This research was funded by the California Policy Research Center at the request of the California State Senate Office of Research and was carried out at the Institute of Urban and Regional Development at the University of California, Berkeley.
Journal of Transportation and Statistics
Motor vehicles -- Taxation, Motor vehicles -- Taxation -- United States -- California, 1995 NPTS nationwide personal transportation survey, Motor vehicles -- Taxation -- Analysis
Most states tax the value of residents' motor vehicles. In recent political debates over the future of these levies, the relative effects of these taxes on different socioeconomic groups have been a prominent question. By linking data from the Nationwide Personal Transportation Survey with estimates of vehicle values from consumer vehicle pricing guides, the socioeconomic and demographic incidence of California's Vehicle License Fee is examined. After the effects of state and federal income tax deductions are taken into account, the fee is found to be as regressive as the state's sales tax.
Jennifer Dill, Todd Goldman, and Martin Wachs, "California vehicle license fees: Incidence and equity," Journal of Transportation and statistics, 2 (2): 133-148, December 1999.