Business Services Industry
California Cities Question Benefits of Higher Car Tax.
Knight Ridder/Tribune Business News, June, 2003
By David M. Drucker, Inland Valley Daily Bulletin, Calif. Knight Ridder/Tribune Business News
Jun. 17--SACRAMENTO, Calif.--Advocates of tripling the car tax sold the increase on the grounds it would spare local governments from the budget ax as the state climbs out of a $34 billion hole, but the deficit will likely cost cities about $1 billion anyway.
Although Gov. Gray Davis is the chief sponsor of the plan, Senate Democrats included it in legislation used as a blueprint for budget negotiations with the Assembly. No Republicans voted for the bill.
"If they raise the vehicle license fee and engage in a shell game to take money back from local government, I think taxpayers should be outraged, and I think local officials will be outraged,"...
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