McClintock bill would reinstate car tax cut








McClintock bill would reinstate car tax cut



A bipartisan measure jointly sponsored by state Sen. Joe Dunn (D-Garden Grove) and state Sen. Tom McClintock (R-Thousand Oaks) has passed the Senate Revenue and Taxation Committee by a vote of 5-0. The measure, SenateBill 22, will give motorists an immediate cut in their car tax.


In 1998 legislation was passed lowering the car tax (vehicle license fee) each year until it was cut 67.5 percent.


In 2000, rather than simply allowing the lower rate to take effect, the legislature changed the cut to a rebate check. This change meant that motorists would have to pay a higher amount of car tax, while at the same time allowing the governor to send out rebate checks costing the state $45 million for two years. The interest lost to California motorists is $30 million.


SB 22 would replace the rebate check system and lower the car tax rate paid by motorists. It will next be heard in the Senate Appropriations Committee.


The bill is supported by Cal Tax, California Reform Association, Automobile Club of Southern and Northern California, United Chambers of Commerce of the San Fernando Valley, and the Howard Jarvis Taxpayers Association.





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