Car tax is latest idea to balance California budget

State lawmakers began moving toward a deal this week to close California's deficit with the help of steeper car fees that would cost many drivers hundreds of dollars annually, according to people involved in budget talks.

Under the plan, GOP lawmakers -- most of whom have signed anti-tax pledges -- would vote to triple the vehicle license fee that owners pay when they register their cars every year in exchange for a ballot measure that would impose rigid limits on future state spending. Motorists' annual license fees would rise from 0.65% of the value of their vehicles to 2%. For a car or truck valued at $25,000, the increase would be $336.

The higher fees would generate $6 billion annually, helping to fill a budget gap that is projected to reach nearly $28 billion over the next year and a half.

The proposal is being championed by incoming state Senate leader Darrell Steinberg (D-Sacramento). Democrats and advocates for the poor have opposed strict state spending limits, saying they would cripple government services.

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--Evan Halper

Comments

[nancy3]

my little car (worth $15,000 less than above-mentioned car) tripled, would cost me $375.00. where are you getting your information?

[black barack]

the democrats are going to bankrupt this state and make it fit only for illegals.

[Susan]

Lawmakers are at it again. Oblivious to what is going on in the economy. Unemployment is the highest it’s been in 7 years, foreclosures are up and investments are down. So what do these clueless people do, raise the car tax.

[JaneE]

The car tax should have been re-imposed years ago. How many times in how many ways does the state have to go into deficit before the sunset provision in the law is enforced? Two percent is not a large burden, especially when it goes down every year you have your car. Unless you couldn't afford the car in the first place. The people complaining about their thousand dollar car tax had to be driving 50 thousand dollar vehicles. And probably getting a new one every year. They didn't get much sympathy from me then, because my car was 8 years old, and the tax was 86 dollars before the rebate. Most of that was the standard fees.

[Ruby Jackson]

Instead of just raising the car tax, why doesn't the state implement an annual car inspection? That way, the state gets it's extra money, and the public gets cars on the road that are actually road-worthy. Plus, the public doesn't get dinged as hard on paying medical bills for people injured in accidents where there car doesn't have functioning seat belts or turn signals.

[David]

Raise taxes and put another burden on residents of this state? The federal and state governments are out of control and have no idea the anger building in it's citizens! Government workers are simply paid too much and have benefits and pension plans that private citizens could only dream about. It's time to put a stop to this insanity! If they pass this car registration tax hike then I propose we stand up and show them our anger. We take our vehicles to every state government office and clog the roads so no one may leave or enter. We are the people of this great State and it is time our voices be heard!!!

[dave]

How about we CUT SPENDING instead. The people aren't making any money, so there is no money coming in as taxes. So what does the government do? Rape the people EVEN MORE, WHILE THEY ARE ALREADY SUFFERING!!!

So let me get this straight, no one is making money, so you are going to steal what little we have left so that you can continue to fund your bloated beaurocracy? How about cutting spending, then cutting some more, then cutting some more, then give us a TAX DECREASE instead of a tax raise.

[Linda Winsh]

I am looking at my DVM registration bills. I am already paying extra $15 registration fee this year. My registration has gone up $10 plus extra $4 for the license(only this part might be deductible) while the value of the car lessened.

On a 3 years old light truck (Ford Ranger), I pay $41 registration fee(it was registered 3 years ago) and $91 license fee.

The purchasing price of the truck was $14,000 in 2005. As the truck is worth about $10,000 I pay now 0.91% in the license fee alone.Add to it OC fee of $11 and registration fee of $41 and I am paying the full 2%.In purchasing year the price of the license and the fee was $250, 1.5%

Unless I own a magical truck which gets newer every year, I was overcharged then and am even now.

[Allstar]

Any tax that penalizes the use of cars is positive for the environment as it encourages people to think twice about driving and it helps build the necessary tax base. People seem to forget that driving is a luxury, not a right! Another solution is to add an increased tax to gas so you pay less if you drive less, making it your choice.

[Chris]

Car tax! Try putting it on my car while I drive to Colorado with the rest of the productive people in this state.

[Jeffy]

This story is a test balloon. No republican is on board. The problems in CA are such that they can not tax their way out. They must do something that is not in the DNA of pols: cut back on their little fiefdoms. There will be much screeching and every park and library will be closed, and as much pain as possible brought to bear on the taxpayers for not giving ever more. This time the cupboard is bare. Nothing more can be extracted without causing the host economy to death sprial. We are about to witness the disintegration of a massive institution, the State of California.

[robb wallace]

The only reason I voted for the govenor was because of the reduction in the car tax..Whers's he think the moneys coming from..Il will lrent ny place out and move out of state . once again the have's have blown it and know what the have nots to bail them out. Im sure a few hundred bucks to the legistalors who have numerous cars is no big deal, but to the AVERAGE , what's left of the middle class thats a big chunk of change , and i certainly hope the people get out and openly oppose this.

[Glenn / CA]

People, In California, out of every dollar of the states grose product, 48 cents has something to do with a tax of some kind. Taxes are at a record high and they want more? Cut spending. And quit trying to scare everyone by cutting fire, police, schools. Cut people who are hear illegal off from the government teat, and you can save, at a minimum, $15 billion per year in just California. Enough is enough!!!!!

[Bill]

It is sad to have people elected to office whom should not be there. ( ya you arnie and pals).
I have very simple ways to balance this budget.
1. Eliminate the child tax credit for the state. People already get $1000.00 per child from the feds. They wont miss that little money the state provides at that time.
2. Raise the car tax less than 1/4 percent.

3. Then provide a stimulus for new car buyers by waiving the car tax for the first year. But first collect the funds and provide a rebate check to prevent dealers from simply raising the price. That will also help as most people will spend the check when they receive it.

4. Finally, Add a five cent tax to unleaded fuel anytime the price is under $2.50 a gallon. Remove that tax anytime fuel is above $2.50 a gallon. Right now no one would feel that nickel and the money is guaranteed as more people are jumping back into there cars.

These are just ideas. We need leaders who are imaginative. Guess we will have to wait a couple years as arnie and friends just dont get it.