@NCCapitol

@NCCapitol

DMV fee hike not quite 'inflationary'

Posted May 19, 2015

— Part of the House budget proposal is an across-the-board 50 percent increase in fees at the state Division of Motor Vehicles, from vehicle registration to license renewals.

An eight-year driver's license would go from $32 to $48. Annual car registration would go from $28 to $42. The surcharge for electric vehicles, meant to replace lost gas tax revenue, would go from $100 to $150.

Those fee increases have caused some heartburn within the House Republican caucus. Rep. Paul Tine, U-Dare, acknowledged that fact as he presented the transportation budget to the House Appropriations Committee on Tuesday.

"There’s always going to be someone who has a position they’re not going to like about this," Tine said. "We spread the burden of investment as evenly as possible."

Pointing out that DMV fees have not increased since 2005, Tine asserted the 50 percent fee hike would be "a rate just above inflation," a claim echoed by transportation budget co-chairman Rep. John Torbett, R-Gaston.

The math, however, doesn't hold up.

According to the U.S. Bureau of Labor Statistics, the agency in charge of tracking inflation and increases in the Consumer Price Index, the cumulative rate of inflation between 2005 and 2015 is actually just above 22 percent.

Using the BLS calculator, an inflationary increase in the $32 license fee would bring it to $38.46, not $48. Auto registration would increase to $33.65, rather than $42.

Asked how much new money the House proposal would add to the transportation budget, Torbett said about $300 million, adding that it is "specifically addressing the resurfacing of roads and port modernization."

10 Comments

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  • James Hawk May 20, 2015
    user avatar

    So, we get a 2% raise maybe after years of nothing and now we also get 50% raise in DMV fees = NO RAISE!!! Thanks Republi-cons!!!!

  • Jeff Edwards May 19, 2015
    user avatar

    The declining gas tax revenues make it necessary to raise these fees. I am curious how much Commercial licenses and fees are rising. I am sure a 30,000 lb vehicle does much more damage to the highway than my 4,000 lb car. Are commercial fees rising as much?

  • Tammy Rush May 19, 2015
    user avatar

    View quoted thread


    The ID's are free to obtain but still cost money to produce, hence the fee hike. If anyone didn't see this coming they weren't paying attention.

  • Nathaniel Grubbs May 19, 2015
    user avatar

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    And just in time for the ID requirement for voting to kick in for the 2016 election. Sorry you don't have the time to go to the DMV to get the ID, poor people. Oh, and just in case you do, here is a price hike on top of it.

  • Bubba Zanetti May 19, 2015
    user avatar

    View quoted thread


    The Dems aren't doing this, so that's a moot point.

  • Mark Cline May 19, 2015
    user avatar

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    Like, the Dems math is better?

  • Erika Phipps May 19, 2015
    user avatar

    So rather than using that BLS calculator, our brilliant representatives are using a BS calculator. Such a shock, ain't it?

  • Joseph Smith May 19, 2015
    user avatar

    Further assault on working people. If it's not more to big education it's more taxes disguised as fees.

  • Jim Buchanan May 19, 2015
    user avatar

    Want my first born too!?

  • Michael Hart May 19, 2015
    user avatar

    ah, good old GOP math......