Thursday, December 27, 2012

Another city tax idea - vehicle license fee

San Francisco may again be a Bay Area trendsetter producing more revenue.  Maybe Pacifica needs a consultant to test this one. 

San Francisco Examiner/Will Reisman, staff writer, 12/17/12.  "Vehicle license fee would generate $70 M-plus for San Francisco."

Only 2%, you'll never notice
San Francisco lawmakers and agencies are working to put a vehicle license fee increase before voters in hopes of generating more than $70 million for city coffers.  California Senate Bill 1492 allows local municipalities to put on the ballot a fee of up to 2 percent of a vehicle’s value — the rate before former Gov. Arnold Schwarzenegger reduced it in 2004.

San Francisco’s Board of Supervisors will have to decide whether to put the fee increase before voters. It would then need a simple majority to pass, and would probably go on the November 2014 ballot.  The board has the option of setting the percentage fee for the initiative — anywhere from its current rate of 0.65 percent to the maximum of 2 percent. Increasing the rate to 2 percent would generate $72 million annually for The City’s general fund, said bill author state Sen. Mark Leno, D-San Francisco. A motorist with a vehicle valued at $15,000 would see his or her annual fee increase from $97.50 to $300 if the 2 percent rate is restored.

Leno noted that both the San Francisco Chamber of Commerce and Labor Council back the initiative, along with Mayor Ed Lee and the Board of Supervisors. In the past, similar initiatives have gained support here. In 2010, more than 58 percent of voters approved a $10 vehicle license fee increase.   Read article.

Posted by Kathy Meeh

1 comment:

Anonymous said...

I thought Prop 30 was going to bring in HUGE SURPLUS REVENUES??? Not enough, huh? Preparing for the fiscal cliff? All those rich govment employees will be coffin up 52% out of their wallets. LOL!