cuda-t2.jpgSupervisors held off until next week any action on a ballot measure that would ask voters to pay anywhere from $90 to $120 more per year to register (bicycle coalition’s note: evil, rapacious death machines!) motor vehicles in San Francisco.

Talk for a local vehicle licensing fee has been ongoing while lawmakers in Sacramento discuss a return to the “2 percent of vehicle value fee,” which statewide vehicle owners haven’t had to worry about since 2003. The local legislation would see vehicle fees return to that level, but local lawmakers will wait for Sacramento’s move before making their own.

Vehicle fees have long been lower than that. A suggestion to return to the 2 percent of value fee was, you might recall, was one of the nails in then-Gov. Gray Davis’s coffin, and what helped nudge Gov. Arnold Schwarzenegger into his current career.

While it would help balance the ledgers next fiscal year, a local vehicle fee could have a negative economic impact in the long run, according to a report issued by city economist Dr. Ted Egan.

Vehicle owners, facing the higher tax, would be inclined to ask for higher wages or pay less in rent or mortgage, he said. Or perhaps charge their kids for rides to school?

Please make sure your comment adheres to our comment policy. If it doesn't, it may be deleted. Repeat violations may cause us to revoke your commenting privileges. No one wants that!
  • Jim

    Believe that the added fee would be slightly less than 1% (.85% actually) of your car’s fair market value, as determined by the DMV. So that could be hundreds of dollars extra for a year for a luxury car or twelve bucks for aging Honda Civic from the 1990’s. It would be written as a catch-all, so SF would get more money if the state VLF drops down from 1.15% back to .65% as is scheduled to happen in 2011 or, if extended, 2013.

    So San Francisco motorists would pay a annual 2% ad volerem tax no matter what – CA would take what it takes (and send a bit of it our way) and then SF would take the remainder.

    Until G. Davis futzed with it, people had no problem paying 2% per year going all the way back to 1948 or so.

  • Jim

    Believe that the added fee would be slightly less than 1% (.85% actually) of your car’s fair market value, as determined by the DMV. So that could be hundreds of dollars extra for a year for a luxury car or twelve bucks for aging Honda Civic from the 1990’s. It would be written as a catch-all, so SF would get more money if the state VLF drops down from 1.15% back to .65% as is scheduled to happen in 2011 or, if extended, 2013.

    So San Francisco motorists would pay a annual 2% ad volerem tax no matter what – CA would take what it takes (and send a bit of it our way) and then SF would take the remainder.

    Until G. Davis futzed with it, people had no problem paying 2% per year going all the way back to 1948 or so.