 |
 -0 |
 |
|
||||||||
 |
||||||||
 |
||||||||
|
||||||||
|
||||||||
 |
|
Tripling of Car Fee Is Expected
Q: How much? A: It depends. The increase will add $136 to the fee that average vehicle owners already pay. Some owners will pay more, some will pay less. Before the increase, the fee amounted to 0.65% of a vehicle's estimated value, which is calculated on the basis of the purchase price. As the value declines each year, so does the fee.
Q: Hasn't the fee been cut in recent years? A: Yes. The fee originally was 2% on the vehicle's value. But in 1998, Gov. Pete Wilson and the Legislature agreed to a series of reductions, with the provision that the fee would return to the original level if state revenues ever ran dry.
Q: Where does the money go? A: Historically, the revenue has gone to cities and counties. But when the fee was reduced in 1998, the state began reimbursing local governments for the lost revenue. Now, raising the fees allows the state to keep the reimbursement money and apply it to California's flagging general fund.
Source: California Legislative Analyst's Office Los Angeles Times |
|
|
