State Controller Connell Issues First Motor Vehicle License Fee Rebate checks

    SACRAMENTO, Calif., Jan. 25 State Controller
Kathleen Connell issued the first of over 50,000 Motor Vehicle License
Fee (MVLF) rebate checks today at the state's Disbursement Center in
Sacramento.  The checks will begin arriving in motorists' mailboxes as early
as this weekend.  Residents whose registration renewals came due this month
will be the first to receive the light purple checks signed by the Controller.

    The amount of each check will depend on the age and value of the vehicle,
with the average rebate estimated at $47 based on a vehicle license fee of
$145.  The 32.5 percent Vehicle License Fee rebate is a new tax break, in
addition to the currently existing 35 percent Vehicle License Fee offset,
bringing the total tax cut to 67.5 percent.

    At the disbursement center where Connell's staff of 13 state employees
began the processing of checks, she indicated her support and enthusiasm for
the rebate.  "Any time we can return money to California's hard-working
taxpayers, we feel an obligation to complete the task with accuracy and speed,
be it returning income tax return checks or today's vehicle license fee
rebates."

    The State Controller and her staff expect to distribute $866 million in
rebates from January 1 through June 30 of this fiscal year, with a total of
$1.74 billion in rebates set for fiscal year, 2001-2002.

    The Department of Motor Vehicles (DMV) will submit data to the
Controller's office at an initial rate of 260,000 rebates per day, declining
eventually to 100,000 per day until all rebates are issued.  The State
Controller's Office has thirty days from receipt of DMV files to process the
checks, however, the Controller has set 3 to 5 business days after receipt of
the files as a goal for delivery.  "This money belongs in the pockets of
motorists, not the state government.  I have always set performance standards
for my staff, and the quick delivery of these checks is no exception."

    The MVLF rebate program is a result of two Legislative Statues, AB 858 and
AB 511 and requires the following:

    1. The state will rebate taxpayers a portion of the MVLF paid in calendar
years 2001 and 2002.
    2. The DMV determines rebate eligibility and provides the State
Controller's Office with information to issue warrants.
    3. The State Controller's Office will begin issuing rebate warrants in
January, 2001.