Thursday, January 6, 2011

$295 due for California Vehicle Registration Fees?!

This is pissing me off.  Talk about highway robbery. In one sentence they tell us our fees are supposed to DECREASE each year and in the next they tell us they are actually going to INCREASE, which they have. At whom do we throw rotten eggs? Where do we protest? How do we vote to get this reversed!? Who can afford this?
Q What is Vehicle License Fee (VLF) and how is the amount determined?
A The VLF was established by the Legislature in 1935 in lieu of a property tax on vehicles. The formula for VLF assessment established by the Legislature is based upon the purchase price of the vehicle or the value of the vehicle when acquired. The VLF decreases with each renewal for the first 11 years. The VLF is part of the total fees due upon initial and annual vehicle registration renewal. This amount will temporarily increase to 1.15 percent for most vehicles effective May 19, 2009.

Q Where does the money go?
A The DMV returns almost all vehicle license fee revenue to the cities and counties. For more details on how your VLF money is used, contact your local city or county government officials.
The VLF revenue of 0.65 percent will continue to be distributed to cities and counties and deposited into the Local Revenue Account and Motor Vehicle License Fee Account in the Transportation Tax Fund. The VLF increase of 0.50 percent will be allocated as follows:

  • 0.35 percent to the General Fund

  • 0.15 percent transferred to the Local Safety and Protection Account established in the Transportation Tax Fund.

Q Why is the vehicle license fee (VLF) increasing?
A The VLF increase is part of the budget plan designed to reduce California’s $42 billion deficit. The new budget includes spending reductions, revenue increases, economic stimulus, and government efficiency.
Q How much is the VLF increase?
A The current VLF rate is 0.65 percent and will increase to 1.15 percent for most vehicles, an increase of 0.5 percent.
Q When does the increase go into effect?
A The increase does not apply to fees which become due prior to May 19, 2009, whether for original registration or renewal, regardless of when the fees are paid.

Q Which vehicles are affected by the change?
A Most vehicles with fees due on or after May 19, 2009, are subject to the VLF increase. This includes automobiles; commercial vehicles with a declared gross operating weight under 10,001 pounds, motorcycles, and trailer coaches. ...

Q Can I pay my fees early to avoid the increase?
A No. The increase is based on the vehicle registration expiration date. Affected vehicles with a fee due date of May 19, 2009, or later will pay the increase regardless of when payment is received.
Q How long does the increase last?
A The increase will be through June 30, 2011, but may be extended to
June 30, 2013.

via DMV

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