Government Finance and Operations 08/24/2012
Sales and Use Tax
AB 2618 (Ma) – Support
As Enrolled on August 16, 2012
AB 2618, by Assembly Member Fiona Ma, would ensure that
purchasers of cars at auction pay the appropriate amount of sales
or use tax on those transactions.
Too frequently, unscrupulous Californians avoid paying taxes on
cars purchased at auction, especially salvaged auto auctions, by
telling the auctioneer that they will be reselling the vehicles
later, then never doing so. Many of these vehicles are either
never subsequently registered with DMV, or if they are they
report a value lower than the actual sale price.
AB 2618 would curb this fraud by requiring those buyers claiming
intent to resell to be licensed dealers, dismantlers, repair
dealers, or scrap metal processors.
Both houses have passed AB 2618 and it is now on its way to the
Governor’s office.
Elections
AB 1466 (Assembly Budget Committee) – Pending
SB 1017 (Senate Budget Committee) – Pending
As Amended on August 22, 2012
These twin bills, AB 1466 and SB 1017, would require county
election officials to count ballots they receive within three
days of Election Day and that are either postmarked on or before
Election Day or are accompanied by a signed declaration from the
voter that the ballot was mailed before 8pm on Election Day.
“Postmark plus,” as this policy is known, is aimed at the problem
caused by the closure of some US Post Office facilities. However,
many pieces of mail, as much as fifty to seventy percent in some
areas, arrive with the postmark either illegible or missing
entirely. This raises concerns about the bill possibly having the
opposite of its intended effect. It is too close to the election
for local election officials to redesign and in many cases
reprint voting materials to provide a space for a signed
declaration, and no requirement for them to do so.
The language was amended into these bills this week, and were
scheduled to be heard in committee Thursday afternoon; however,
that hearing was delayed after the Secretary of State and others
raised concerns and it appears that this language will not be
moving forward this session.
SB 1331 (Kehoe) – Support
As Enrolled on August 22, 2012
SB 1331, by Senator Kehoe, would create an independent
redistricting commission to draw the supervisorial districts in
the County of San Diego.
The citizens of San Diego County and that county’s Board of
Supervisors have requests an independent redistricting process
for their county. The commission contemplated by SB 1331 would
ensure transparency by subjecting the commission to the Brown Act
and requiring public hearings throughout the county. It requires
the county to provide financial support and would be made up of
retired judges.
Both houses have passed SB 1331 and it will now make its way to
the Governor.
Validations
SB 192 (Senate Governance and Finance Committee) – Support
As Enrolled on August 23, 2012
SB 192, by the Senate Governance and Finance Committee, will
retroactively cure the minor errors and omissions that public
officials make, giving investors confidence in public agencies’
securities and therefore lead to lower interest rates for state
and local bonds. It does not correct fraud, corruption, or
unconstitutional acts. This sort of “validating act” is
traditionally noncontroversial and receives “aye” votes from all
legislators, since with their passage everyone wins. Last year
the validating acts, including SB 192, got caught up in the
uncertainty around redevelopment agency dissolution.
SB 192 has overcome those difficulties, passed both houses of the
Legislature, and is on its way to the Governor’s desk.
Local Revenue
SB 954 (Liu) – Support
As Enrolled on August 22, 2012
SB 954, by Senator Carol Liu, would authorize the State
Controller to, at the request of a county or city, offset any
payments due to people from the unclaimed property held by the
state in order to pay debts those people owe the county or
city.
This authority already exists for offsetting tax refunds and
lottery winnings. The bill would provide an appeal process for
people who believe the billing was in error, ensuring the process
is fair to all parties. All current protections for those billed
would be retained from the current process.
SB 954 extends a proven, efficient system for recovery of money
due to local agencies, and in doing so will ensure millions of
dollars owed to counties and cities are paid.
Both houses have passed SB 954 and it is on its way to the
Governor for his consideration.