Assemblyman takes issue with license fee increase

Paul Clinton

Assemblyman John Campbell has teamed up with a leading taxpayer group

to roll back Gov. Gray Davis’ tripling of the vehicle license fee.

Campbell and the Howard Jarvis Taxpayers Assn. have pledged to

fight the Davis administration’s decision, on Friday, to trigger a

clause in a 1998 bill that resulted in a $4-billion tax increase.

Campbell, on Thursday, released an opinion he had obtained from

the state’s nonpartisan legislative counsel deeming the hike illegal.

Campbell, who represents Newport Beach, asked for the opinion in an

April 4 letter.

“I can’t believe the governor and his subordinates dismissed

legislative counsel’s opinion and still raised the car tax,” Campbell

said. “By triggering this tax, they are only adding more uncertainty

to budget negotiations and to Wall Street.”

Attorneys with Howard Jarvis have promised to challenge the move

in court.

In the opinion, the legislature’s legal arm said the vehicle tax

could only be raised under three conditions. State Controller Steve

Westly must authorize the move, which can only come if the state

“runs out of cash,” Campbell said. Also, Westly must re-evaluate the

state’s fiscal situation each month to determine what rate to use in

setting the vehicle fee.

In 1998, the legislature passed a law that changed the way the

state collects fees from registration of cars, trucks and other

vehicles.

Prior to that time, the state collected 2% of the assessed value

of the vehicle, revenue that was, in turn, handed over to local

governments. The 1998 bill lowered the registration fees to 0.67% of

the assessed value, resulting in a rebate to drivers. Included in

that bill was a trigger clause that allows the governor to return the

fee to its pre-1998 level.

In Orange County, where the average vehicle is valued at $30,000,

drivers now paying about $200 will see their fee rise to $600.

Drivers registering their vehicles in October will be the first to

pay the increased fee.

On Thursday, Department of Finance Director Steve Peace sent a

letter to the Department of Motor Vehicles informing the agency that

the trigger had been pulled.

Since then, Campbell’s office has been flooded with e-mails and

calls protesting the move.

* PAUL CLINTON covers the environment, business and politics. He

may be reached at (949) 764-4330 or by e-mail at

[email protected].