3.075 Vehicle License Fee

Chapter 3 Collection and Payment of Fees and Penalties

3.075 Vehicle License Fee (VLF) (CR&TC §§10751-10753)

The VLF is collected upon original registration and registration renewal for automobiles, motorcycles, trailer coaches, park trailers, and commercial vehicles.

VLF for fees due:

• After 1/1/05 is .65 percent of the market value of the vehicle.
• On or after 5/19/09, through 1/1/05 is 1.15 percent of the market value of the vehicle.
• Prior to 5/19/09, is .65 percent of the market value of the vehicle.

The VLF is subject to a penalty based on the date the fee was paid. See the Waiver of Fees and/or Penalties section in this chapter.

The market value of a vehicle is depreciated for each registration year of its life in accordance with the 11th year depreciation schedule, (park trailers have an 18-year depreciation schedule) beginning with the first year as a new vehicle or first classification year for VLF purposes.

See the City and County Fees section in this chapter for VLF exceptions/modifications.

Follow the chart to determine the purchase price/market value:

Step 1

The market value is determined by the cost to the consumer when the vehicle is sold new or the year the vehicle was transferred to the current owner.

The cost price:

• Includes the full purchase price of the vehicle with accessories and modifications made by the seller.
  • The value of a trade-in, rebate, or exchange of a vehicle is not deducted from the purchase price.
• Does not include tax, smog certification costs, document preparation fees, license fees, and finance charges.
• Is based on the cost price to the dealer for a new or nonresident vehicle registered to the dealer.
• Does not include the vehicle modifications necessary to enable a disabled person to use or operate a vehicle.
  • Applications for registration of modified vehicles must include evidence of the cost of the vehicle and a bill of sale or invoice identifying the modifications and costs.

Step 2

• Include the federal excise tax (FET) in the cost price upon the first retail sale of a truck or a truck chassis with a GVW of 33,001 pounds or more.
• The FET is not included for sales or use tax purposes.

Step 3

When an incomplete new commercial vehicle to be altered or modified before registration is sold and delivered to the buyer, enter the cost of the cab and chassis or chassis only on the Application for Registration of New Vehicle (REG 397) form.

Year Sold vs. Asterisk Year

Two different “years” are assigned to a vehicle and used when determining VLF:

• Year First Sold—Usually the year in which the vehicle was first sold as a new vehicle. This designated year is used to determine the VLF depreciation starting point, and each year until the vehicle is resold or otherwise reclassified.
• Asterisk Year—Usually the year when a vehicle is transferred to a new owner, a nonresident purchased the vehicle, or an alteration places the vehicle in a different VLF class.
  • An asterisk year can also be assigned when a commercial vehicle is purchased new in December in order to implement the correct depreciation schedule.

Exceptions: An asterisk year is not assigned on:

• Transfer of a leased vehicle from the lessor to the lessee.
• Transfer of a repossessed vehicle to the repossessor.
• Transfers between certain family members who are exempt from use tax.
• Transfer of a vehicle to the insurance company after a total loss settlement.
• Vehicles being junked.

VLF Class

• The VLF class classification is a two letter (alpha) code based on the purchase price or current market value.
• The VLF class is established when the vehicle is sold new or first registered in California and is usually changed when a vehicle is transferred or modified as to require reclassification.
• The assigned VLF class and the year first sold or asterisk year (*YR), if present, is used to determine the VLF.

The year model is never used to determine VLF.

VLF Rate Tables

DMV publishes three VLF rate tables which list the VLF classifications and corresponding fees.

• VLF (.65%) Rate Table (includes CVRA vehicles) (REG 360).
• VLF (1.15%) Vehicle License Fee Rate Table Park Trailers (REG 364).
• VLF (1.15%) Vehicle License Fee Rate Table (REG 365) for all vehicles except CVRA vehicles and park trailers.

Obtain a copy of the REG 360, REG 364, or the REG 365 by submitting a written request by mail or fax to:

Department of Motor Vehicles
Materials Management Section
Inventory Control Operations
4201 Sierra Point Dr., Ste. 112
Sacramento, CA 95834-7900
Fax Number: (916) 928-7900
Call (916) 928-7901 if you have a question about your order.

Determining the VLF Amount

• Determine the amount of the VLF by using the:
  • VLF (.65%) Vehicle License Fee Rate Table (REG 360) (includes CVRA vehicles).
  • VLF (1.15%) Vehicle License Fee Rate Table for Park Trailers (REG 364).
  • VLF(1.15%) Vehicle License Fee Rate Table (REG 365) for all vehicles except CVRA vehicles and park trailers.
• One or more of the following are required:
  • Purchase price or current market value.
  • Year first sold or asterisk year.
  • VLF class currently shown on the California title.

The online Vehicle Registration Fee Calculator can be used to obtain an estimate of all registration fees due for new and nonresident vehicles or the amount of VLF paid in a prior year for tax purposes.

New Vehicle or Nonresident Vehicle Sold to a New Owner

The VLF will be calculated using the purchase price or current market value.

• Locate the cost price of the vehicle in the far left column.

Example: $12,479 is within the $12,400 – $12,599.99 range and is assigned the VLF class “CX.”

• Collect the fee shown in the first column.

Example: Using the VLF class “CX” and the:

• REG 360 (for CVRA vehicles or all vehicles with fees due prior to 5/19/09), the VLF would be $81.
•  REG 364 (for park trailers) the VLF would be $122.
•  REG 365 (for all vehicles except CVRA vehicles and park trailers), the would be $144.

Nonresident Vehicle Registered by Out-of-State Purchaser

VLF will be determined by the purchase price and the year the owner purchased the vehicle.

• Locate the cost price of the vehicle in the far left column.

Example: $12,479 is within the bracket $12,400 – $12,599.99 and is assigned the VLF Class “CX.”

• Using the first column as the current year, count back to the year the vehicle was purchased by the owner.

Example: If the owner purchased the vehicle two years prior, start with the first column as the current year, count back (to the right) two columns to that year.

• Collect the fee shown in the third column.

Example: Using the:
— REG 360 (for CVRA vehicles or all vehicles with fees due prior to 5/19/09), the VLF would be $65.
— REG 364 (for park trailers) the VLF would be $79.
— REG 365 (for all vehicles except CVRA vehicles and park trailers), the VLF would be $115.

California-Registered Vehicle Transferred Prior to Expiration Date

VLF will be determined by the current purchase price or market value:

• Locate the cost price of the vehicle in the far-left column.

Example: $13,479 is within the bracket $13,400 – $13,599.99 and is assigned the VLF class “DC.”

• Collect the fee shown in the first column.

Example: Using the:
— REG 360 (for CVRA vehicles or all vehicles with fees due prior to 5/19/09), the VLF would be $88.
— REG 364 (for park trailers) the VLF would be $132.
— REG 365 (for all vehicles except CVRA vehicles and park trailers), the VLF would be $155.

California-Registered Vehicle Transferred After Expiration Date

VLF will be determined by the current VLF class and year sold or *YR, regardless of the purchase price of the new owner.

• Locate the current VLF class of the vehicle in the far-left column.
• Locate the year sold, or *YR, if present.
• Using the first column as the expiration year, count back (to the right) to the appropriate year for the *YR, or if none present, the year sold.

Example: If the *YR of the vehicle is two years prior, start with the first column as the current year, count back (to the right) two columns to that year.

• Collect the fee shown in that column.

Example: If the VLF class was “CV,” using the:
— REG 360 (for CVRA vehicles or all vehicles with fees due prior to 5/19/09), the VLF would be $63.
— REG 364 (for park trailers) the VLF would be $77.
— REG 365 (for all vehicles except CVRA vehicles and park trailers), the VLF would $111.

MA Class Vehicles

Vehicles with a purchase price of $96,400 or more are assigned VLF class “MA”.

• The VLF due for these vehicles varies based on the actual selling price for the vehicle.
• The VLF is calculated programmatically.
• Direct any VLF-related questions to the DMV Customer Communications Section at (916) 657-6560.

Modified/Exempt VLF

The following are assessed a modified VLF or are exempt from VLF:

• California Native American Tribes/Tribal Member Vehicles—Owners are exempt from VLF when a Miscellaneous Certifications (REG 256A) form with the Native American Certification section completed is submitted with the application.
  • See Chapter 6 for more information.
• Federally-Recognized Native American Tribe Vehicles (VC §9104.5 and R&TC §10781.1)—Owners are exempt from VLF and all other fees, when a REG 256A with the Native American Certification section completed is submitted with the application.
  • See the New Vehicles Sold by California Dealers section in Chapter 6 for more information.
• Historical Vehicles (VC §5004 and CR&TC §10753.5)—qualified vehicles assigned Historical Vehicle or Horseless Carriage License Plates are subject to a VLF of $2 each year. See the Special License Plates section in Chapter 21 for
  more information.
• Nonresident Military (NRM) Personnel Vehicles—qualified nonresident military and their nonresident spouses are exempt from VLF when a Nonresident Military Exemption Statement (REG 5045) form is submitted with the application.
• Specialized Transportation Vehicles—are exempt from VLF when a Certificate of Exemption for Specialized Transportation Vehicle Exemption Certification (REG 345) form is submitted with the application.