OHMVR Program to lose gas tax funding; registration fees to increase

The California OHMVR Program is facing a serious threat of having its funding diverted. The OHMVR Program is user funded through registration fees and gas tax funds for fuel used in OHV recreation.

The gas tax funding is targeted to be diverted away from the OHMVR Program. The result will be NO funds to support the SVRAs and many trails on BLM and Forest Service managed lands.

Below is an analysis of AB-1 and SB-1, two bill targeting the gas tax.

Note the INCREASE of the existing fuel tax by $0.12 cents.  In addition, REGISTRATION fees on every vehicle register in the state are proposed to for 143% increase.

The California Board of Equalization has reviewed both bills. AB-1 and SB-1 have similar provisions with slight variations. Below is a brief summary of the two bills:

Senate Bill 1 (SB-1)

Among its provisions, if passed, SB-1 will impose an additional $0.12 per gallon gasoline tax staggered over three years, change the diesel fuel base rate to $0.13 per gallon, and imposes an additional $0.20 per gallon diesel fuel surtax. The bill will also eliminate the fuel tax swap revenue neutrality adjustment, and increase the existing additional sales and use surtax on diesel fuel from 1.75% to 5.75%. This bill also adds an inflation adjustment for the additional 5.75% sales and use surtax on diesel fuel and for the fuel tax rates, as specified, beginning July 1, 2020, and every three years thereafter. Additionally, the bill adds Chapter 2 (commencing with Section 2030) to Division 3 of the Streets and Highway Code to among other things, establish the Road Maintenance and Rehabilitation Account, which accounts for the deposit of the additional $0.12 per gallon gasoline excise taxes imposed by this bill. The additional gasoline excise tax funds would be used to address deferred maintenance on state highways and local streets and roads. The bill allocates the additional $0.20 per gallon diesel fuel excise taxes to the Trade Corridors Improvement Fund. A summary of the impacts is available in the BOE’s bill analysis.

Assembly Bill 1 (AB-1)

Among its provisions, if passed, AB-1 will impose an additional $0.12 per gallon gasoline tax, changes the diesel fuel base rate to $0.13 per gallon and will impose an additional $0.20 per gallon diesel fuel surtax. The bill will also eliminate the fuel tax swap revenue neutrality adjustment and increase the existing additional sales and use surtax on diesel fuel from 1.75% to 5.25%. This bill also adds an inflation adjustment for the additional 5.25% sales and use surtax on diesel fuel and for the fuel tax rates, as specified, beginning July 1, 2019, and every three years thereafter. Additionally, the bill adds Chapter 2 (commencing with Section 2030) to Division 3 of the Streets and Highway Code to among other things, establish the Road Maintenance and Rehabilitation Account, which accounts for the deposit of the additional $0.12 per gallon gasoline excise taxes imposed by this bill. The additional gasoline excise tax funds would be used to address deferred maintenance on state highways and local streets and roads. The bill allocates the additional $0.20 per gallon diesel fuel excise taxes to the Trade Corridors Improvement Fund. A summary of the impacts is available in the BOE’s bill analysis.

READ THIS!!!!

Both bills' stated purpose is to create a long-term funding source for the state, counties, and cities to address transportation and road maintenance needs. Both bills specify where the new additional taxes will go, as outlined in the summaries above, and amend Motor Vehicle Fuel Tax Law (MVFTL) Sections 8352.4, 8352.5 and 8352.6 to reallocate the money currently being transferred from the specified accounts (Harbors and Watercraft Revolving Fund, Agriculture Fund, Off-Highway Vehicle Fund) to the General Fund to the Highway Users Tax Account for distribution pursuant to Section 2103.1 of the Streets and Highways Code beginning July 1, 2017.

We need you to GET INVOLVED and contact your elected representative about this travesty!!

The following will guide you through the steps to locate contact information for your elected Assemble Member and State Senator.

 

Go To:   http://findyourrep.legislature.ca.gov/

Enter your address, city, and zip code

Click “Locate”

Your Assembly Member and State Senator will be displayed with a link to their respective websites.

On the website will be a “Contact” link with the ability to send an email to your representative.

Please cut and paste the below information and send an email to your elected representative.

Most Legislators maintain a social media (Facebook) presence.

And, cut and paste the below information and post it to the Facebook Wall of your elected representative.

 

*************************

Dear (Assembly Member or Senator)

I am a constituent of yours and would like to introduce you to the California OHMVR program.  It is very important to residents of your district, including residents throughout the state.

The current California Off-Highway Motor Vehicle Recreation Program (OHMVR) has been in existence since 1971 (Chappi-Z’Berg Act), has been a great success, and hailed as a national model providing for a statewide system of managed OHV recreational opportunities. The OHMVR Program assures that quality recreational opportunities remain available for future generations by providing education, conservation, and enforcement efforts that balance OHV recreation impact with programs that conserve and protect cultural and natural resources.

The program is funded by user license/registration fees and gas tax based on fuel used off-highway for recreation purposes. Unlike State Parks, NO GENERAL FUNDS are appropriated for the OHMVR program.  The State Parks transformation process and the sunset of the OHMVR program are the perfect storm that opponents of OHV are taking advantage to kill the program, along with the discussion of transportation infrastructure.

I am concerned with the language of AB-1 and SB-1. Both redirect the gas tax funds away from the OHMVR Program.  Motorized recreation opportunities throughout the state are important sources of income for rural communities, as well as an important social benefit for residents, and draw many visitors from other states.  

Both bills stated purpose is to create a long-term funding source for the state, counties, and cities to address transportation and road maintenance needs. Both bills specify where the new additional taxes will go, as outlined in the summaries above, and amend Motor Vehicle Fuel Tax Law (MVFTL) Sections 8352.4, 8352.5 and 8352.6 to reallocate the money currently being transferred from the specified accounts (Harbors and Watercraft Revolving Fund, Agriculture Fund, Off-Highway Vehicle Fund) to the General Fund to the Highway Users Tax Account for distribution pursuant to Section 2103.1 of the Streets and Highways Code beginning July 1, 2017.

I hope you will be a strong voice for OHMVR Program and the OHMVR Division of State Parks. 

I would be happy to meet with you or a staff member in the future to discuss the OHMVR program and its future and importance. You may also reach out to our legislative advocate, Terry McHale with Arron Reed and Associates.

I look forward to your response; 

(NAME)
(City), (State)  (Zip Code)

Tags: ohmvr program

  • Created on .
California Four Wheel Drive Association logo
8120 36th Ave.
Sacramento, CA 95824

© 1959-2017 All rights reserved.
California Four Wheel Drive Association, Inc.

Contact

  • Phone:
    916-381-8300 800-4X4-FUNN
  • E-Mail:
    office@cal4wheel.com