California Legislator Drops Plan to Increase Vehicle Licensing Tax

California Senator Ted Lieu is dropping a plan to ask voters to triple the state’s vehicle license fee rates through a constitutional amendment. Under the plan, Lieu indicated that the 1.35% transportation system user fee increase would generate an estimated $3.5 to $4 billion annually for roads and public transit.

In scrapping the plan, he said in a statement that “over the last few weeks California’s political landscape has changed. I have listened carefully to those who have contacted my office or me. Additionally, more stakeholders weighed in on this important issue. As a result, I will not be introducing the proposal. Instead, I will work with transportation stakeholders and the public next year on alternative ways to mitigate the transportation infrastructure problem.” 

For details, contact Steve McDonald at