SACRAMENTO- Assemblyman Tom Lackey (R-Palmdale) introduced a bill this week that would allow individuals the ability to pay for their vehicle registration fee in monthly installments.
“As the cost to own and operate a vehicle in California continues to rise, it hurts working-class families the most,” Lackey said in a news release. “In his State of the State address, Governor Newsom underscored the necessity of affordable transportation for the working class who are the backbone of our State’s economy. This bill goes to work for those people.”
The average vehicle registration fee in California is $246, and owners are required to pay the fee in full by its midnight deadline. After a month of deferred payments, a motorist faces up to $100 in fines and those fines continue to rise until payment is made. This disproportionately affects low-income families and individuals, Lackey said.
The Franchise Tax Board (FTB) estimates that of the nearly 33 million vehicle registration renewal notices issued every year, about 3.73 million vehicle registration accounts will become delinquent. When those registrations lose accreditation, the FTB initiates automatic bank transfers from the debtor’s account and the FTB takes the wages until the debts are fully repaid.
“If a person can’t afford to pay their car registration on time, the state should not be taking people’s cars to compel payment… The state needs to find a way to help poor people afford to pay their registration as proposed in AB 461,” stated Mike Herald from the Western Center on Law and Poverty.
AB 461 aims to allow monthly installment payments, and through the DMV, shows support for individuals that need the most help, according to Lackey.
[Information via news release from the Office of Assemblyman Tom Lackey.]