According to the California Department of Motor Vehicles, the Vehicle License Fee (VLF) that the state charges car owners is slated to nearly double on May 19, 2009. The VLF is a value-based tax charged to vehicle owners when they renew their vehicle registration with the DMV each year.
Currently the VLF is set at 0.65 percent of the purchase price of the vehicle (65 cents per 100 dollars of the sale price). New legislation pushed through to combat California’s budget deficit will increase this fee to 1.15 percent, or $1.15 per 100 dollars of the purchase price of the vehicle. The increase is earmarked for the state’s general fund with a portion going towards the Transportation Tax Fund.
The fee increase will target certain smaller vehicle classes—namely automobiles, motorcycles, trailer coaches and commercial vehicles with a gross weight under 10,000 pounds. Commercial vehicles weighing more than 10,000 pounds and vehicles currently exempt from paying VLF will be exempt from the increase.
Please keep in mind that the fee is based on the due date of your vehicle’s California registration fees. Paying your fees early will not exempt you from the increase. On the bright side, paying your fees late will not make you liable for the increased amount, provided your registration fee due date is before May 19, 2009.
The increased VLF fees are scheduled to remain in place until June 2011.
If you have any questions or concerns about California vehicle laws, please contact the Law Offices of Howard D. Silver. Call (855) 341-2611 for a free consultation with a skilled California lemon law attorney.