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VLF Tax Swap Hits Snag

A proposal to roll back a recent increase in vehicle license fees and replace the lost revenue with higher taxes on tobacco and the wealthy has run into technical difficulties and may not be introduced as legislation.

A spokesman for Sacramento Assemblyman Darrell Steinberg says the idea is still under consideration but isn´t moving because of implementation problems. Those problems include a requirement that part of the higher taxes go to schools. Right now, the VLF revenue goes to local governments.

Lieutenant Governor Cruz Bustamante proposed the swap earlier this month when he announced his candidacy for governor.