California drivers pay $12 more to register vehicles; tax rates roll back to 2009 levels

  • Published
  • By Diane Betzler
  • Staff Writer
EDWARDS AIR FORCE BASE, Calif. --  Because of recent changes in state law, California vehicle owners will pay $12 more to register their vehicles, but vehicle tax rates will roll back to lower 2009 levels.

Additionally, there has been a temporary change to the way the Department of Motor Vehicles will be handling vehicle registration renewal fees. The change in the law makes it impossible to send out advance notice 60 days before registration renewal is due, as is the common practice for the DMV.

So, effective immediately, all California vehicle registrations due from July 1 to Aug. 31, 2011, will not receive advance notice. Instead, renewal notices will be mailed on or near the vehicle registration expiration date. Because of this, California residents whose vehicle registration is due in July or August, will be given a 30-day grace period from the registration expiration date before late penalties will be assessed.

The change is the result of California Senate Bill 94, which was signed into law by Governor Jerry Brown, May 4, and raises the cost for Californians to register their vehicles by $12 a year.

DMV officials also were waiting to learn whether vehicle registration taxes were to be lowered or raised, based on pending legislation to prevent lowering the tax rate.

"The legislation had until midnight, June 30, to prevent lowering the tax on California vehicle registration fees," said Armando Botello, information officer at DMV headquarters in Sacramento.

Because that legislation failed, the tax increase that took place two years ago has been rolled back to the rate at the beginning of 2009, and Californians are back to paying the lower .65 percent tax rate. From 2010 to July 1, 2011, the vehicle tax rate was 1.15 percent.

Based on the rolled back rate of .65 percent of the vehicle's value, licensing fees will be reduced 10 percent each succeeding year until the fee reaches $75, which will be the lowest amount assessed.

Mr. Botello said the new procedure regarding the notices and the 30-day grace period for penalties will be used for July and August registration renewals only. After that, the 60-day advance notice will resume.