California drivers will soon have to shell out more money to register a car. That's because the vehicle license fee is going up starting May 19. Some residents are finding out the hard way that the fee is based on the value of your car.
Governor Schwarzenegger's campaign promise flew out the window April 1. But even if you aren't in the market for a new car, you're still not off the hook. Starting May 19, vehicle licensing fees are going up half a percentage point.
For example, take one of our news vehicles, a 2005 Ford Expedition. Last year the licensing fee was $112, but after May 19, the fee will go up to $198.
It's all a part of the state's plan to help lessen the $42 billion deficit. The increased licensing fee, along with the one percent sales tax and personal income tax increase will create about $12.5 billion in revenue. But for residents it just means more money out of pocket.
California has to get back in the black somehow. I don't want to leave, so I will pay the price," a car owner said.
The income and sales tax increase across the state is the first of its kind in 17 years.
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