Property Tax in-lieu of Vehicle License Fees
May 13, 2026
Property Tax in-lieu of Vehicle License Fees (VLF)
2 2020-21
First VLF shortfall
2004
Property Tax swap for reduction of VLF Decoupled from vehicle registration 1992
ERAF
1988
Proposition 98
1935
State uniform vehicle license fee
Property Tax in-lieu of Vehicle License Fees (VLF)
3 • FY 2023-24
was the first
year that the
State did not
appropriate
the full VLF
shortfall (in
their FY 2025-
26 budget).
San Mateo
County only
received
2/3rds of the
$114M that
was owed.
• The County
filed a lawsuit
against the
State for the
remaining
1/3rd ($38M).
VLF Shortfall | Historical & Forecast (in millions)
4 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 All Other Cities $19.8 $6.7 $14.4 $23.5 $24.4 $25.7 $39.5 $50.5 $52.3 $58.9 $55.5 $68.6 SSF $3.7 $1.3 $2.9 $4.9 $5.2 $5.5 $8.2 $10.5 $10.8 $12.2 $11.5 $14.2 San Mateo $5.7 $1.9 $4.1 $6.7 $6.9 $7.1 $11.1 $14.3 $14.7 $16.6 $15.6 $19.4 Redwood City $4.6 $1.5 $3.3 $5.3 $5.4 $5.6 $8.8 $11.3 $11.6 $13.4 $12.3 $15.3 Daly City $5.3 $1.8 $3.8 $6.1 $6.5 $6.7 $10.2 $13.1 $13.5 $15.3 $14.3 $17.8 County $57.0 $19.2 $41.5 $67.8 $70.8 $74.3 $113.4 $145.4 $149.9 $169.5 $159.2 $197.3 $-
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$96.1
$32.4
$70.0
$114.3 $119.2 $124.9
$191.2
$245.1 $252.8
$285.9
$268.4
$332.6
Property Tax in-lieu of VLF Impact | $14M
5 Close Fire
Station
COT + SLO
Programs
Increase
Preschool
Fees
Concert in
the Park
Library hours
Illegal
dumping
Traffic light
maintenance
Holiday
decorations
Bio
Conference
Vacant
positions
Property Tax in-lieu of Vehicle License Fees
City of South San Francisco
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