stats. 1969, p. 132, effective November 10, 1969, substituted "as" for "is" after "and defined" in subdivision (a); and substituted "Section 39129" for "Section 24390" in subdivision (b). Stats. 1970, p. 2992, in effect November 23, 1970, added the language following "($200)" in the second paragraph of subdivision (d). Stats. 1971, p. 2253, effective October 19, 1971, inserted subdivision (e) and relettered subdivisions (e) to (g) as subdivisions (f) to (h). Stats. 1975, Ch. 957, p. 2228, in effect January 1, 1976 substituted "former Section 39102 and former Section 39102.5 of the Health and Safety Code as they read on December 31, 1975" for "Section 39102 and Section 39102.5 of the Health and Safety Code" in the second paragraph of subdivision (d) and in subdivision (e); deleted "California" after "Section 234 of the" in subdivision (g); and substituted "cost of motor vehicle pollution" for "emission", "Part 5 (commencing with Section 43000) of Division 26" for "Section 39129", and "Automobile Information Disclosure Act (15 U.S.C., Secs. 1231 to 1233, inclusive)" for "Federal Automobile Information Disclosure Act of 1958" in subdivision (h). Stats. 1977, Ch. 373, in effect August 24, 1977, added the subsection numbers and added subsection (3) in the second paragraph of subdivision (d). Stats. 1983, Ch. 323, in effect July 21, 1983, operative October 1, 1983, substituted subdivision (a) for former subdivisions (a), (b), and (c); relettered former subdivisions (d), (e), (f), and (g) as (b), (c), (d), and (e), respectively; substituted "(b)" for "(d)" after "subdivision" in subdivisions (c), (d), and (e); and deleted former subdivision (h). Stats. 1991, Ch. 87, in effect June 30, 1991, operative August 1, 1991, substituted "upon the first sale . . . to a consumer" for "on all vehicles" after "part" in subdivision (a); added new subdivision (b); relettered former subdivisions (b), (c), (d), and (e) as subdivisions (c), (d), (e), and (f) respectively; added "10753.1 or" after "Section" in the first and second sentences of the first paragraph of the subdivision (c); and substituted "(c)" for "(b)" after "subdivision" in subdivisions (e) and (f). Stats. 1996, Ch. 228, in effect July 22, 1996, substituted "Upon" for "For the purposes of this part, upon" , substituted "sales, transactions, use, or" for "sales or" after "or any local" in the first sentence, and added the second sentence, commencing with " "Cost price" shall" in subdivision (a); numbered the first paragraph as paragraph (1), substituted "commercial vehicle" for "vehicle" six times, substituted "two thousand dollars ($2,000)" for "two hundred dollars ($200)" after "a cost of", substituted "any modification" for "any such modification" after "vehicle shall report", and substituted "those" for "such" twice in paragraph (1), numbered the second paragraph as paragraph (2), substituted "Paragraph (1) shall not apply to any of the following: (A) When" for "The foregoing provisions of this subdivision shall not apply in the event: (1)", substituted "commercial vehicle is less than two thousand dollars ($2,000). (B) When" for "vehicle is less than two hundred dollars ($200), (2)" after "body of a", substituted " 1975. (C) When" for "1975, or (3)" after "on December 31," substituted "that" for "which" after "is for modifications", and added paragraph (3) to subdivision (c); added subdivision (g); and substituted "the" or "those" for "such" throughout the text. Stats. 1997, Ch. 17 (SB 947), in effect January 1, 1998, substituted "includes" for "shall include" after " "Cost price" " in the second sentence of subdivision (a); substituted "addition" for "additions" after "any modification or" in paragraph (1) and subparagraph (A) of paragraph (2), substituted "does" for "shall" after "Paragraph (1), substituted "under" for "to" after "apply", and added "conditions" after "following" in the first sentence of paragraph (2), substituted " "commercial vehicle," " for "vehicle" in paragraph (3) of subdivision (c); and substituted "also applies" for "is also applicable" after "This section", added "as" after "a system", added "that is" after "subdivision (c)", and substituted "that" for "such a" after "when" in the first sentence of subdivision (d). Stats. 1999, Ch. 724 (AB 1650), in effect January 1, 2000, substituted "2001" for "2000" after "January 1", and added ", unless a later . . . that date" after "date is repealed" in subdivision (g). Stats. 2000, Ch. 596 (AB 2909), in effect January 1, 2001, added "California" after "Department of the" in the first sentence of paragraph (3) of subdivision (c), deleted former subdivision (g) which provided "This section shall remain in effect only until January 1, 2000, and as of that date is repealed.", and added subdivision (g). Stats. 2003, Ch. 594 (SB 315), in effect January 1, 2004, substituted "Section 10753.2" for "Section 10753.1 or 10753.2" after "determined pursuant to" in the first sentence of subdivision (b); and added "that" after "In the event", substituted "Section 10753.2" for "Section 10753.1 or 10753.2" after "as provided in", and added "an" after "consumer resulting in" in the first sentence, and substituted "Section 10753.2" for "Section 10753.1 or 10753.2" after "as provided in" in the second sentence of paragraph (1) of subdivision (c).

Note.—Sections 152–154 of Stats. 1983, Ch. 323, provided no payment by state to local agencies or school districts because of this act. Sec. 155 thereof provided the provisions of this act shall remain in effect unless and until they are amended or repealed by a later enacted act. Sec. 156 thereof provided that the provisions of the act are severable.

Note.—Stats. 1991, Ch. 87, clarified that the provisions of Section 10753 shall become operative August 1, 1991.

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10753.1. Determination of market value. [Repealed by Stats. 2001, Ch. 744 (SB 1182), in effect January 1, 2002.]

10753.2. Determination of market value. (a) After determining the cost price to the purchaser, as provided in this article, the department shall classify or reclassify every vehicle, other than a trailer or semitrailer, as described in subdivision (a) of Section 5014.1 of the Vehicle Code, in its proper class according to the classification plan set forth in this section.

(b) For the purpose of this part, a classification plan is established consisting of the following classes: a class from zero dollars ($0) to and including forty-nine dollars and ninety-nine cents ($49.99); a class fromfifty dollars ($50) to and including one hundred ninety-nine dollars andninety-nine cents ($199.99); and thereafter a series of classes successively set up in brackets having a spread of two hundred dollars ($200), consisting of a number of classes that will permit classification of all vehicles.

(c) The market value of a vehicle, other than a trailer or semitrailer, as described in subdivision (a) of Section 5014.1 of the Vehicle Code, for each registration year, starting with the year the vehicle was first sold to a consumer as a new vehicle, or the year the vehicle was first purchased or assembled by the person applying for original registration in this state, or the year the vehicle was sold to the current registered owner as a used vehicle, shall be as follows: for the first year, 100 percent of a sum equal to the middle point between the extremes of its class as established in subdivision (b); for the second year, 90 percent of that sum; for the third year, 80 percent of that sum; for the fourth year, 70 percent of that sum; for the fifth year, 60 percent of that sum; for the sixth year, 50 percent of that sum; for the seventh year, 40 percent of that sum; for the eighth year, 30 percent of that sum; for the ninth year, 25 percent of that sum; and for the 10th year, 20 percent of that sum; and for the 11th year and each succeeding year, 15 percent of that sum; provided, however, that the minimum tax shall be the sum of one dollar ($1). Notwithstanding this subdivision, the market value of a trailer coach first sold on and after January 1, 1966, that is required to be moved under permit as authorized in Section 35790 of the Vehicle Code, shall be determined by the schedule in Section 10753.3.

(d) Notwithstanding any other provision of law, this section is operative for the period beginning on and after the effective date of the act amending this subdivision.

History.—Added by Stats. 1948, p. 130, operative January 1, 1949. Stats. 1965, p. 4546, in effect September 17, 1965, added all after "($1)" in subdivision (c) and added subdivision (e). Stats. 1967, p. 1648, in effect November 8, 1967, substituted "suggested base price" for "delivered price". Stats. 1973, Ch. 889, p. 1645, in effect September 28, 1973, added "Except as otherwise provided in subdivision (f)" at the beginning of subdivisions (c) and (e); substituted "registration" for "calendar" at the beginning of subdivision (c); made nonsubstantive changes in subdivision (d); added "for each registration year of its life" after "permit" at the beginning of subdivision (e); and added subdivision (f). Stats. 1974, Ch. 1330, p. 2886, in effect September 26, 1974, substituted "is required to" for "must" in subdivision (e), and substituted "1976" for "1975" in both places in subdivision (f). Stats. 1975, Ch. 224, p. 605, in effect January 1, 1976, substituted "subdivision (e)" for "subdivision (f)" and "Section 10753.3" for "subdivision (b) of this section" in subdivision (c), delete the former subdivision (e), and relettered the former subdivision (f) as subdivision (e). Stats. 1977, Ch. 821, in effect January 1, 1978, substituted "in this article" for "above", and deleted "hereinbefore" before and added "in this article" after "provided" in the first sentence of subdivision (a); deleted "Except as otherwise provided in subdivision (e)," at the beginning of, deleted "of its life" after "registration year", added "the vehicle was" after "year", added "or the year the vehicle was first purchased or assembled by the person applying for original registration in this state," after "vehicle", and added "however," after "provided," in the first sentence, and substituted "Notwithstanding the provisions of this subdivision," for "except that" in the second sentence of subdivision (c); and deleted subdivisions (d) and (e). Stats. 1983, Ch. 323, in effect July 21, 1983, deleted "California suggested base price . . . of a vehicle or its" before "cost price" in subdivision (a); and increased the percentages for determining market value for the second through eighth years and substituted "for the ninth year, 10 percent of such sum; and for the tenth year" for "and for the ninth" after "sum" in subdivision (c). Stats. 1991, Ch. 87, in effect June 30, 1991, operative August 1, 1991, added "or reclassify" after "classify" in subdivision (a); deleted "either" after "with", added a comma after "new vehicle", added "or the year . . . a used vehicle," after "this state,", substituted "100" for "85" after "first year,", deleted "of this section" after "subdivision (b)", substituted "90" for "85" after "second year,", substituted "that" for "such" after "percent of", substituted "80" for "70" after "third year,", substituted "that" for "such" after "percent of", substituted "70" for "55" after "fourth year,", substituted "that" for "such" after "percent of", substituted "60" for "40" after "fifth year,", substituted "that" for "such" after "percent of", substituted "50" for "30" after "sixth year,", substituted "that" for "such" after "percent of", substituted "40" for "25" after "seventh year,", substituted "that" for "such" after "percent of", substituted "30" for "15" after "eighth year,", substituted "that" for "such" after "percent of", substituted "25" for "10" after "ninth year,", substituted "that" for "such" after "percent of", added ", 20 percent . . . 11th year" after "10th year", substituted "15" for "5" after "succeeding year,", substituted "that" for "such" after "percent of", in the first sentence of subdivision (c); deleted "the provisions of" after "Notwithstanding" in the second sentence of subdivision (c); added subdivision (d). Stats. 2000, Ch. 861 (SB 2084), in effect September 29, 2000, added ", other than a trailer or semitrailer," after "every vehicle" in the first sentence of subdivision (a); substituted "zero" for "no" after the first "class from" and substituted "a number of classes that" for "such number of classes as" after "consisting of" in the first sentence of subdivision (b); and added ", other than a trailer or semitrailer," after "a vehicle" in the first sentence of subdivision (c). Stats. 2001, Ch. 826 (AB 1472), in effect January 1, 2002, added ", as described in subdivision (a) of Section 5014.1 of the Vehicle Code," after "semitrailer" in the first sentence of subdivision (a) and in the first sentence of subdivison (c). Amended by Stats. 2004, Ch. 211 (SB 1096), in effect August 5, 2004.

Note.—Section 149.46 of Stats. 1983, Ch. 323, provided the amendments to this section shall be operative for any vehicle whose registration expires on or after September 30, 1983. Secs. 152–154 thereof provided no payment by state to local agencies or school districts because of this act. Sec. 155 thereof provided the provisions of this act shall remain in effect unless or until they are amended or repealed by a later enacted act. Sec. 156 thereof provided the provisions of the act are severable.

Note.—Section 13, Stats. 1991, Ch. 88, clarified that the provisions of Section 10753.2 shall become operative August 1, 1991.

Note.—Section 1 of Stats. 2001, Ch. 826 (AB 1472), provided that:

(a) The Legislature finds and declares that it is necessary to convert California's system of commercial vehicle registration from an unladen weight system to a gross vehicle weight system and to initiate a permanent trailer identification program. Furthermore, it is the intent of the Legislature that this conversion be revenue neutral to all cities and counties and all unladen weight fee system recipients.

(b) For the purposes of this act, "revenue neutrality" requires that all recipients of the fees collected under the system in effect on December 31, 2001, shall receive the same level of funding, with the same degree of flexibility, after the conversion to the system created by this act.

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10753.3. Determination of market value; trailer coach. (a) Except as otherwise provided in subdivision (b), the market value of a trailer coach which must be moved under permit, for each registration year of its life, shall be as follows: for the first year, 85 percent of a sum equal to the middle point between the extremes of its class as established in subdivision (b) of Section 10753.2; for the second year, 70 percent of such sum; for the third year, 55 percent of such sum; for the fourth year, 45 percent of such sum; for the fifth year, 40 percent of such sum; for the sixth year, 35 percent of such sum; for the seventh year, 30 percent of such sum; for the eighth year, 25 percent of such sum; for the ninth year, 24 percent of such sum; for the 10th year, 23 percent of such sum; for the 11th year, 22 percent of such sum; for the 12th year, 21 percent of such sum; for the 13th year, 20 percent of such sum; for the 14th year, 19 percent of such sum; for the 15th year, 18 percent of such sum; for the 16th year, 17 percent of such sum; for the 17th year, 16 percent of such sum; for the 18th year and each succeeding year, 15 percent of such sum.

(b) For the purposes of this section, the market value of vehicles which have been previously registered and which, because they are being converted to year-round registration, become subject to registration twice during the 1976 calendar year, shall be deemed to be the same throughout the 1976 calendar year and shall not change until the registration subsequently expires.

History.—Added by Stats. 1974, Ch. 1051, p. 2269, in effect January 1, 1975.

10753.4. Cost price; computation and separate statement; trailer coach. (a) Notwithstanding any other provisions of law, every dealer who sells a trailer coach required to be moved under permit shall state on a certificate attached to the sales contract the cost price upon which the vehicle license fee is computed separately from the cost of accessories or other charges for such trailer coach.

(b) The department shall determine what items shall be included and what items shall not be included in the cost price upon which the vehicle license fee is computed for a trailer coach required to be moved under a permit and the manner of computation of such cost price. The department shall notify every dealer authorized to sell a trailer coach required to be moved under a permit of (1) the requirement that the sales contract state the cost price upon which the vehicle license fee is computed separately from the cost of accessories or other charges for such trailer coaches and (2) the manner in which such cost price is to be determined.

History.—Added by Stats. 1976, Ch. 1043, p. 4663, in effect January 1, 1977.

10753.5. Amount of fee for vehicle of historic value. Notwithstanding any other provisions of this part, the annual amount of the license fee for a vehicle that has been assigned a special identification plate or plates as described in Section 5004 of the Vehicle Code shall be two dollars ($2).

History.—Added by Stats. 1971, p. 2859, in effect March 4, 1972. Stats. 2002, Ch. 528 (AB 1906), in effect January 1, 2003, added "that has been assigned a special identification plate or plates as" after "for a vehicle" in the first sentence of the first paragraph.

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10753.6. Exclusion; cost of modifications for disabled person. (a) Notwithstanding any other provisions of this part, the cost of any modifications to any vehicle which are necessary to enable a disabled person to use or operate such vehicle shall be excluded from the determination of the market value of the vehicle, for purposes of determining the license fee imposed by any provision of this part.

(b) (1) The department, pursuant to the request of a qualified disabled owner of a vehicle which was registered prior to the effective date of this section, shall exclude from the market value of such vehicle the cost of any modification or alteration required to adapt such vehicle to such disabled person's needs as either a driver or passenger, if such cost was previously included in the determination of the market value of such vehicle.

(2) There shall be no reduction in the amount of vehicle license fees or market value determination pursuant to this section with regard to fees imposed prior to the effective date of this section.

(3) For purposes of paragraph (1), a "qualified disabled owner" means a disabled person who qualifies for a distinguishing license plate or placard under Section 22511.5 of the Vehicle Code whose vehicle was registered prior to the effective date of this section.

History.—Added by Stats. 1977, Ch. 373, in effect August 24, 1977.

10753.7. Adjustment of fee. (a) Upon the sale or transfer of ownership of a used vehicle currently registered in this state, if any license fee due thereon has already been paid, no adjustment of the current year license fee shall be made.

(b) Any adjustment of vehicle license fees, based upon a redetermination of market value pursuant to subdivision (a) of Section 10753 and modification of vehicle license fee classification pursuant to Section 10753.2, shall occur upon the expiration of current registration and shall be reflected in the fees due for the first renewal of registration following the sale or transfer of ownership of that used vehicle.

History.—Added by Stats. 1991, Ch. 87, in effect June 30, 1991, operative August 1, 1991. Stats. 2003, Ch. 594 (SB 315), in effect January 1, 2004, substituted "Section 10753.2" for "Section 10753.1 or 10753.2" after "classification pursuant to" in the first sentence of subdivision (b).

Note.—Section 13, Stats. 1991, Ch. 88, clarified that the provisions of Section 10753.7 shall become operative August 1, 1991.

10753.8. Surcharge. [Repealed by Stats. 2004, Ch. 211 (SB 1096), in effect August 5, 2004.]

10753.9. Determination of market value. [Repealed by Stats. 2001, Ch. 744 (SB 1182), in effect January 1, 2002.]

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10754. Vehicle license fee; offset. (a) Notwithstanding any other provision of law, the total amount of the vehicle license fee otherwise required with respect to a vehicle shall be offset in accordance with those provisions set forth below that are operative pursuant to subdivision (b):

(1) (A) For any initial or original registration of any vehicle, never before registered in this state, for which the final due date for the license fee is on or after January 1 of any calendar year for which this paragraph is operative, and for any renewal of registration with an expiration date on or after January 1 of any calendar year for which this paragraph is operative, the department shall offset the total amount of fees otherwise due at the time of registration of that vehicle by an amount equal to 25 percent of the amount computed pursuant to Section 10752 or 10752.1, or Section 18115 of the Health and Safety Code.

(B) Upon proper payment of license fees to the Department of Motor Vehicles, the amount of the offset for each vehicle shall be transferred into the Motor Vehicle License Fee Account in the Transportation Tax Fund, and into the Local Revenue Fund, pursuant to Section 11000 or Section 11000.1, as applicable.

(C) During any period in which insufficient moneys are available to be transferred from the General Fund to fully fund the offsets required by subparagraph (A), within 90 days of a reduction of funding, the department shall reduce the amount of each offset computed pursuant to that subparagraph by multiplying that amount by the ratio of the amount of moneys actually available to be transferred from the General Fund to pay for those offsets to the amount of moneys that is necessary to fully fund those offsets.

(2) (A) For any initial or original registration of any vehicle, never before registered in this state, for which the final due date for the license fee is on or after January 1 of any calendar year for which this paragraph is operative, and for any renewal of registration with an expiration date on or after January 1 of any calendar year for which this paragraph is operative, the department shall offset the total amount of fees otherwise due at the time of registration of that vehicle by an amount equal to 35 percent of the amount computed pursuant to Section 10752 or 10752.1, or Section 18115 of the Health and Safety Code.

(B) Upon proper payment of license fees to the Department of Motor Vehicles, the amount of the offset for each vehicle shall be transferred into the Motor Vehicle License Fee Account in the Transportation Tax Fund, and into the Local Revenue Fund, pursuant to Section 11000 or Section 11000.1, as applicable.

(C) During any period in which insufficient moneys are available to be transferred from the General Fund to fully fund the offsets required by subparagraph (A), within 90 days of a reduction of funding, the department shall reduce the amount of each offset computed pursuant to that subparagraph by multiplying that amount by the ratio of the amount of moneys actually available to be transferred from the General Fund to pay for those offsets to the amount of moneys that is necessary to fully fund those offsets.

(3) For any initial or original registration of any vehicle, never before registered in this state, for which the final due date for the license fee is on or after January 1 of any calendar year for which this paragraph is operative, and for any renewal of registration with an expiration date on or after January 1 of any calendar year for which this paragraph is operative, the department shall offset the total amount of fees otherwise due at the time of registration of that vehicle by an amount equal to 671/2 percent of the amount computed pursuant to Section 10752 or 10752.1, or Section 18115 of the Health and Safety Code.

(b) The offset provisions set forth in subdivision (a) shall be operative as provided by the following:

(1) Paragraph (1) of subdivision (a) shall be operative for vehicle license fees with a final due date in the calendar year beginning on January 1, 1999.

(2) Paragraph (2) of subdivision (a) shall be operative for vehicle license fees with a final due date on or after January 1, 2000, and before July 1, 2001.

(3) Paragraph (3) of subdivision (a) shall be operative for vehicle license fees with a final due date on or after July 1, 2001, and before January 1, 2005.

(c) (1) For purposes of this section, "department" means the Department of Motor Vehicles with respect to a vehicle license fee offset for a vehicle subject to registration under the Vehicle Code, and the Department of Housing and Community Development with respect to a vehicle license fee offset for a manufactured home, mobilehome, or commercial coach described in Section 18115 of the Health and Safety Code.

(2) For purposes of this section, the "final due date" for a license fee is the last date upon which that fee may be paid without being delinquent.

(d) This section is repealed on January 1, 2005.

History.—Stats. 1947, p. 2018, in effect September 19, 1947, included previously registered nonresident vehicles within the scope of the section. Stats. 1951, p. 155, in effect September 22, 1951, substituted "for" for "by" following "imposed." Stats. 1973, Ch. 889, p. 1646, in effect September 28, 1973, provided for adjustment for both late and early registration. Stats. 1999, Ch. 74 (AB 1121), in effect July 7, 1999, added paragraph (1.3) to subdivisions (a) and (b), and added "(1.3)," after "unless paragraph" in paragraph (1) and added paragraph 1.3 to of subdivision (b). Stats. 2001, Ch. 5 (SB 22), in effect April 19, 2001, operative July 1, 2001, deleted former paragraphs (1.3), (3) and (4), and renumbered former paragraph (5) as paragraph (3) in subdivision (a); substituted "the calendar year beginning on January 1, 1999" for "each calendar year beginning on or after January 1, 1999, unless paragraph (1.3), (2), (3),(4) or (5) of subdivision (a) becomes operative. In that event, paragraph (1) of subdivision (a) will be inoperative only for that period during which one of those paragraphs is operative." after "due date" in the first sentence of paragraph (1), renumbered former paragraph (1.3) as paragraph (2), substituted "(2)" for "(1.3)" after "Paragraph", and substituted "on or after January 1, 2000, and before July 1, 2001" for "in the calendar year beginning on January 1, 2000" after "due date" in the first sentence therein, deleted former paragraphs (2), (3), (4), (5), (6), (7), (8), (9) and (10), renumbered former paragraph (11) as paragraph (3) and substituted "(3)" for "(5)" after "Paragraph", added "on or after July 1, 2001." after "due date", deleted the balance of the first sentence and deleted the balance of the paragraph therein, and deleted former paragraphs (12), (13), (14), and (15) of subdivision (b); and added "with respect to . . . the Vehicle Code," after "Motor Vehicles" and added "with respect to . . . Safety Code." after "Development" in the first sentence of paragraph (1) and deleted former paragraphs (3), (4), and (5) of subdivision (c). Stats. 2003, Ch. 231 (AB 1768), in effect January 1, 2004, added subparagraph (D) to paragraph (3) of subdivision (a). Amended by Stats. 2004, Ch. 24 (SB 1057), in effect March 5, 2004. Amended by Stats. 2004, Ch. 37 (AB 1457), in effect April 4, 2004. Amended by Stats. 2004, Ch. 211 (SB 1096), in effect August 5, 2004.

Note.—Section 5 of Stats. 2001, Ch. 5 (SB 22), provided that this act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect. However, this act shall become operative on July 1, 2001, except that the additional vehicle license fee offset established by Section 10754.2 of the Revenue and Taxation Code, as amended by Section 2 of Chapter 107 of the Statutes of 2000, shall continue to be operative on or after July 1, 2001, with respect to those vehicle license fees with a final due date before July 1, 2001.

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10754.1. International Registration Program. For purposes of applying paragraph (1) of subdivision (b) of Section 10754, the vehicle license fees, due in 1998 on or before December 31 of that year for a vehicle subject to the International Registration Program as described in Section 8052 of the Vehicle Code, are deemed to have had a final due date in the 1999 calendar year. It is the intent of the Legislature that this section be implemented to apply the 25 percent offset specified in paragraph (1) of subdivision (a) of Section 10754 to the vehicle license fees described in the preceding sentence. The department shall apply the amount of each vehicle license fee reduction resulting from this section against the amount of vehicle license fees due and payable on the part of the relevant registrant in 1999.

History.—Added by Stats. 1999, Ch. 76 (SB 688), in effect July 7, 1999.

10754.11. Gap Repayment Fund. (a) (1) On August 15, 2006, the Controller shall transfer from the General Fund to the Gap Repayment Fund, which is hereby created in the State Treasury, an amount equal to the total amount of offsets that were applied to new vehicle registrations before October 1, 2003, and that were applied to vehicle license fees with a due date before October 1, 2003, that were not transferred into the Motor Vehicle License Fee Account in the Transportation Tax Fund and the Local Revenue Fund due to the operation of Item 9100-102-0001 of Section 2.00 of the Budget Act of 2003. The amount of this transfer shall include transfers not made for offsets applied on or after June 20, 2003, transfers required under clause (iii) of subparagraph (B) of paragraph (2) of subdivision (a) of Section 11000 as that section read on June 30, 2004, and the additional amounts required to be transferred to the Local Revenue Fund pursuant to paragraph (2) of subdivision (a) of Section 11001.5 and paragraph (2) of subdivision (d) of that same section, less any amount that was appropriated under clause (iii) of subparagraph (D) of paragraph (3) of subdivision (a) of Section 10754, as that section read on June 30, 2004.

(2) The Controller may make the transfer required by paragraph (1) prior to August 15, 2006, if that transfer is authorized by the Legislature.

(b) Moneys in the Gap Repayment Fund are hereby appropriated to the Controller for allocation by the Controller to each city, county, and city and county in an amount equal to the amount that was not allocated to each of these entities due to the operation of Item 9100-102-001 of Section 2.00 of the Budget Act of 2003, less any amount that was allocated to each entity under clause (ii) of subparagraph (D) of paragraph (3) of subdivision (a) of Section 10754, as that section read on June 30, 2004.

(c) This section is operative for the period beginning on and after July 1, 2004.

History.—Added by Stats. 2004, Ch. 211 (SB 1096), in effect August 5, 2004. Amended by Stats. 2004, Ch. 610 (AB 2115), in effect September 20, 2004.

10754.2. Revenue forecast; exclusion. [Repealed by Stats. 2001, Ch. 5 (SB 22), in effect April 19, 2001, operative July 1, 2001.]

10754.2. Vehicle license fee; additional offset. [Repealed by Stats. 2001, Ch. 5 (SB 22), in effect April 19, 2001, operative July 1, 2001.]

10755. Registration year less than or more than 12 months. When-ever, by reason of the assignment or reassignment of an expiration date by the Director of Motor Vehicles, the registration year for the vehicle is less than, or more than, 12 months, the fee for the vehicle shall be decreased or increased by one-twelfth of the annual fee for each month of such period less than, or in excess of, 12 months.

History.—Stats. 1947, p. 2018, in effect September 19, 1947, included previously registered nonresident vehicles within the scope of the section. Stats. 1951, p. 155, in effect September 22, 1951, substituted "for" for "by" following "imposed." Stats. 1973, Ch. 889, p. 1646, in effect September 28, 1973, provided for adjustment for both late and early registration.

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10756. Exempt vehicles; change of ownership; fee. If any vehicle which is exempt under Section 10781 or 10782 ceases to be so exempt by reason of change of ownership, the application shall be deemed an application for original registration for the purposes of determining the expiration date of the registration and subsequent renewals thereof.

History.—Stats. 1963, p. 3853, in effect September 20, 1963, amended section to include § 10782 exemptions. Stats. 1973, Ch. 889, p. 1646, in effect September 28, 1973, operative December 1, 1974, deleted "after the beginning of any registration year" after "so exempt", and substituted the language beginning with "application" for a former provision relating to a reduction in fees. Stats. 1974, Ch. 1330, p. 2898, in effect September 26, 1974, postponed the operative date of Stats. 1973, Ch. 889, p. 1646, to December 1, 1975.

10757. Transfer of ownership; additional fee. (a) No additional license fee shall be imposed under this part upon any vehicle upon the transfer of ownership of the vehicle, except as provided under Section 9563 of the Vehicle Code, if any license fee due thereon has already been paid for the year in which the transfer of ownership occurs.

(b) In the event that additional fees are required on a vehicle due to a prior departmental error, no penalty shall be assessed against the application for the transfer of registration when the required additional fees are paid.

History.—Stats. 1957, p. 2467, in effect September 11, 1957, added the subdivision letters and subdivision (b). Stats. 1971, p. 2681, in effect March 4, 1972, added "except as provided in Section 9563 of the Vehicle Code" after "vehicle," in subdivision (a).

10758. Fee in lieu of ad valorem taxes. The license fee imposed under this part is in lieu of all taxes according to value levied for state or local purposes on vehicles of a type subject to registration under the Vehicle Code whether or not the vehicles are registered under the Vehicle Code.

"Vehicle of a type subject to registration under the Vehicle Code," as used in this section, includes, but is not limited to, (a) any motor vehicle in the inventory of vehicles held for sale by a manufacturer, remanufacturer, distributor, or dealer in the course of his or her business, (b) any unoccupied trailer coach in the inventory of trailer coaches held for sale by a manufacturer, remanufacturer, distributor, or dealer in the course of his or her business, or (c) any vehicle described in Section 5004 of the Vehicle Code, not used in a trade, profession, or business, whether or not the vehicle has been issued special identification plates.

History.—Stats. 1943, p. 2171, in effect August 4, 1943, reworded latter portion of Section. Stats. 1964, p. 190 (First Extra Session), in effect May 4, 1964, added the second paragraph and provided, in Sec. 2 of the act that, "The amendments which are made to Section 10758 of the Revenue and Taxation Code by Section 1 of this act do not constitute a change in, but are declaratory of, the preexisting law." Stats. 1971, p. 2859, in effect March 4, 1972, added subdivision (c) in the second paragraph. Stats. 1983, Ch. 1286, in effect January 1, 1984, added "remanufacturer" after the first and second "manufacturer", added "or her" after the first and second "his", and substituted "the" for "such" after "or not" in the second paragraph.

Relocatable offices.—Mobile structures designed and built for human occupancy and having characteristics and uses similar to those of mobile homes are trailer coaches subject to registration under the Vehicle Code, and their license fees are in lieu of all taxes according to value, including ad valorem personal property taxes levied for local purposes. Mobilease Corp. v. Orange County, 42 Cal.App.3d 461.

Construction.—Since the in lieu provision of this section applies only to vehicles subject to registration and not subject to section 994, it cannot be construed as authorization for refund of all fees collected without regard to the claim limitations of Vehicle Code, sections 42231 and 42232. Piazza Properties, Ltd. v. Department of Motor Vehicles, 71 Cal.App.3d 622.

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10759. Fee to be in even dollars. In computing any fee, offset, or penalty imposed by this chapter, whether on a proration or otherwise, a fraction of a dollar is disregarded, unless it equals or exceeds fifty cents ($0.50), in which case it is treated as one full dollar ($1). Computation of any penalty shall be made from the fee after the same has been computed as provided in this section.

Any fee, offset, or penalty in an amount of forty-nine cents ($0.49) or less shall be deemed to be one dollar ($1).

History.—Added by Stats. 1947, p. 3783 (First Extra Session), in effect January 1, 1948. Stats. 1948, p. 132, in effect April 21, 1948, amended first paragraph by substituting "any" for "the" preceding "fee" and adding sentence providing for computation of penalty, added "or penalty" following "fee" in both paragraphs, and amended second paragraph by substituting "of fifty cents ($0.50) or less" for "less than fifty cents ($0.50)" and deleting sentence providing the effective date. Stats. 1992, Ch. 1241, in effect January 1, 1993, added "equals or" after "unless it" in the first sentence of the first paragraph; and substituted "forty-nine cents ($0.49)" for "fifty cents ($0.50)" after "amount of" in the second paragraph. Stats. 1998, Ch. 322 (AB 2797), in effect August 20, 1998, added ", offset," after "fee" twice, in the first sentence of the first and second paragraphs.

10759.5. Lapsed registration. [Repealed by Stats. 1984, Ch. 1760, in effect October 1, 1984.]

10759.5. Alternative fuels; exemption. (a) For purposes of determining the vehicle license fee imposed by this part, there are exempted from the determination of market value, the incremental costs of new light-duty motor vehicles propelled by alternative fuels, and certified by the State Air Resources Board as producing emissions that meet the emission standard for ultra-low-emission vehicles or lower as defined by the board. This exemption shall apply to the subsequent payments of the vehicle license fee.

(b) For purposes of this section, "incremental cost" means the amount determined by the State Energy Resources Conservation and Development Commission as the reasonable difference between the cost of the motor vehicle defined in subdivision (a) and the cost of a comparable gasoline or diesel fuel vehicle. This determination shall constitute the maximum incremental cost for purposes of the exemption in subdivision (a), and may be reduced by the actual sales price of the vehicle. The actual incremental cost shall be stated in the contract for sale or lease with the purchaser, and shall be reported to the commission quarterly.

(c) This section shall become operative on January 1, 1999, and shall remain in effect only until January 1, 2009, and as of that date is repealed.

History.—Added by Stats. 888 (SB 1782) in effect September 28, 1998, operative January 1, 1999. Stats. 2002, Ch. 566 (AB 2461), in effect September 15, 2002, substituted "January 1, 2009" for "January 1, 2003" after "effect only until" in the first sentence of subdivision (c).

Note.—Section 1 of Stats. 2002, Ch. 566 (AB 2461) provided that the Legislature finds and declares:

(a) There is a wide disparity on fees levied on owners of vehicles operated on alternative fuels when compared to those same taxes and fees levied on owners of comparable conventional fuel vehicles.

(b) In some cases, the fees on alternative fuel vehicles are more than twice as much as those for conventional fuel vehicles.

(c) The disparity in fees exists even though the alternative fuel vehicle may look identical to the conventional fuel vehicle and provide the same or lesser utility to the individual owner.

(d) The existing California vehicle license fee on motor vehicles that operate on alternative fuels is higher than for comparable conventional fuel vehicles because alternative fuel vehicles generally have higher sales prices. The higher sales prices are largely due to the fact that these vehicles are produced in extremely low volumes (many assembled by hand), such that their production has not achieved the economies of scale that would significantly reduce their cost; and they use many new advanced materials and technologies that also have not yet achieved economies of scale, and therefore have a temporarily greater cost to consumers.

(e) The higher sales prices for these alternative fuel vehicles are expected to be a short-term, temporary situation because prices are expected to decline significantly to competitive levels as volume increases. If this does not occur, these vehicles may never be competitive, and automakers would likely withdraw them from the market. The current vehicle license fee mechanism does not reflect these temporary, short-term pricing situations. Instead they intrinsically, but incorrectly, assume that these short-term higher prices reflect true long-term market value of the vehicles.

(f) Alternative fuel vehicles provide benefits to California citizens that are external to, or not reflected in, their cost to the purchaser. These benefits include: increasing our national independence from foreign energy sources; providing more transportation choices for consumers and businesses, thus reducing our economic vulnerability to sudden fuel price increases caused by external or internal events; reducing air pollution from mobile sources; reducing future pressures for additional environmental controls on existing and new businesses and industries in California; and creating new advanced transportation technology jobs and industries in California.

(g) It is the public policy of the State of California, the federal government, and many local governments, to encourage the development and use of alternative fuel vehicles, for the purpose of providing the benefits described above to all California citizens.

(h) Existing vehicle license fee structures, as they relate to the determination of market value of alternative fuel vehicles, do not reflect the critical short-term pricing issues described above, nor the external benefits that accrue to all California citizens. Additionally, these existing fees act as a significant disincentive to potential purchasers of alternative fuel vehicles, and as such, are contrary to existing public policies at all levels of government.

(i) It is the intent of the Legislature to equalize the vehicle license fee between alternative fuel vehicles and conventional fuel vehicles for a period of four years, beginning January 1, 1999, and ending December 31, 2008. During this time period it is the intent of the Legislature that the incremental or differential cost between an alternative fuel vehicle and a comparable conventional fuel vehicle, as determined by the State Energy Resources Conservation and Development Commission, should be exempt from the vehicle license fee.

(j) To ensure that the alternative fuel vehicles subject to these provisions provide significant reduction in air pollution, eligible vehicles must meet, at a minimum, the standard for ultra-low-emission vehicles as determined by the State Air Resources Board.

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10760. Waiver of delinquency. [Repealed by Stats. 1984, Ch. 1760, in effect October 1, 1984.]

10760. Reinstatement. (a) Notwithstanding any other provision of law, a mobilehome sold new on or before June 30, 1980, on which the license fee required to be paid under this part has been delinquent for 120 days or more, shall not be subject to local property taxation, if a request for reinstatement to the vehicle license fee under this part is filed with the Department of Housing and Community Development with a postmark dated no later than December 31, 1986, showing verification by the county tax collector that payment of property taxes on the mobilehome is current, as of the date of filing.

(b) Applications for filing for reinstatement pursuant to this section shall be provided by the Department of Housing and Community Development through its offices and offices of county assessors and county tax collectors.

(c) A mobilehome shall not qualify for reinstatement to the license fee under this part unless payment of property taxes on the mobilehome is current. Reinstatement applications shall include a provision for county tax collectors to verify that the payment of property taxes is current. For purposes of this section, mobilehome owners who submit reinstatement applications to the tax collector for verification prior to September 1st of the fiscal year for which property taxes on the mobilehome will be due and whose verified applications are filed with the department with a postmark date no later than 30 days thereafter are considered current on the payment of property taxes if the payment of property taxes on the mobilehome for prior fiscal years has been satisfied.

(d) A mobilehome, on which the license fee required to be paid under this part has been delinquent for 120 days or more, which was not actually enrolled on the local property tax roll prior to October 1, 1984, shall not be subject to local property taxation as a condition of reinstatement to the license fee under this part. Tax collectors shall verify on the reinstatement application that such a mobilehome was not enrolled prior to October 1, 1984. Any license fee and penalty which would otherwise be due under this part during the period of delinquency shall be paid to the Department of Housing and Community Development as a condition of reinstatement to the license fee.

(e) Any used mobilehome, the sale of which has not been subject to sales or use tax pursuant to Section 6379 or Section 18116.5 of the Health and Safety Code, shall not qualify for reinstatement to the license fee under this part unless, in addition to the other requirements of this section, the full sales or use tax liability on the last sale, which would have been owed if the mobilehome had not been subject to property taxation, is paid.

(f) The Department of Housing and Community Development, upon receiving the verified reinstatement application and determining that the requirements of this section have been complied with, shall reinstate the mobilehome to the license fee, establish a license fee renewal date for the mobilehome, and notify the county tax assessor to remove the mobilehome from the local property tax roll.

History.—Added by Stats. 1984, Ch. 1760, in effect October 1, 1984. Stats. 1985, Ch. 397, effective July 30, 1985, added subdivision (d), and relettered former subdivisions (d) and (e) as subdivisions (e) and (f), respectively.

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Article 1.5. Trailer Coaches

10766. "Trailer coach" defined. For the purpose of this article, "trailer coach" shall have the same meaning that is provided in the Vehicle Code.

History.—Added by Stats. 1955, p. 2982, in effect September 7, 1955.

10767. Application of this part. The provisions of this part shall apply to trailer coaches except as otherwise provided in this article.

History.—Added by Stats. 1955, p. 2982, in effect September 7, 1955.

10768. Sections not applicable. Sections 10853, 10854, 10855, and 10856 of this part do not apply to the license fee imposed with respect to trailer coaches.

History.—Added by Stats. 1955, p. 2982, in effect September 7, 1955.

10769. Delinquency. Whenever any trailer coach is in this State without the license fee having first been paid as required by Section 10851 of this part, the fee is delinquent.

History.—Added by Stats. 1955, p. 2982, in effect September 7, 1955.

10770. Penalty for delinquency. (a) If the fee for an original registration is not paid within 20 days after it becomes delinquent, a penalty equal to 20 percent of the fee shall be added and collected with the fee.

(b) A penalty of 20 percent of the license fee shall be added on any application for original or renewal of year-round or annual registration made later than midnight of the date of expiration or on or after the date penalties become due. This penalty shall be computed after the vehicle license fee has been combined with the registration and weight fees as provided in Sections 9250 and 9400 of the Vehicle Code.

(c) Notwithstanding subdivision (a), any penalty that became due prior to January 1, 1978, shall be computed at the rate of penalty which was then in effect.

History.—Added by Stats. 1973, Ch. 889, p. 1647, in effect September 28, 1973. Stats. 1974, Ch. 1330, p. 2888, in effect September 26, 1974, operative March 8, 1976, deleted the former second sentence of subdivision (b); substituted "1976" for "1975" in subdivision (c); added subdivision (d); and substituted "March 8, 1976" for "March 10, 1975" in the first sentence of the fifth paragraph, and added the balance thereof after "on March 8, 1976". Stats. 1978, Ch. 818, in effect January 1, 1979, substituted "20 percent" for "50 percent" in the first sentences of subdivisions (a) and (b); substituted "January 1, 1978" for "March 8, 1976" in subdivision (d); and deleted the former fifth paragraph. Stats. 1998, Ch. 601 (SB 1250), in effect January 1, 1999, substituted "and collected with the fee" for "thereto and to be collected therewith" after "added" in the first sentence of subdivision (a); substituted "This" for "Such" before "penalty" and deleted ", 9253," after "9250" in the second sentence of subdivision (b); deleted former subdivision (c) which provided for calculation of penalties for the 1976 registration year; and relettered former subdivision (d) as subdivision (c) and deleted "of this section" after "subdivision (a)", and substituted "that" for "which" after "penalty" therein.

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Article 2. Exemptions

10781. Vehicles owned by United States, foreign governments, state, etc. The license fee imposed by this part does not apply to any vehicle owned by the United States, by any foreign government, by a consul or other official representative of any foreign government, by the state, by any political subdivision of the state, or by any city, city and county, county, district, public corporation, or by a public fire department organized as a nonprofit corporation and used exclusively for fire fighting purposes or exclusively as an ambulance.

History.—Stats. 1949, p. 2274, in effect October 1, 1949, added clause relating to vehicles used for fire fighting purposes. Stats. 1967, p. 3366, in effect November 8, 1967, added "or exclusively as an ambulance".

10781.1. Vehicles owned by Indian tribes. The license fee imposed by this part does not apply to any vehicle that is owned by a federally recognized Indian tribe, if the vehicle is used exclusively within the boundaries of lands under the jurisdiction of that Indian tribe, including the incidental use of that vehicle on highways within those boundaries.

History.—Added by Stats. 1999, Ch. 911 (AB 1474), in effect January 1, 2000.

10782. Vehicles leased by state; persons engaged in transportation. (a) The license fee imposed by this part does not apply to any vehicle operated by the state, or by any county, city and county, city, district, or political subdivision of the state, or the United States, as a lessee under a lease, lease-sale, or rental-purchase agreement which grants possession of the vehicle to the lessee for a period of 30 consecutive days or more.

(b) The license fee imposed by this part does not apply to any privately owned schoolbus, as defined in Section 545 of the Vehicle Code, which is either:

(1) Owned by a private nonprofit educational organization and operated in accordance with the rules and regulations of the Department of Education exclusively in transporting school pupils, or school pupils and employees, of such private nonprofit educational organization, or

(2) Operated in accordance with the rules and regulations of the Department of Education exclusively in transporting school pupils, or school pupils and employees, of any public school or private nonprofit educational organization pursuant to a contract between a public school district or nonprofit educational organization and the owner or operator of the schoolbus.

This subdivision shall not, however, be applicable to any schoolbus which is operated pursuant to any contract which requires the public school district or nonprofit educational organization to pay any amount representing the costs of registration and weight fees unless and until the contract is amended to require only the payment of an amount representing the fee required by this section.

History.—Stats. 1963, p. 3852, in effect September 20, 1963, amended and added "or the United States," and changed "12 months or more" to read "30 consecutive days." Stats. 1969, p. 2954, in effect November 10, 1969, added "subdivision" between "This" and "does" in the first sentence of the second paragraph of subdivision (a) and added subdivision (b). Stats. 1973, Ch. 411, p. 874, in effect September 10, 1973, numbered the paragraphs in subdivision (b) and added subdivision (b)(1). Stats, 1974, Ch. 1204, p. 2607, in effect September 23, 1974, deleted the former second paragraph of subdivision (a), thereby extending the exemption therein to vehicles leased, under agreements made after February 5, 1940, by such entities for the transportation of persons for hire, compensation, or profit.

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Text of section operative until July 1, 1999

10783. Vehicles owned by disabled veterans. (a) The license fee imposed by this part does not apply to a passenger vehicle, a motorcycle, or a commercial vehicle of less than 6,001 pounds unladen weight, unless the vehicle is used for transportation for hire, compensation, or profit, if the vehicle is owned by any disabled veteran, as described in Section 22511.9 of the Vehicle Code, or any veteran who is a Congressional Medal of Honor recipient.

(b) The exemption granted by this section shall extend to not more than one vehicle owned by the veteran. The Department of Motor Vehicles may require any disabled veteran applying for an exemption under this section to submit a certificate signed by a physician or surgeon substantiating the disability. The Department of Motor Vehicles may require any person applying for an exemption under this section by reason of receiving the Congressional Medal of Honor to submit satisfactory proof that he or she is a Congressional Medal of Honor recipient.

(c) This section shall remain in effect only until July 1, 1999, and as of that date is repealed, unless a later enacted statute, that is enacted before July 1, 1999, deletes or extends that date.

History.—Added by Stats. 1949, p. 2234, in effect October 1, 1949. Stats. 1951, p. 2339, in effect September 22, 1951, added "other than a commercial vehicle," deleted "paraplegic" preceding "veteran," substituted clause commencing with "who" for former clause limiting exemption to vehicle given paraplegic veteran by United States Government, and added last paragraph. Stats. 1955, p. 2463, in effect September 7, 1955, added reference to permanently blind veteran. Stats. 1961, p. 1017, in effect March 31, 1961, substituted "6202" for "9183." Stats. 1969, p. 1736, in effect November 10, 1969, added "two or more limbs, or one eye and any limb" after ". . . the use of," in the first sentence of the first paragraph. Stats. 1974, Ch. 922, p. 1936, in effect January 1, 1975, substituted "of the following vehicles, which are not used for transportation for hire, compensation, or profit, when" for "vehicle, other than a commercial vehicle,", substituted "any" for "a" after "owned by", substituted "Section 19153 of the Welfare and Institutions Code" for "Section 6202 of the Education Code", and substituted "armed forces" for "military, naval, or air forces" in the first sentence of the first paragraph, and added ":", and subdivisions (a), (b), and (c) at the end thereof. Stats. 1979, Ch. 612, in effect January 1, 1980, added "whose disability has been rated, by the United States Veterans' Administration or the military service from which such veteran was discharged, at 100 percent due to a diagnosed disease or disorder which substantially impairs or interferes with mobility, or who is so severely disabled as to be unable to move without the aid of an assistant device, or" after "veteran" in the first sentence of the first paragraph, and added the second sentence of the second paragraph. Stats. 1982, Ch. 235, in effect January 1, 1983, added ", and any veteran who is a Congressional Medal of Honor recipient who was born in the state or who either resided in the state at the time of entry into military service or has been a resident continuously since January 1, 1977" after "United States" in the first sentence of the first paragraph. Stats. 1983, Ch. 415, in effect January 1, 1984, substituted "a passenger vehicle . . . vehicle is" for "any of the following vehicles, which are not" after "apply to", substituted "if the vehicle is" for "when" after "profit", substituted "the" for "such" after "from which", and deleted the balance of the first sentence pertaining to residency and vehicle type after "recipient" in the first paragraph; and substituted "the" for "any such" before "veteran" in the first sentence, and added "any disabled veteran to submit" after "require" in the second sentence of the second paragraph. Stats. 1985, Ch. 1041, effective January 1, 1986, substituted "disabled veteran, as described in Section 22511.9 of the Vehicle Code, or" for "veteran whose disability has been rated by the United States Veterans' Administration or the military service from which the veteran was discharged, at 100 percent due to . . . or who is so severely disabled . . . as a result of injury or disease suffered while on active service with the armed forces of the United States, and" after "any" in the first sentence of the first paragraph; and added "applying for an exemption under this section" after "disabled veteran" in the second sentence, and added the third sentence to the second paragraph. Stats. 1998, Ch. 563 (SB 1492), in effect January 1, 1999, added the subdivision letters and added subdivision (c).

Note.—Section 3 of Stats. 1979, Ch. 612, provided no payment by state to local governments because of this act.

Text of section operative July 1, 1999

10783. Vehicles owned by disabled veterans. (a) The license fee imposed by this part does not apply to a passenger vehicle, a motorcycle, or a commercial vehicle of less than 8,001 pounds unladen weight, unless the vehicle is used for transportation for hire, compensation, or profit, if the vehicle is owned by any disabled veteran, as defined in Section 295.7 of the Vehicle Code, any former American prisoner of war, or any veteran who is a Congressional Medal of Honor recipient.

(b) The exemption granted by subdivision (a) shall extend to not more than one vehicle owned by the veteran, or former American prisoner of war, and is applicable to the same vehicle as described in subdivision (b) of Section 9105 of the Vehicle Code.

(c) (1) The Department of Motor Vehicles may require any disabled veteran applying for an exemption under this section to submit a certificate signed by a physician or surgeon substantiating the disability.

(2) The Department of Motor Vehicles may require any person applying for an exemption under this section for either of the following reasons to do any of the following:

(A) By reason of the person's status as a former American prisoner of war, to show, by satisfactory proof, his or her former prisoner-of-war status.

(B) By reason of the person's status of receiving the Congressional Medal of Honor, to show, by satisfactory proof, that he or she is a Congressional Medal of Honor recipient.

(d) This section shall become operative on July 1, 1999.

History.—Added by Stats, 1998, Ch. 563 (SB 1462), in effect January 1, 1999, operative July 1, 1999.

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10784. Mobilehomes sold and installed on foundation systems. (a) The license fee imposed by this part does not apply to any mobilehome as defined in Sections 18008 and 18211 of the Health and Safety Code which is sold and installed on a foundation system, pursuant to Section 18551 of the Health and Safety Code.

(b) Any mobilehome exempted from the provisions of this part shall be subject to local property taxation.

History.—Added by Stats. 1979, Ch. 1160, in effect January 1, 1979. Stats. 1980, Ch. 285, in effect June 30, 1980, operative July 1, 1980, deleted "for occupancy as a residence" after "Code" in subdivision (a).

Note.—Section 22 of Stats. 1980, Ch. 285, provided no payment by state to local governments because of this act.

10785. New mobilehomes sold and installed for occupancy. (a) The license fee imposed by this part shall not apply to any new mobilehome as defined in Sections 18008 and 18211 of the Health and Safety Code, which is sold and installed for occupancy, in accordance with Section 18613 of the Health and Safety Code, on or after July 1, 1980.

(b) Any new mobilehome exempted from the provisions of this part shall be subject to local property taxation.

History.—Added by Stats. 1979, Ch. 1180, in effect January 1, 1980. Stats. 1980, Ch. 285, in effect June 30, 1980, operative July 1, 1980, deleted "as a residence" after "occupancy" in subdivision (a).

Note.—Section 22 of Stats. 1980, Ch. 285, provided no payment by state to local governments because of this act.

10786. Fire-fighting vehicles owned by colleges. The license fee imposed by this part does not apply to any vehicle owned by an educational institution of collegiate grade, not conducted for profit, having an enrollment of 5,000 students or more and having an acreage of 5,000 acres or more, if such vehicle is used for fire-fighting purposes within the limits of the acreage of such institution, and is operated principally on roads owned by such institution.

History.—Added by Stats. 1949, p. 2279, in effect October 1, 1949. Stats. 1951, p. 2613, in effect September 22, 1951, substituted "5,000" for "seven thousand," substituted "an acreage of 5,000" for "a campus area of ten thousand," deleted "exclusively" after "vehicle is used" and substituted "acreage" for "campus area."

10787. Vehicles operated by the Civil Air Patrol. The license fee imposed by this part does not apply to any vehicle operated by the Civil Air Patrol, when the vehicle has been transferred to the Civil Air Patrol by the United States Government, or any agency thereof, if by federal regulation or directive the use of such vehicle is restricted to defined activities of the Civil Air Patrol, and if by federal regulation or directive the vehicle must be returned to the United States Government when no longer required or suited for use by the Civil Air Patrol.

History.—Added by Stats. 1959, p. 594, in effect January 30, 1959.

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10788. Mobilehomes owned by disabled veterans. (a) With respect to mobilehomes or trailer coaches subject to the provisions of this part, which are owned by, and which constitute the principal place of residence of, a disabled veteran who is blind in both eyes, has lost the use of two or more limbs, or is totally disabled as a result of injury or disease incurred in military service or the unmarried surviving spouse of such a veteran:

(1) The first twenty thousand dollars ($20,000) of the market value of the mobilehome or trailer coach shall be exempt from the license fee imposed by this part, or

(2) In the case of a disabled veteran or the unmarried surviving spouse whose household income, as defined in Section 20504, does not exceed the amounts specified in Section 20585, the first thirty thousand dollars ($30,000) of the market value of the mobilehome or trailer coach, shall be exempt from the license fee imposed by this part.

(b) For purposes of this section, "veteran" is defined as specified in subdivision (o) of Section 3 of Article XIII of the Constitution.

(c) No veteran shall be eligible for this exemption unless he or she was a resident of California at the time of his or her entry into military or naval service, or unless he or she was a resident of the state on November 7, 1972, if he or she is blind or has lost the use of two or more limbs, or on January 1, 1975, if he or she was totally disabled.

(d) As used in this section "mobile home" and "trailer coach" which are owned by the veteran includes:

(1) Property owned by the veteran with the veteran's spouse as a joint tenancy, tenancy in common or as community property;

(2) Property owned by the veteran or the veteran's spouse as separate property;

(3) Property owned with one or more other persons to the extent of the interest owned by the veteran, the veteran's spouse, or both the veteran and the veteran's spouse;

(4) Property owned by the veteran's unmarried surviving spouse with one or more other persons to the extent of the interest owned by the veteran's unmarried surviving spouse.

(e) For purposes of this section, "blind in both eyes" means having a visual acuity of 5/200 or less; "losing the use of a limb" means that the limb has been amputated or its use has been lost by reason of ankylosis, progressive muscular dystrophies, or paralysis; and "totally disabled" means that the United States Veterans Administration or the military service from which such veteran was discharged has rated the disability at 100 percent or has rated the disability compensation at 100 percent by reason of being unable to secure or follow a substantially gainful occupation.

History.—Added by Stats. 1980, Ch. 371, in effect July 9, 1980.

10789. Vehicles purchased with federal funds for specialized transportation. The license fee imposed by this part does not apply to the following:

(a) Any vehicle purchased with federal funds under the authority of paragraph (2) of subsection (b) of Section 1612 of Title 49 of the United States Code or Chapter 35 (commencing with Section 3000) of Title 42 of the United States Code for the purpose of providing specialized transportation services to senior citizens and handicapped persons by public and private nonprofit operators of specialized transportation services, including a consolidated transportation service agency designated pursuant to Section 15975 of the Government Code.

(b) Any vehicle operated solely for the purpose of providing specialized transportation services to senior citizens and persons with disabilities, by a nonprofit, public benefit consolidated transportation service agency designated under Section 15975 of the Government Code. The exemption provided by this subdivision shall not apply to more than 600 vehicles at any given time.

History.—Added by Stats. 1987, Ch. 673, in effect January 1, 1988. Stats. 1997, Ch. 667 (SB 812), in effect January 1, 1998, added "the following:" after "apply to" in the first sentence, created new subdivision (a) with the balance of the former first sentence commencing with "Any vehicle" and added subdivision (b).

Note.—Section 9 of Stats. 1987, Ch. 673 provided that no reimbursement is required by this act.

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