Senator Leno Launches New Effort To Raise California Vehicle License Fee
SAN FRANCISCO (KCBS) - Counties would have the authority to increase the vehicle license fee to pay for local government services under new legislation by state Senator Mark Leno.
The bill is Leno's third attempt to restore fee rolled back when former Gov. Arnold Schwarzenegger first took office. Opponents argue the higher fee actually amounts to a disguised tax increase.
"It raises nobody's tax, let me be clear," Leno said Friday on the steps of San Francisco City Hall.
KCBS' Barbara Taylor Reports:
As the state budget crisis wore on, Gov. Schwarzenegger authorized a temporary increase in the vehicle license fee from .65 percent to the current 1.15 percent.
Under the new legislation, adding a local surcharge to the fee would require a two-thirds majority from the county board of supervisors and majority approval from voters.
Leno estimates $9 billion of the projected $26 billion deficit facing California over the next month could be closed if counties were allowed to raise the fee.
The higher fee could generate between $50 million and $75 million in San Francisco to pay for road work and Muni service that has been cut because of a $350 million budget shortfall, said Mayor Ed Lee.
"This effort in revitalizing the discussion around our vehicle license fee is going to be a very, very big help to our local economy," Lee said.
The San Francisco Chamber of Commerce endorsed the bill, said the organization's senior vice president, Jim Lazarus.
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