Ashburn Announces Bill to Repeal California’s
PICKUP TRUCK TAX
BAKERSFIELD -- Senator Roy Ashburn today announced legislation to repeal California’s “Pickup Truck Tax.” Senate Bill 422 will exempt from the definition of "commercial vehicle" a pickup truck that is not used for the transportation of property for commercial purposes.
Since 1973 the California Department of Motor Vehicles has classified all pickup trucks as commercial vehicles and assesses an added Commercial vehicle fee, typically $80-$154 for midsize pickup trucks and as high as $257 for trucks used for towing recreational vehicles and horse trailers. The commercial fees are charged to families and other private non-commercial pickup truck owners despite an estimate by Department of Motor Vehicles which suggests that 90% of California’s registered pickup trucks are not used for commercial purposes.
In 2008 the DMV estimates it will collect $288 million in commercial fees on pickup trucks which are not used for commercial purposes.
“California families are already burdened by various Federal, State and Local taxes and fees. The last thing they need is another tax on the family truck that they were never supposed to be paying in the first place,” said Senator Ashburn.
Ashburn was joined by Lew Uhler, Chairman of the National Tax Limitation Committee. “California’s tax system is about as messed up as it can get,” said Uhler. “It just adds insult to injury when four-and-a-half million truck owners are forced to pay a commercial fee that does not apply to them. This is tantamount to stealing and it has to stop. That is why I am coming out strongly in support of Senator Ashburn’s Bill,” Uhler concluded.
Though the commercial truck fee is based on the weight of the vehicle, the charge does not apply to pickup trucks with a permanent sleeper shell, SUV’s or large passenger sedans heavier than many models of pickup trucks.
“There may have been a time when pickup trucks were used mainly for construction and trades, but that’s certainly not the case today. Families have discovered the convenience and utility of having a pickup truck for do-it-yourself projects, recreation, and day-to-day shopping and chores,” Ashburn added. “There is no good reason for the State to collect commercial fees on personal vehicles not being used for commercial purposes. SB 422 will fix this unfair tax by charging the added fees only on trucks that are actually used commercially,” Ashburn concluded.
SB 422’s first legislative hurdle will be a hearing before the Senate Transportation next Tuesday April 17th. If the bill passes it would then go on to the Senate Appropriations Committee prior to consideration on the floor of the Senate.