Car Registration Charges – What Are They?

Proposition 101 would set your car registration licensing fee at $10 per year. The ownership tax would be reduced over the course of four years to $2 for new cars and $1 for used cars. There would no longer be taxes on car rentals and leases. There would be a sales tax exemption for $10,000 of a vehicle’s cost. The state income tax rate would drop from 4.63 percent to 4.5 percent and eventually to 3.5 percent. All telecommunication taxes and charges, except for 911 charges, would be eliminated.A no vote doesn’t change anything.

We did some checking and found that a reduction in vehicle registration would also impact school districts, cities, counties, law enforcement, libraries and other special districts.A driver’s vehicle registration covers the license fee, the road and bridge fee and an ownership tax.The road and bridge fee was added in 2009 as part of the FASTER bill passed by the state legislature. In July 2009, the vehicle registration fee for an average car went up $32 because of the bill that created a new fee to pay for road and bridge repair. In July 2010, the fee for an average car went up another $4.50, for a total of $36.50. In July 2011, it will go up another $4.50, making the fee $41.The ownership tax makes up the biggest chunk of the registration. The tax is determined based on the age of the vehicle and the county where it needs to be registered. The ownership tax gets divided up much like a property tax, with money going to the local schools.