St. Vincent’s Feels the Pinch of Vehicle License Fee Increase
State’s Attempt to Balance Budget Places Heavy Burden on Local Charity

   SAN DIEGO — St. Vincent de Paul Village – along with other California charities and businesses – is facing a drastic increase in costs associated with registering its fleet vehicles.

   Due to the tripling of the car tax, St. Vincent’s expenditures related to licensing its vehicles could increase by close to $31,000 annually.

   In addition to the 11 large trucks the Village utilizes to pick up usable discards throughout San Diego County, St. Vincent’s owns 20 smaller vehicles used by the organization’s various social-services departments.

   The annual registration fees for those smaller vehicles has averaged $215; as of yesterday, the new cost to license those same automobiles will be nearly $650 per car, increasing the total annual cost by $8,700.

   The fees for the large trucks used for donation pickups could be even costlier. Ten of those vehicles are leased through Penske Truck Rentals, and registration fees are included in the price of the lease. Those contracts do not expire until next year; however, if the tax is not repealed by the time the current leasing agreement expires, there will likely be a significant jump in rates. Before the tripling of the tax, it cost the organization just over $1,000 to license the one large truck it owns. Now the same truck’s registration will be more than $3,000.

   "If rates increase for the trucks we lease by $2,000 each, that’s a $20,000 hit we’d be taking just to keep those vehicles on the road," says Father Joe Carroll, president of St. Vincent’s.

   The jump in the vehicle license fees coupled with a marked increase in the cost workers’ compensation coverage is testing the financial resolve of the organization, Father Joe says.

   "Businesses that sell products can increase the selling price of the product to offset part of the increase we’ve seen in the costs associated with running a business," he says. "As a charity, we can’t demand larger donations from our private contributors – we’re lucky that we get anything at all because our supporters are feeling the financial pinch, too."

   It’s Father Joe’s hope that whatever transpires on October 7 will result in a friendlier fiscal environment for charities, businesses and families trying to survive in California.

   "The bottom line is we need to address issues related to the cost of operating a charity or business in this state," he says. "The high cost of living and doing business is driving people to our doors for assistance and driving our supporters away from the great state of California – it’s a double-edge sword for us."

   Media inquiries will be taken at (619) 525-1608.

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