The California Car Tax
Okay, since the California Recall Election was nationwide news, most of you know that the impetus for it was due to the public’s displeasure with how the State budget was handled as well as the “car tax,” a three times increase in motor vehicle registration. Trust me, both annoyed the shit out of me and the timing of the “car tax” was extrememely poor. As most Californians did, I figured the increase was an idea dreamed up by soon-to-be-former Governor Gray Davis as a way of making up budget shortfalls. Absolutely wrong. Charles sent me this article from a Redding, CA newspaper which illustrates where the car tax actually came from, former Governor Pete Wilson, a man who I always disliked and is now a member of Schwarzenegger’s staff. Here’s the most interesting bit of info about the car tax you may not have read before:
Republicans say the Davis administration illegally increased the fee to raise $4.2 billion to help plug a gaping hole in the state budget. Davis countered that state law passed by the Legislature and signed by his predecessor, Gov. Pete Wilson, in 1998 required the fee to return to 2 percent of a vehicle’s value when the budget was in the red.Four dozen GOP legislators have challenged the increase in court, along with the Howard Jarvis Taxpayers Association. They contend the tax increase is illegal because only a two-thirds vote of the Legislature can raise taxes.
Starting today, California car owners will be required to pay 2 percent of each of their vehicles’ value to the Department of Motor Vehicles when they renew registration. Over the past five years, California motorists have seen their fees decline by two-thirds.
When Wilson approved a bill lowering the car tax five years ago, the state treasury was flush with cash, thanks to the dot-com boom. Most vehicle owners received rebate checks in the mail and quickly became accustomed to paying lower fees to register about 30.8 million cars, trucks, trailers and motorcycles each year.
But lawmakers and Wilson envisioned a time when the treasury would run dry and the “temporary rebate” would end.
That end came earlier this year, when a $38 billion shortfall threatened cuts in basic government services unless lawmakers found other funds. Davis’ finance chief, Steve Peace, announced in June that the state would restore the car tax to 1998 levels, citing the so-called trigger in the Wilson administration law.
Thanks Gov. Wilson for fucking our shit up!
While I’m not saying I support the car tax as a means to help fix the budget problems the state has, it’s just another example of how poorly the Davis administration dealt with the media. I’ve done some research and found a hand full of other instances where the history of this is mentioned, but clearly the Republican’s did a far better job of spinning the story, especially Tom McClintock.
The State Democratic Party of California has had it’s head up it’s ass for years. They better fucking wake up.
