Hike in California 'car tax' would raise up to $4 billion

A proposed ballot measure to more than double California's vehicle license fee would raise $3 billion to $4 billion annually for state and local transportation programs, according to estimates by the Legislative Analyst's Office.

Both versions of the proposed ballot measure by Transportation California would phase in a surcharge to the fee, charging motorists an extra one percent of the vehicle's value each year. The fee has been .65 percent of a vehicle's market value since the late 1990s, with a temporary increase to 1.15 percent from May 2009 through June 2011.

Transportation California's Will Kempton, a former Caltrans director, has said that the measure's supporters will decide this month whether to commit the money to gather signatures to qualify the proposal for the November 2014 ballot. Signature collection could begin after the release of titles and summaries for the measure, which is expected Jan. 13.

Proponents would have up to 150 days to collect 807,615 valid voter signatures to qualify for the 2014 ballot.

PHOTO: Traffic runs along the southbound 110 Freeway towards downtown Los Angeles, April 28, 2005. Associated Press/ Mark J. Terrill