Motorists' annual license fees would rise from 0.65% of the value of their vehicles to 2%. For a car or truck valued at $25,000, the increase would be $336. ... The last governor to triple the license fee was his predecessor, Gray Davis. Voter anger soared, and the increase played a large role in Davis' removal from office. Schwarzenegger crusaded against the hike throughout the recall campaign, and in his first act in office he cut the fee -- the "car tax," as he and some others call it -- back to its current rate...
Davis did not increase any "car tax."
Previous Governor Republican Pete Wilson signed a Vehicle License Fee offset as an idealogical tax break. It reduced the tax paid by purchasers of new cars paid by consumers to the state, and included a sunset clause intended to rescind the break when the state's budget required it.
At some point in Davis' term, the VLF offset went away. The powerful energy lobby, car dealerships, and Congressman Darrell Issa exploited this as a primary tool to get behind Schwarzenegger in the recall of Davis. Schwarzenegger said little during the campaign other that "car tax" "car tax" and replaced Davis with an ineffective state administration in a recall election based on misinformation that never should have happened.
The car dealerships, the biggest contributors to Schwarzenegger's campaign, won big. Schwarzenegger's first act as Governor was famously at a car dealership, rescinding the VLF offset, as Quid Pro Quo for their support in the recall effort.
With this recall, corporate influence on the California state government and election process reached a new level.
Recall the fascist.
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