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Vehicle registration fees double in May

Car owners face more expenses as California attempts to raise funds

By Tara Werner

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Published: Monday, March 9, 2009

Updated: Sunday, September 13, 2009

   Santa Ana College student Diego Gonzalez, who owns a 1998 Ford Explorer uses his car to commute to school and a job, is feeling the economic crunch.

    He recently had his work hours reduced, making it difficult to pay for his books. Knowing his annual car registration fees will soon double, he is now thinking about what else he can possibly do to cut back. “It sucks. I think it’s a bunch of BS. But I’m still going to pay it because I need my car,”
Diego said.

   The higher vehicle registration fee, which is based on a formula, effectively doubles what a car owner will pay. Gov. Arnold Schwarzenegger seeks to fill part of the budget gap with this increase, which will officially, yet temporarily, increase effective May 19, 2009. If registration is due after this date it may not be paid early to avoid the higher rate, according to the California Department of Motor Vehicles Web site. The increase is projected to last until June 30, 2011 but may be extended until June 30, 2013.

   Previously, Gov. Gray Davis, in his battle to fix a $34.6 billion budget deficit, called for higher registration fees, leading to his recall and election of the current governor. Once elected, Gov. Schwarzenegger’s first act was to overturn the jump registration fees.

   It is now five years later, and another budget crisis led the governor to up the fee, though still at a lower rate than Davis’ plan.

   Approximately 31,000 students are enrolled at SAC. Many depend on cars to get from home to college and work, while others use public transportation. At least half purchased permits to park on campus, according to Martha Ramirez of SAC’s public affairs and government relations office.

   The hike in vehicle fees comes at a unique time in our nation’s economy, with the Big Three automakers in trouble. With car sales plummeting, young car buyers in California will have a tougher decision to face as fees increase. Gonzales was thinking about purchasing a newer car soon, but now says he will most likely choose a car a few years older to keep the costs down.

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