Vehicle Registration Fee Cuts Set to Pass
Later today Governor Rick Scott is expected to sign a bill that will reduce vehicle registration fees that were increased in 2009. Unlike last year, however, the fee rollback is not tied to a repeal of insurers’ salary credit against the premium tax. When the proposal surfaced last year, some legislators sought to fund it by eliminating the credit insurers receive for actually employing Florida residents. The repeal seemed curious in an era when Florida is competing countrywide to attract jobs. The link between the repeal of the tax credit and the feel rollback ultimately led to the demise of the fee reduction in 2013.
The fee rollback has been a priority of the 2014 legislature. The repeal has political undertones as the legislature and then-Governor Charlie Crist increased the registration fees in 2009 when dealing with a budget shortfall. The bill is expected to save Floridians nearly $400 million per year after the lower rates go into effect September 1.