DMV Rebate Checks in the Mail

Californians who renew motor vehicle licenses this month will soon receive rebate checks as part of tax relief provided last summer in the state’s 2000-01 budget.

The first checks should arrive by mail this weekend.

The actual amount of the 32.5% reduction will depend on the age and value of the car. But for those who pay the average license fee of $147, the rebate will be $47, according to the governor’s office.

By the end of the month, about 1 million Californians whose registration was due this month will receive about $60 million. The approximately 25 million other drivers in the state will receive refunds--totaling about $1 billion--within 30 days of their normal renewal dates.

“The governor wanted to give back a portion of the prosperity residents helped to create here,” said Hilary McLean, a spokeswoman for Gov. Gray Davis. “This is meant to go to working families who can use it for their own life and family expenses.”

Davis not only supported the reduction, he pushed hard for drivers to receive checks rather than merely pay a reduced rate, because he said people wouldn’t recognize the rebate without some physical evidence.

But because processing and mailing the checks will cost taxpayers an estimated $31.2 million, critics of the governor believe the checks are an unnecessary and expensive step when a reduced rate would have accomplished the same relief. The Department of Motor Vehicles has had to hire extra employees to handle the added workload.

Furthermore, critics say, Davis is using the plan to boost his own political future. The check mailing system will be in place until 2002, when Davis will be up for reelection. After that, residents will simply be charged lower fees.

“For the next two years, Californians will go through this silly and expensive exercise, just so they can appreciate the governor’s generosity,” said state Sen. Tom McClintock (R-Northridge).

Last year, McClintock, then an assemblyman, sponsored a bill proposing that the DMV simply send out reduced bills. The measure passed unanimously in the Assembly but was not picked up by the Senate.

McClintock has also sponsored a nearly identical bill this year with state Sen. Joe Dunn (D-Santa Ana) and hopes that the energy crisis will make politicians more open to it.

“That’s almost enough money to build a 100-megawatt power station,” McClintock said.

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The Check Is in the Mail

Q&A;

California drivers got a tax break last summer when the Legislature cut vehicle license fees. The rebate checks will begin landing in taxpayer mailboxes this weekend.

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Q. How long will it be before I receive the rebate check?

A. You should receive your check within 30 days of the date the Department of Motor Vehicles receives your completed registration renewal.

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Q. I don’t want to wait for my rebate; why can’t the local DMV office just deduct that amount from my renewal fees?

A. The budget law requires all rebate checks to be issued by the state controller’s office. Therefore, the DMV is not authorized to deduct the rebate from the fees due.

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Q. Am I going to get a rebate check for each car I register?

A. Yes, if the vehicle license fee was due and paid for the 2001 renewal period.

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Q. Can I use the rebate check to pay other DMV fees?

A. Yes, the rebate check can be used for any purpose you wish, including payment of other DMV fees.

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Q. I used my credit card to pay the registration; will a credit be applied to my credit card?

A. No, a rebate check will be issued to the registered owner of the vehicle by the state controller’s office.

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Q. I paid $80 for the renewal of my pickup; why did I get a rebate check for only $15?

A. The rebate is based on the amount of vehicle license fees paid. This will vary with each vehicle and does not include other fees required by statute (weight fees, registration fees, county fees, etc.).

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Source: California Department of Motor Vehicles