Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2013
 

Revenue and Taxation Code

Other Taxes

Part 5. Vehicle License Fee

CHAPTER 5. Distribution of Proceeds


Chapter 5. Distribution of Proceeds

11000. Transfer to Transportation Tax Fund. [Repealed by Stats. 2004, Ch. 211 (SB 1096), in effect August 5, 2004.]

11000.1. Transfer to Transportation Tax Fund. (a) The Controller shall do both of the following:

(1) Transfer from the General Fund to the Motor Vehicle License Fee Account in the Transportation Tax Fund, in accordance with the information received from the department pursuant to subdivision (b), an amount that is equal to 75.67 percent of the offsets that are determined by the department to be subject to Sections 9551.1 and 9554.1 of the Vehicle Code.

(2) Transfer from the General Fund to the Local Revenue Fund, in accordance with the information received from the department pursuant to subdivision (b), an amount that is equal to 24.33 percent of the offsets that are determined by the department to be subject to Sections 9551.1 and 9554.1 of the Vehicle Code.

(b) For purposes of transfers by the Controller pursuant to paragraphs (1) and (2) of subdivision (a), the department shall provide the Controller with daily estimates of the amounts required to be transferred pursuant to each of those paragraphs, and shall, no less frequently than monthly, notify the Controller of amounts of adjustments to those estimates that reflect completed registrations. On or before June 30, 1999, the department shall notify the Controller of the amounts of any additional adjustments to General Fund transfers required by each of those paragraphs that are required to accurately reflect the total amount of offsets that are subject to Section 9551.1 of the Vehicle Code.

(c) For purposes of Section 15 of Article XI of the California Constitution, the General Fund revenues that are transferred as required by paragraph (1) of subdivision (a) shall be allocated in the same manner as revenue derived from taxes imposed pursuant to this part.

(d) For purposes of Article 1 (commencing with Section 25350) of Chapter 5 of Part 2 of Division 2 of Title 3 of the Government Code, Section 11003, and Chapter 6 (commencing with Section 17600) of Part 5 of Division 9 of the Welfare and Institutions Code, the General Fund transfer amounts specified in paragraphs (1) and (2) of subdivision (a) are hereby deemed to be vehicle license fee proceeds and vehicle license fee revenues. These General Fund transfer amounts are subject to the same pledges, liens and encumbrances, and priorities set forth in Section 25350 and following of, Section 53584 and following of, and Section 5450 and following of, the Government Code.

(e) (1) This section does not apply to transfers from the General Fund with respect to any offsets that are subject to Section 9551.2 of the Vehicle Code.

(2) Nothing in the act adding this section amends or intends to amend or impair Section 25350 and following of, or Section 53584 and following of, the Government Code, or any other statute dealing with the interception of funds.

(f) This section is repealed on January 1, 2000.

History.—-Added by Stats. 1998, Ch. 322 (AB 2797), in effect August 20, 1998.

Back to top


11001. Fees collected; report of and deposit in fund. (a) All money collected by the department for accepted applications under this part shall be reported monthly to the Controller and, at the same time, deposited in the State Treasury to the credit of the Motor Vehicle License Fee Account in the Transportation Tax Fund.

Any reference in any law or regulation to the Motor Vehicle License Fee Fund shall be deemed to refer to the Motor Vehicle License Fee Account in the Transportation Tax Fund.

(b) The amount of any penalties collected by the department, as provided in Sections 9553 and 9554 of the Vehicle Code and Sections 10770 and 10854 of this code, shall, for purposes of subdivision (a), be deemed to be a percentage of the total fees allocated under this section and under Section 42270 of the Vehicle Code equal to that percentage of the weight fee, registration fee, and vehicle license fee obtained when applying the total of these fees collected, excluding use tax, against the individual weight fees, registration fees, and vehicle license fees collected on each application. Penalties which cannot be allocated in accordance with this subdivision shall be allocated according to subdivision (c).

(c) The amount of any penalties collected by the department, as provided in Sections 9553 and 9554 of the Vehicle Code and Sections 10770 and 10854 of this code which cannot be allocated pursuant to subdivision (b), shall, for purposes of subdivision (a), be deemed to be a percentage of the total fees allocated under this section and under Section 42270 of the Vehicle Code equal to that percentage of the ratio based on the fees previously allocated under this section and under Section 42270 of the Vehicle code in the fiscal year preceding the calendar year for which the penalties are to be allocated. That ratio shall be reevaluated periodically and shall be adjusted to reflect any change in the fee structure that may be provided in this code or in Division 3 (commencing with Section 4000) of the Vehicle Code.

History.—Added by Stats. 1974, Ch. 1330, p. 2891, in effect September 26, 1974, operative March 8, 1976. Stats. 1984, Ch. 123, in effect January 1, 1985, deleted "of this section" after "subdivision (a)", and substituted "weight fee, . . . each application" for "ratio based on the fees previously allocated under this section and under Section 42270 of the Vehicle Code in the fiscal year preceding the calendar year for which the penalties are to be allocated" after "percentage of the" in the first sentence of the first paragraph of subdivision (b); substituted the second sentence thereof for the former second sentence which provided that "such ratio shall be reevaluated periodically and shall be adjusted to reflect any change in the fee structure that may be provided in this code or in Division 3 (commencing with Section 4000) of the Vehicle Code; deleted the former second paragraph of subdivision (b); and added subdivision (c).

Back to top


11001.5. Fees collected; deposit in fund. (a) (1) Notwithstanding Section 11001, and except as provided in paragraph (2) and in subdivisions (b) and (d), 24.33 percent, and on and after July 1, 2004, 74.9 percent, of the moneys collected by the department under this part shall be reported monthly to the Controller, and at the same time, deposited in the State Treasury to the credit of the Local Revenue Fund, as established pursuant to Section 17600 of the Welfare and Institutions Code. All other moneys collected by the department under this part shall continue to be deposited to the credit of the Motor Vehicle License Fee Account in the Transportation Tax Fund and first allocated to the County of Orange as provided in subdivision (a) of Section 11005 and as necessary for the service of indebtedness as pledged by Sections 25350.6 and 53585.1 of the Government Code and in accordance with written instructions provided by the Controller under Sections 25350.7, 25350.9, and 53585.1 of the Government Code, and the balance shall be allocated to each city and city and county as otherwise provided by law.

(2) For the period beginning on and after July 1, 2003, and ending on February 29, 2004, the Controller shall deposit an amount equal to 28.07 percent of the moneys collected by the department under this part in the State Treasury to the credit of the Local Revenue Fund. All other moneys collected by the department under this part shall continue to be deposited to the credit of the Motor Vehicle License Fee Account in the Transportation Tax Fund and allocated to each city, county, and city and county as otherwise provided by law.

(b) (1) Notwithstanding Section 11001, net funds collected as a result of procedures developed for greater compliance with vehicle license fee laws in order to increase the amount of vehicle license fee collections shall be reported monthly to the Controller, and at the same time, deposited in the State Treasury to the credit of the Vehicle License Collection Account of the Local Revenue Fund as established pursuant to Section 17600 of the Welfare and Institutions Code. All revenues in excess of fourteen million dollars ($14,000,000) in the 2004–05 fiscal year and in any fiscal year thereafter shall be allocated to cities, counties, and cities and counties as follows:

(A) (i) Fifty percent shall be paid to the cities and cities and counties of this state in the proportion that the population of each city or city and county bears to the total population of all cities and cities and counties in this state, as determined by the population research unit of the Department of Finance. For purposes of this subparagraph, the population of each city or city and county is that population determined by the last federal decennial or special census, or a subsequent census validated by the population research unit or subsequent estimate prepared pursuant to Section 2107.2 of the Streets and Highways Code.

(ii) In the case of a city incorporated subsequent to the last federal census, or a subsequent census validated by the population research unit, the population research unit shall determine the population of the city. In the case of unincorporated territory annexed to a city subsequent to the last federal census, or a subsequent census validated by the population research unit, the population research unit shall determine the population of the annexed territory by the use of any federal decennial or special census, or estimate prepared pursuant to Section 2107.2 of the Streets and Highways Code. In the case of the consolidation of one city with another subsequent to the last federal census, or a subsequent census validated by the population research unit, the population of the consolidated city, for the purpose of this subparagraph, is the aggregate population of the respective cities as determined by the last federal census, or a subsequent census or estimate validated by the population research unit.

(B) Fifty percent shall be paid to the counties and cities and counties in the proportion that the population of each county or city and county bears to the total population of all counties and cities and counties, as determined by the population research unit. For purposes of this subparagraph, the population of each county or city and county is that determined by the last federal census, or subsequent census validated by the population research unit, or as determined by Section 11005.6 of the Revenue and Taxation Code.

(2) The amendments made to this section by the act that added this paragraph are operative upon the enactment of that act. However, the amendments made by the act that added this paragraph apply to revenues in the Vehicle License Collection Account in excess of fourteen million dollars ($14,000,000) in the 2004–05 fiscal year and any fiscal year thereafter.

(c) Notwithstanding Section 11001, 25.72 percent of the moneys collected by the department on or after August 1, 1991, and before August 1, 1992, under this part shall be reported monthly to the Controller, and at the same time, deposited in the State Treasury to the credit of the Local Revenue Fund, as established pursuant to Section 17600 of the Welfare and Institutions Code. All other moneys collected by the department under this part shall continue to be deposited to the credit of the Motor Vehicle License Fee Account in the Transportation Tax Fund and allocated to each city, county, and city and county as otherwise provided by law.

(d) Notwithstanding any other provision of law, both of the following apply:

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

(2) It is the intent of the Legislature that the total amount deposited by the Controller in the State Treasury to the credit of the Local Revenue Fund for the 2003–04 fiscal year be equal to the total amount that would have been deposited to the credit of the Local Revenue Fund if paragraph (1) of subdivision (a) was applied during that entire fiscal year. The department shall calculate and notify the Controller of the adjustment amounts that are required by this paragraph to be deposited in the State Treasury to the credit of the Local Revenue Fund. The amounts deposited in the State Treasury to the credit of the Local Revenue Fund pursuant to this paragraph shall be deemed to have been deposited during the 2003–04 fiscal year.

(e) This section does not amend nor is it intended to amend or impair Section 25350 and following of, Section 53584 and following of, the Government Code, or any other statute dealing with the interception of funds.

History.—Added by Stats. 1991, Ch. 87, in effect June 30, 1991, operative August 1, 1991. Stats. 1993, Ch. 788, in effect October 4, 1993, deleted "Vehicle License Fee Account of the" after "credit of the" in the first sentences of subdivisions (a) and (c); added new subdivision (b); relettered former subdivisions (b) and (c) as (c) and (d), respectively; and added "License" after "Motor Vehicle" in subdivision (c). Stats. 2003, Ch. 225 (AB 1752), in effect August 11, 2003, designated the first paragraph of subdivision (a) as paragraph (1) and added "in paragraph (2) and" after "as provided in" in the first sentence therein and added paragraph (2) thereto. 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. Amended by Stats. 2004, Ch. 610 (AB 2115), in effect September 20, 2004. Amended by Stats. 2006, Ch. 78 (AB 1805), in effect July 18, 2006.

Note.—Section 13, Stats. 1991, Ch. 88, clarified that the provisions of Section 11001.5 shall become operative August 1, 1991.

Back to top


11002. Appropriations from fund. The money in the Motor Vehicle License Fee Fund is hereby appropriated as provided in this chapter.

11003. Appropriation for use of department. The amount appropriated by the Legislature for the use of the Department of Motor Vehicles and the Franchise Tax Board for the enforcement of this part shall be transferred from the Motor Vehicle License Fee Account in the Transportation Tax Fund to the Motor Vehicle Account in the State Transportation Fund. That amount shall be determined so that the appropriate costs for registration and motor vehicle license fee activities are apportioned between the recipients of revenues in proportion to the revenues that would have been received by those recipients if the total fee imposed under this part was 2 percent of the market value of a vehicle.

History.—The original section provided for appropriations from the License Fee Fund for the use of the Department of Motor Vehicles in an amount determined by the Department of Finance to be necessary for the enforcement of this part but not in excess of 3 percent of the money paid into the fund. Stats. 1945, p. 1968, in effect June 25, 1945, substituted provisions for transfers to the Motor Vehicle Fund during the months of January, April, July, and October of one-quarter of the moneys appropriated by the Legislature from the License Fee Fund for the support of the Department of Motor Vehicles for the fiscal year in which such distribution is made, and added a second paragraph relieving the License Fee Fund from the application of Section 11006 of the Government Code. Stats. 1947, p. 2648, in effect September 19, 1947, reworded the first paragraph (deleting the reference to transfers in specific months) and deleted the second paragraph referring to Section 11006 of the Government Code. Stats. 1971, p. 2431, operative January 1, 1972, substantially revised this section. Stats. 1980, Ch. 650, in effect July 20, 1980, operative July 1, 1982, added the second sentence. Stats. 1994, Ch. 1243, in effect September 30, 1994, but operative January 1, 1994, added "and the Franchise Tax Board" after "Department of Motor Vehicles" in the first sentence; substituted "That" for "Such" before "amount" and substituted "those" for "such" after "revenues received by" in the second sentence. Amended by Stats. 2004, Ch. 211 (SB 1096), in effect August 5, 2004.

Back to top


11003.1. Reports of trailer coach registrations. [Repealed by Stats. 1992, Ch. 699, in effect September 15, 1992.]

11003.1. Deposit of license fees. All license fees on trailer coaches levied and collected by the Department of Motor Vehicles pursuant to Section 10751 shall be deposited in the State Treasury to the credit of the General Fund.

History.—Added by Stats. 1992, Ch. 699, in effect September 15, 1992. ,

11003.2. Transmission of report to assessor. [Repealed by Stats. 1992, Ch. 699, in effect September 15, 1992.]

11003.3. Disbursement of money collected on trailer coaches. [Repealed by Stats. 1992, Ch. 699, in effect September 15, 1992.]

11003.4. Distribution within county. [Repealed by Stats. 1992, Ch. 699, in effect September 15, 1992.]

11004. Appropriation for payment of bonds. On or before the first day of December of each fiscal year, on order of the Controller, there shall be transferred from the Motor Vehicle License Fee Fund to the General Fund and set apart sufficient money in the amount of the semiannual interest necessary to be paid during the following month of January on bonds of the State issued under:

(a) The "State Highways Act," approved by the Governor March 22, 1909, and by a majority of the electors at the general election held November 8, 1910.

(b) The "State Highways Act of 1915," approved by the Governor May 20, 1915, and by a majority of the electors at the general election held November 7, 1916.

(c) Section 2 of Article XVI of the Constitution as approved by a majority of the electors at a special election held July 1, 1919.

(d) Section 3 of Article XVI of the Constitution, as approved by a majority of the electors at the general election held November 2, 1920.

On or before the first day of June of each fiscal year, on order of the Controller, there shall be transferred from the Motor Vehicle License Fee Fund to the General Fund and set apart sufficient money in the amount of the semiannual interest and the annual redemption charges necessary to be paid during the following month of July on the bonds referred to in this section.

History.—Stats. 1949, p. 460, in effect October 1, 1946, added "On or before the first day of December of each fiscal year," "from the Motor Vehicle License Fee Fund," substituted "semiannual" for "principal and," substituted "necessary" for "paid or necessarily," and substituted "the following month of January" for "each fiscal year" in the first paragraph and added the last paragraph.

Back to top


11004.5. Appropriation for Highway Patrol. The Controller shall deduct from the allocations he would otherwise make pursuant to Section 11005, the amounts chargeable to each city, county, and city and county under Section 40516 of the Vehicle Code, and transfer that amount to the Motor Vehicle Fund in augmentation of the funds available for the support of the Department of California Highway Patrol.

The Controller shall make such deductions at the time of the first allocation which occurs after the filing with him of the charges certified by the Commissioner of the California Highway Patrol. If the amount of the deduction for any city, county, or city and county exceeds the amount of the allocation for such city, county, or city and county, the balance of the deduction in excess of the amount of the apportionment shall be carried over and applied to the next succeeding allocation or allocations until exhausted.

History.—Added by Stats. 1950, p. 360, in effect July 4, 1950. Stats. 1959, p. 1793, in effect September 18, 1959, substituted "Section 40516 of the Vehicle Code" for "Vehicle Code Section 139.44."

11005. Disbursement of balance of fund. [Repealed by Stats. 2004, Ch. 211 (SB 1096), in effect August 5, 2004.]

11005. Disbursement of balance of fund. After payment of refunds therefrom and after making the deductions authorized by Section 11003 and reserving the amount determined necessary by the Pooled Money Investment Board to meet the transfers ordered or proposed to be ordered pursuant to Section 16310 of the Government Code, commencing with the 2004–05 fiscal year, the balance of all motor vehicle license fees and any other money appropriated by law for expenditure pursuant to this section and deposited to the credit of the Motor Vehicle License Fee Account in the Transportation Tax Fund and remaining unexpended therein at the close of business on the last day of the calendar month, shall be allocated by the Controller by the 10th day of the following month in accordance with the following:

(a) First, to the County of Orange. For the 2004–05 fiscal year, that county shall be allocated fifty-four million dollars ($54,000,000) in monthly installments. For the 2005–06 fiscal year and each fiscal year thereafter, that county shall receive, in monthly installments, an amount equal to the amount allocated under this section for the prior fiscal year, adjusted for the percentage change in the amount of revenues credited to the Motor Vehicle License Fee Account in the Transportation Tax Fund from the revenues credited to that account in the prior fiscal year. Moneys allocated to the County of Orange under this subdivision shall be used first for the service of indebtedness as provided in paragraph (1) of subdivision (a) of Section 11001.5. Any amounts in excess of the amount required for this service of indebtedness may be used by that county for any lawful purpose.

(b) Second, to each city, the population of which is determined under Section 11005.3 on August 5, 2004, in an amount equal to the additional amount of vehicle license fee revenue, including offset transfers, that would be allocated to that city under Sections 11000 and 11005, as those sections read on January 1, 2004, as a result of that city's population being determined under subdivision (a) or (b) of Section 11005.3.

(c) Third, to each city that was incorporated from an unincorporated territory after August 5, 2004, in an amount equal to the product of the following two amounts:

(1) The quotient derived from the following fraction:

(A) The numerator is the product of the following two amounts:

(i) Fifty dollars ($50) per year.

(ii) The fraction determined as the total amount of vehicle license fee revenue collected during the most recent fiscal year divided by the total amount of vehicle license fee revenue collected during the 2004–05 fiscal year.

(B) The denominator is the fraction determined as the actual population, as defined in subdivision (e) of Section 11005.3, of all cities during the most recent fiscal year, divided by the actual population, as defined in subdivision (e) of Section 11005.3, of all cities in the 2004–05 fiscal year.

(2) The city's population determined in accordance with Section 11005.3.

(d) Fourth, to each city that was incorporated before August 5, 2004, in an amount equal to the product of the following two amounts:

(1) The quotient derived from the following fraction:

(A) The numerator is the product of the following two amounts:

(i) Fifty dollars ($50) per year.

(ii) The fraction determined as the total amount of vehicle license fee revenue collected during the most recent fiscal year divided by the total amount of vehicle license fee revenue collected during the 2004–05 fiscal year.

(B) The denominator is the fraction determined as the actual population, as defined in subdivision (e) of Section 11005.3, of all cities during the most recent fiscal year, divided by the actual population, as defined in subdivision (e) of Section 11005.3, of all cities in the 2004–05 fiscal year.

(2) The actual population, as defined in subdivision (e) of Section 11005.3, residing in areas annexed after August 5, 2004, as of the date of annexation.

(e) Fifth, to the cities and cities and counties of this state in the proportion that the population of each city or city and county bears to the total population of all cities and cities and counties in this state, as determined by the Demographic Research Unit of the Department of Finance. For the purpose of this subdivision, the population of each city or city and county shall be determined in accordance with Section 11005.3.

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. Amended by Stats. 2008, Ch. 375 (SB 301), in effect January 1, 2009.

Back to top


11005.1. Disbursements by city and county. (a) Any city or city and county may expend any money received by it pursuant to Section 11005 for:

(1) Planning, acquiring, constructing, operating, or maintaining a rapid transit system itself or jointly with one or more other cities, counties, cities and counties, or public rapid transit districts, agencies, or authorities; or

(2) Making contributions to any public rapid transit district, agency, or authority exercising jurisdiction within the city or city and county for use in planning, acquiring, constructing, operating, or maintaining a rapid transit system.

(b) A county may expend such money in making contributions to any city or public rapid transit district, agency, or authority within the county for use in planning, acquiring, constructing, operating, or maintaining a rapid transit system.

History.—Added by Stats. 1963, p. 3809, in effect September 20, 1963.

11005.2. Restrictions on allocations. Notwithstanding subdivision (b) of Section 11005, the Controller shall not allocate any revenue pursuant to paragraph (1) of that subdivision to any city which receives revenue pursuant to Section 97.3 or pursuant to Section 56842.2 of the Government Code.

History.—Added by Stats. 1984, Ch. 447, in effect July 16, 1984. Stats. 1987, Ch. 1210, in effect January 1, 1988, added "or pursuant to Section 56842.2 of the Government Code" after "Section 97.3".

Note.—See Note following Section 95.

11005.3. Newly incorporated city; determination of population. (a) In the case of a city that incorporated on or after January 1, 1987, and before August 5, 2004, the Controller shall determine that the population of the city for its first 10 full fiscal years, and any portion of the first year in which the incorporation is effective if less than a full fiscal year, is the greater of either:

(1) The number of registered voters in the city multiplied by three. The number of registered voters shall be calculated as of the effective date of the incorporation of the city.

(2) The actual population, as defined in subdivision (e).

(b) In the case of a city that incorporated on or after January 1, 1987, and before August 5, 2004, and for which the application for incorporation was filed with the executive officer of the local agency formation commission pursuant to subdivision (a) of Section 56828 of the Government Code on or after January 1, 1991, the Controller shall determine that the population of the city for its first seven full fiscal years, and any portion of the first year in which the incorporation is effective if less than a full fiscal year, is the greater of either:

(1) The number of registered voters in the city multiplied by three. The number of registered voters shall be calculated as of the effective date of the incorporation of the city.

(2) The actual population, as defined in subdivision (e).

(c) In the case of a city that was incorporated from unincorporated territory after August 5, 2004, the Controller shall determine the population of the city as follows:

(1) For its first 12 months, 150 percent of the city's actual population.

(2) For its 13th through 24th months, 140 percent of the city's actual population.

(3) For its 25th through 36th months, 130 percent of the city's actual population.

(4) For its 37th through 48th months, 120 percent of the city's actual population.

(5) For its 49th through 60th months, 110 percent of the city's actual population.

(6) After its 60th month, the city's actual population.

(d) For purposes of this section, "actual population" means the population determined by the last federal decennial or special census, or a subsequent census validated by the Demographic Research Unit of the Department of Finance or subsequent estimate prepared pursuant to Section 2107.2 of the Streets and Highways Code.

(e) In the case of unincorporated territory being annexed to a city, during the 10-year, seven-year, or five-year period following incorporation, as the case may be, subsequent to the last federal census, or a subsequent census validated by the Demographic Research Unit of the Department of Finance, the unit shall determine the population of the annexed territory by the use of any federal decennial or special census or any estimate prepared pursuant to Section 2107.2 of the Streets and Highways Code. The population of the annexed territory as determined by the Demographic Research Unit shall be added to the city's population as previously determined by the Controller pursuant to paragraph (1) or (2) of subdivision (a), paragraph (1) or (2) of subdivision (b), or subdivision (c), as applicable.

(f) After the 10-year, seven-year, or five-year period following incorporation, as the case may be, the Controller shall determine the population of the city as the city's actual population, as defined in subdivision (d).

(g) The amendments made to this section by the act adding this subdivision shall not apply with respect to either of the following:

(1) Any city that has adopted an ordinance or resolution, approved a ballot measure, or is subject to a consent decree or court order, that annually limits the number of housing units that may be constructed within the city.

(2) Any city that has not prepared and adopted a housing element in compliance with Section 65585 of the Government Code.

(h) This section shall become operative July 1, 1991.

History.—Added by Stats. 1986, Ch. 1242, in effect January 1, 1987, operative July 1, 1990. Stats. 1988, Ch. 367, in effect January 1, 1989, substituted "1991" for "1990" in subdivision (b). Stats. 1990, Ch. 101, in effect January 1, 1991, deleted "(a) Notwithstanding subdivision (c) of Section 11005, in the case of a city which incorporated on or after January 1, 1987, the Controller shall determine the population of the city for its first eight full fiscal years, and any portion of the first year in which the incorporation is effective, if less than a full fiscal year, by multiplying the number of registered voters in the city by three. Thereafter, the Controller shall determine the population of the city pursuant to subdivision (c) of Section 11005" and added subdivisions (a), (b), (c), and (d), and relettered former subdivision (b) as (e). Stats. 1991, Ch. 1091, in effect January 1, 1992, deleted "Multiplying" after "(1)", added "multiplied" after "city", in paragraph (1) of subdivision (a); deleted "Multiplying" after "(1)", added "multiplied" after "city" in paragraph (1) of subdivision (b); added "year" after "eight-" in subdivisions (c) and (d). Stats. 1997, Ch. 583 (AB 1226), in effect January 1, 1998, substituted "10" for "eight" after "for its first" in the first sentence of subdivision (a); substituted "seven" for "five" after "for its first" in the first sentence of subdivision (b); substituted "10" for "eight" after "during the" and substituted "seven" for "five" after "-year or" in the first sentence and added the second sentence in subdivision (c); substituted "10" for "eight" after "during the" and substituted "seven" for "five" after "-year or" in subdivision (d); added new subdivision (e) and relettered former subdivision (e) as (f). Amended by Stats. 2006, Ch. 556 (AB 1602), in effect January 1, 2007. Amended by Stats. 2008, Ch. 375 (SB 301), in effect January 1, 2009.

Back to top


11005.4. 1993–94 fiscal-year allocations. Notwithstanding Section 11005, for the 1993–94 fiscal year only, after payment of refunds therefrom and after making the deductions authorized by Section 11003 and reserving the amount determined necessary by the Pooled Money Investment Board to meet the transfers ordered or proposed to be ordered pursuant to Section 16310 of the Government Code, the Controller shall, in addition to making any allocations required by Section 11005, allocate, in accordance with the procedures applicable to those moneys allocated pursuant to subdivisions (c) and (d) of Section 11005, the amount of one hundred thirty million dollars ($130,000,000) as follows:

(a) Ninety million dollars ($90,000,000) to cities in proportion to the total property tax revenue allocation reduction for each city as a result of Sections 97.02 and 97.035, as determined by the Director of Finance.

(b) Forty million dollars ($40,000,000) to counties and cities and counties in proportion to the total property tax revenue allocation reduction for each county or city and county as a result of Sections 97.02 and 97.035, as determined by the Director of Finance.

History.—Added by Stats. 1993, Ch. 68, in effect June 30, 1993.

11005.5. Payments to inactive cities. The payments provided under Section 11005 shall not be made to any incorporated city which has not held an election of municipal officers within a period of 10 years preceding the date of such payment. Payments heretofore accumulated on behalf of any such city shall be apportioned to all other cities in the manner provided by Section 11005.

History.—Added by Stats. 1953, p. 2183, in effect September 9, 1953.

11005.6. Estimates of increased population. Any city, county, or city and county may apply to the population research unit of the Department of Finance to estimate its population. The department may make the estimate if in the opinion of the department there is available adequate information upon which to base the estimate. Not less than 25 days nor more than 30 days after the completion of the estimate, the Department of Finance shall file a certified copy thereof with the Controller if the estimate is greater than the current certified population. Such a certification may be made once each fiscal year.

All payments under Section 11005 for any allocation subsequent to the filing of the estimate shall be based upon the population so estimated until a subsequent certification is made by the Department of Finance or a subsequent federal decennial census is made.

Population changes based on a federal or state special census or estimate validated by the Department of Finance shall be accepted by the Controller only if certified to him or her at the request of the Department of Finance. The request shall be made only if the census or estimate is greater than the current certified population and shall become effective on the first day of the month following receipt of the certification.

The Department of Finance may assess a reasonable charge, not to exceed the actual cost thereof, for the preparation of population estimates pursuant to this section, which is a proper charge against the city, county, or city and county applying therefor. The amount received shall be deposited in the State Treasury as a reimbursement to be credited to the appropriation from which the expenditure is made.

As of May 1, 1988 any population estimate prepared by the Department of Finance pursuant to Section 2227 may be used for all purposes of this section unless a written request not to certify is received by the department from the city, city and county, or county within 25 days of completion of the estimate.

History.—Added by Stats. 1959, p. 2816, in effect September 18, 1959. Stats. 1967, p. 3092, in effect November 8, 1967, substituted "Each year except the year of a" for "During the year beginning January 1, 1965, and every fifth year following the year of the last" federal decennial census, and added the requirement for an enumeration, in the first sentence of the first paragraph; and deleted language requiring a population increase of 5 percent or more from the first sentence of the second paragraph. Stats. 1969, p. 1181, in effect November 10, 1969, substituted "Once each calendar year" for "Each year" in the first sentence of the first paragraph. Stats. 1970, p. 24, in effect March 16, 1970, deleted "except the year of a federal decennial census" after "Once each calendar year" in the first sentence of the first paragraph. Stats. 1973, Ch. 358, p. 797, in effect August 31, 1973, added last paragraph. Stats. 1975, Ch. 1186, p. 2923, in effect January 1, 1976, substituted "Any" for "Once each calendar year, any", substituted "which has had a census taken" for "whose population has been increased substantially since the last federal census and which has held an enumeration", substituted "United States" for "federal", and substituted "its population" for "the increase in population" in the first sentence, added "and if requested to do so by the county or city and county," after "estimate," in the third sentence, and added the fourth sentence of the first paragraph; added the balance of the first sentence after "estimated", and deleted the former second sentence of the second paragraph; substituted the third paragraph for the former third paragraph; and substituted "the Revenue and Taxation Code" for "this code", and added the balance of the first sentence of the fifth paragraph after "this section". Stats. 1984, Ch. 711, in effect January 1, 1985, added "city," before "county" and deleted "which has had a census taken within the five-year period preceding application under the supervision of either the United States Bureau of the Census of the Department of Finance" after "and county" in the first sentence of the first paragraph. Stats. 1986, Ch. 982, effective January 1, 1987, added "the population research unit of" after "apply to" in the first sentence, deleted "the department and" after "with" in the third sentence, and substituted "fiscal" for "calendar" after "each" in the fourth sentence of the first paragraph; deleted "of the Revenue and Taxation code" after "Section 11005", and deleted "such time as" after "until" in the second paragraph; added "or her" after "him", and substituted "the" for "such" after "receipt of" in the third paragraph; and deleted "of the Revenue and Taxation Code" after "Section 2227", and substituted "," for "or" after "city" in the fifth paragraph. Stats. 1988, Ch. 154, in effect June 10, 1988, added a comma after "county" in the first sentence of the first and fourth paragraphs; substituted "not less than 25 days nor more than 30 days after the" for "Upon", deleted "and if requested to do so by the city, county or city and county," before "the Department", added "if the estimate is greater than the current certified population" after "Controller" in the second sentence of the first paragraph; added "or state" after "federal", deleted "a subsequent census or" before "estimate validated", substituted "Department of . . . certified population" for "city, city and county, or county for which the census or estimate was made" in the third paragraph; added "As of May 1, 1988" before "any population", deleted "the provisions of" before "Section 2227", substituted "unless" for "if" before "a written", substituted "not to certify" for "for certification to the Controller", added "by the department" after "received", substituted "25" for "45" before "days" in the fifth paragraph.

Back to top


11005.7. Adjustments to reimbursement for fiscal year 1981–82; cities. [Repealed by Stats. 1984, Ch. 448, in effect July 16, 1984.]

11005.7. Allocations. [Repealed by Stats. 2004, Ch. 211 (SB 1096), in effect August 5, 2004.]

11005.75. Adjustments to reimbursement for fiscal year 1982–83; cities. [Repealed by Stats. 1984, Ch. 448, in effect July 16, 1984.]

11005.8. Adjustments to reimbursement for fiscal year 1981–82; counties and cities and counties. [Repealed by Stats. 1984, Ch. 448, in effect July 16, 1984.]

11005.85. Adjustments to reimbursement for fiscal year 1982–83; counties and cities and counties. [Repealed by Stats. 1984, Ch. 448, in effect July 16, 1984.]

11005.86. "1982–83 Assessed Value." [Repealed by Stats. 1984, Ch. 448, in effect July 16, 1984.]

11006. Recalculations; commercial vehicles. (a) Commencing on December 31, 2001, the Controller, in consultation with the Department of Motor Vehicles and the Department of Finance, shall recalculate the distribution of the amount of motor vehicle license fees paid by commercial vehicles that are subject to Section 9400.1 of the Vehicle Code and transfer those sums from the General Fund as follows in the following order:

(1) An amount sufficient to cover all allocations and interception of funds associated with all pledges, liens, encumbrances and priorities as set forth in Section 25350.6 of the Government Code, which shall be transferred so as to pay that allocation.

(2) An amount sufficient to continue allocations to the State Treasury to the credit of the Vehicle License Fee Account of the Local Revenue Fund, as established pursuant to Section 17600 of the Welfare and Institutions Code, which would be in the same amount had the amendments made by the act that added this section to Section 10752 of the Revenue and Taxation Code not been enacted, which shall be deposited in the State Treasury to the credit of the Vehicle License Fee Account Local the Local Revenue Fund, as established pursuant to Section 17600 of the Welfare and Institutions Code.

(3) An amount sufficient to continue allocations to the State Treasury to the credit of the Vehicle License Fee Growth Account of the Local Revenue Fund, as established pursuant to Section 176004 of the Welfare and Institutions Code, which would be in the same amount had the amendments made by the act that added this section to Section 10752 of the Revenue and Taxation Code not been enacted, which shall be deposited in the State Treasury to the credit of the Vehicle License Fee Growth Account of the Local Revenue Fund, as established pursuant to Section 176004 of the Welfare and Institutions Code.

(4) An amount sufficient to cover all allocations and interception of funds associated with all pledges, liens, encumbrances and priorities, other than those referred to in paragraph (1), as set forth in Section 25350 and following of, Section 53584 and following of, 5450 and following of, the Government Code, which shall be transferred so as to pay those allocations.

(b) The balance of any funds not otherwise allocated pursuant to subdivision (a) shall continue to be deposited to the credit of the Motor Vehicle License Fee Account in the Transportation Tax Fund and allocated to each city, county, and city and county as otherwise provided by law.

(c) In enacting paragraphs (1) and (4) of subdivision (a), the Legislature declares that paragraphs (1) and (4) of subdivision (a), shall not be construed to obligate the State of California to make any payment to a city, city and county, or county from the Motor Vehicle License Fee Account in the Transportation Tax Fund in any amount or pursuant to any particular allocation formula, or to make any other payment to a city, city and county, or county, including, but not limited to, any payment in satisfaction of any debt or liability incurred or so guaranteed if the State of California had not so bound itself prior to the enactment of this section.

History.—Added by Stats. 2000, Ch. 861 (SB 2084) in effect September 29, 2000. Stats. 2003, Ch. 471 (SB 1062), in effect January 1, 2004, added "from the General Fund" after "those sums" in the first sentence of subdivision (a), added "by the act that added this section" after "amendments made", deleted "made by the act that added this section had" after "Taxation Code", and deleted "Local Revenue Fund" after "Fee Amount" in the first sentence of paragraph (2) thereof, and substituted "Section 17600" for "Section 17604" after "pursuant to", added "by the act that added this section" after "amendments made", deleted "made by the act that added this section had" after "Revenue and Taxation Code", and substituted "Section 17600" for "Section 17604" after "pursuant to" in the first sentence of paragraph (3) thereof.

Back to top