On the list for new or increased taxes is a return to the original formula for determining your license free for any vehicle in California. The original formula was a license fee of 2% of the value of whatever you drove. It was that way for years-just like Nevada and I'm sure its that way in many states. At the start if the 3rd year the plate started to depreciate with the vehicles value. Some years ago when Gray Davis was governator they had a surplus. There were many proposals of how to give the surplus back to the residents. The one that stuck was lowering the plate basis to about .65% and thats where it is today.

When the state again went into the red during Davis' term there was a clause in the law that returned the fee to the standard 2%. By that time half the state was buying expensive SUV's and the increase really stunned a lot of people. That was a rallying cry during Davis' recall then Arnolds election. Literally the same day he was sworn in his first act was to return the license fee to the .65% of value. I'm pretty certain before the year is out they'll be back to the 2% rule. Doesn't sound like much but if your paying 1,000.00 now that will be 3,000.00 soon.

The most current proposal passed but vetoed by the Governator also made almost everything taxable-even labor. You visit your accountant he taxes your invoice. Now thats a low blow. I bought a subway sandwich the other day and found out if they toast it its taxable-if they don't its not taxable. When will it ever end.