Wednesday, January 13, 2010

A 954% California DMV fee increase?! + How to calculate % increase

My registration feels for my 2008 Toyota Prius just shot up to $327. Last year my California DMV reg fee was $31 in 2009. It was $33.33 in 2006 on a different car. . What the heck? I think that's a 954% increase.
How to calculate percentage increase, Decrease or Difference
I want the % increase from 31 to 327.  To calculate the percent difference,  follow these steps:
A) Find the difference between two numbers, in this case,  subtract 31 from 327.  We get 327 - 31 = 296
B) Next take the difference, 296, and divide by the original number: 296/31 = 9.548
C) Lastly, multiply the number above by 100: 9.548*100 = 954.8%

I'm lucky I can pay this if I must, but it is quite an unpleasant surprise. I know people who've lost their jobs and can't pay their car registration fees. In that case I hear the CA DMV will waive the late fees, but they won't let you make payments. Here is what my fee increase was supposed to be:
In an effort to help California motorists find out how the increased Vehicle License Fee (VLF) will affect the registration renewal for their vehicles, DMV will modify the online fee calculator to reflect the increase which will take effect on May 19, 2009.

All vehicles with a registration renewal date of May 19 and thereafter will be affected by the increase from 0.65% to 1.15% of the value of the vehicle.  The calculator will be modified to reflect the change 60 days prior to the increase.  The department will also mail registration renewal forms to customers approximately 60 days in advance of the renewal date.

The online fee calculator increases customer convenience and saves time making it a popular feature available at www.dmv.ca.gov.  It allows customers to compute not only the new VLF, but all other fees due for vehicle registration renewals and used vehicle purchases as well as fees due on new and out of state vehicle registrations.

The calculator is also user friendly. Vehicle owners need only to provide the license plate and vehicle identification numbers, county of registration, and zip code.  The calculator will then display the amount of fees due to DMV, along with any penalties, transfer costs and use tax if applicable.

The VLF was established in 1935. The funds collected are directed to local government and the General Fund for use by local government and public safety programs.  The VLF portion of the registration is tax deductible for those itemizing deductions in state and federal income tax returns. As prescribed by Section 10752 of the Revenue and Taxation Code, the VLF is based on the market value of the vehicle as determined by DMV. In the case of a new vehicle, the VLF is based by the purchase price of the vehicle on the date of purchase.

No comments: