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Calif. Budget Deal Includes Increase In Vehicle Registration Fee

Neil Kremer / Flickr
 

Neil Kremer / Flickr

The state will charge Californians more to put their cars on the roads next year as part of the state budget deal reached by Gov. Jerry Brown and Democratic legislative leaders.

The agreement includes a $10 per year increase in the vehicle registration fee that funds the Department of Motor Vehicles and California Highway Patrol. It's effective April 1, 2017.

The governor proposed the hike in January (see bottom of pg 7 in the link). His Department of Finance says without the increase, the state would need to make "significant budgetary cuts" such as reducing the number of CHP officers on patrol and closing DMV field offices.

The vehicle fee, currently $43, would increase to $53. It would then continue to rise incrementally based on the California Consumer Price Index.

Unlike taxes and many fees, which require a two-thirds vote of the Legislature, this fee requires only a majority vote.

The budget deal was reached last week. It’s expected to get a vote on Wednesday.