We Propose the Following Reforms:

Adjust Vehicle License Fee (VLF) Based on Current Market Value:

Registration fees should reflect real-world depreciation — not the original sale price. The state should use reliable market sources (e.g., Kelley Blue Book, Edmunds, or DMV valuation data) to determine fair vehicle values each renewal cycle.
Implement Biannual Registration Options:

Allow drivers to pay registration fees every two years instead of yearly, reducing administrative overhead and financial burden on households.
Cap or Reduce the Vehicle License Fee Rate:

Lower the VLF percentage to a fairer rate, in line with national averages, to reflect California’s high cost of living and ongoing inflation.
Improve Transparency:

Require the DMV to publish a clear breakdown showing exactly where registration fees go — including state, county, and district surcharges.
 

Why This Matters

Californians already pay some of the highest costs in the nation for housing, energy, and transportation. Excessive and outdated registration fees:

Disproportionately impact low- and middle-income families,
Do not accurately reflect a car’s true value, and
Provide little transparency into how funds are spent.
 

Reforming this system will make California more affordable, equitable, and accountable to its citizens. 

We Urge:

The California State Legislature and the Governor to introduce and support a bill enacting these reforms during the upcoming legislative session.