Ted Gaines

(PLACERVILLE, CALIFORNIA) July 1, 2022 — Today I launched the California Driver Affordability Act of 2024, an initiative to permanently eliminate the annual Vehicle License Fee. California is suffering from an affordability crisis and drivers are some of the hardest hit. Gas is nearly $7 a gallon and the Governor is allowing another $500 million gas tax increase to go into effect starting TOMORROW. I talked to motorists today at a gas station who said their budgets are being crippled due to gas prices, inflation and California’s high cost of living. This initiative is just a first step in making our state more livable. I hope you’ll join me in supporting it.

SACRAMENTO, CA – Today, State Board of Equalization (BOE) Member Ted Gaines (District 1), announced the California Driver Affordability Act of 2024, an initiative to permanently eliminate the Vehicle License Fee (VLF) for all personal and commercial vehicles.

“California is suffering from an affordability crisis and drivers are some of the hardest hit. From skyrocketing costs to fuel up their tanks, to exorbitant, ever-increasing annual vehicle registration fees – motorists are gouged at every turn,” said BOE Member Gaines. “Vehicles are a necessity, and the California Driver Affordability Act of 2024 will make the cost of car ownership more reasonable for everyone.”

California charges 0.65 percent of your vehicle’s value, paid at purchase and then every year when you register your vehicle. The California Driver Affordability Act of 2024 will eliminate that fee and backfill VLF money from the state’s general fund and nearly $100 billion surplus, so local governments that depend on VLF revenues can continue to operate.

Californians are now paying nearly $7 for a gallon of gas, while the rest of the nation is paying about $2 less. The average California household is spending approximately $5,000 a year in gas. A year ago, households spent about $2,800. If you’re a commuter, live in the country, or own a business, the cost could be much higher. This is all on top of record high inflation.

Instead of providing a temporary gas tax holiday or suspending the gas tax, Governor Newsom is allowing another $500 million gas tax increase to go into effect starting July 1, just in time for July 4^th holiday travel plans.

“Canceling the VLF is a first step out of many. It will help those struggling the most and make California more affordable by saving drivers hundreds of dollars a year, forever. It’s time to cut the car tax and permanently increase the standard of living in our Golden State. I hope you’ll join me in supporting this initiative,” said BOE Member Gaines.

To find out how much you could save on your annual VLF, use this calculator tool on the California Department of Motor Vehicles (DMV) website.

To learn more about the California Driver Affordability Act of 2024, visit www.cutthecartax.com.

Senator Ted Gaines (Ret.) was elected to represent the Board of Equalization’s First District. He is a leading taxpayer advocate and is committed to providing trustworthy and transparent representation for nearly ten million constituents in 30 counties of northern, eastern, and southern California.