Car Tax Increase Takes Effect

If you buy a car or have to renew your registration, get ready for it to cost a lot more.

A boost in fees kicked in Tuesday, two months after lawmakers passed it.  The car tax is going up to more than one percent of a vehicle's value, up from about .6 percent.

That means the cost of the vehicle license on a car or truck valued at $25,000 will rise by $125.  Fees on a $30,000 car will increase by about $150.

The higher car tax will end in 2011 unless voters pass Prop 1-A, which would extend the fee hike until 2013.

The increase is expected to raise $1.6 billion over the next year.

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