Auto Club: Legislators Urged Not to Make Motorists Pay Disproportionate Taxes

    LOS ANGELES--Jan. 29, 2003--The Automobile Club of Southern California today strongly urged legislators not to triple the state's Vehicle License Fee (VLF).
    Proposals to increase the tax have passed the state assembly and are to be considered in the state senate tomorrow.
    "Motorists should pay their fair share of taxes, but they should not be singled out for a disproportionate tax burden as a quick fix for the current budget crisis," said Alice Bisno, vice president of legislative and regulatory affairs.
    Current proposals would raise the VLF to 2% of the assessed value of a vehicle. All other real and personal property is taxed at a 1% rate. The current VLF rate is .65%. The Auto Club worked to eliminate inequities in the tax and supported reductions to the current level.
    In a letter sent to legislators earlier this week, the Auto Club voiced its opposition to increasing the VLF to 2%. The Club also said that any tax increases of the magnitude proposed for the VLF should be subject to a two-thirds vote of the legislature.
    "The proposed legislation would not only seek to undo Vehicle License Fee tax relief, but allow the legislature to avoid the normal vote requirement for general tax increases by referring responsibility to the Department of Finance," said Bisno.
    Auto Club Research shows the following increases if the VLF is raised:

Vehicle/a              Price    Current Rate     1%        2%
                                   (.65%)

2001 Mercury Grand    $25,360       $132        $203      $304
 Marquis

2000 Ford Explorer    $18,000       $ 82        $126      $252

1998 Honda Accord     $19,485       $ 63        $ 97      $196


(a) Chart assumes only one owner of vehicle and that the vehicle was
    purchased in the year stated.

    "These kind of increases underscore the reasons why any Vehicle License Fee increase needs to be part of the legislative process," said Bisno. "Legislators need to weigh the impact on their constituents."
    The Automobile Club of Southern California, the largest affiliate of the AAA, has been serving members since 1900. Today, the Auto Club's members benefit by roadside assistance, insurance products and services, travel agency, financial products, automotive pricing, buying and financing programs, automotive testing and analysis, trip planning services and highway and transportation safety programs.
    Information about these products and services is available on the Auto Club's Web site at www.aaa-calif.com.