Yet, all signs point toward caution. Moreover, a significant fraction of the current surplus is one-time in nature. Motor vehicles are subject to a license fee equal to 2 percent of a vehicle's market value.
Market value is determined by the vehicle s purchase price adjusted over time for depreciation.
Vehicles are depreciated over an eleven-year period ranging from 100 percent of market value for the first year ownership to 15 percent of market value during the eleventh year of ownership. Used cars are valued at market value at the time of sale and then depreciated over eleven years. Of this amount, 24.33 percent is distributed to counties to fund programs transferred to local government as part of the 1991 shift known as realignment. Most of the non-realignment VLF is divided equally between cities and counties and then distributed on the basis of population. Bad Idea Spending someone else s money.