Car Tax Hike Takes Drivers for a Ride

If you buy a car or have to renew your registration, get ready for it to cost a lot more, starting on Tuesday.
   
The boost in fees is kicking in two months after state lawmakers voted for the increase. It will now cost nearly twice as much as it used to for a registration sticker.
   
The Lawsons, who live in Spring Valley, got their bill a few weeks ago.

"It was 400 and something dollars -- I can't remember specifically what it was," Elton Lawson said.

The car tax is now more than 1 percent of a vehicle's value, which means that if your car or truck is worth $25,000, get ready to pay $125 more. The fees on a 30,000 car will increase by about 150 bucks.

It's bad news for Theresa Muravez, who is in the market for a new car.

"I'm not working right now," the Murphy Canyon resident said. "I'm a stay-at-home mom my husband's deployed right now. So it's hard.... I have to get a bigger car. We can't not do it; we have two little ones and one on the way."

On Wednesday, voters will go to the polls to determine just how long drivers will be paying the higher registration fees. The increase is set to expire in 2011. If Prop 1A is passed, drivers will pay the higher tax until 2013.

"We're not getting anything for all these tax increases," Lawson said. "We're not benefiting from it."

The increase will affect more than 25 million vehicles registered in California. It's expected to raise $1.6 billion over the next year.

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