§ 100425 Annual Fee Adjustment Mechanism

Health and Safety Code·California

AI SummaryVerified

This law makes the cost of any state permit, license, registration, or similar document go up each year by the same percentage that the state budget says, using last year's cost as the starting point.

Key Takeaways

•Fees are automatically adjusted each year by the budget’s percentage change.
•The starting point for the calculation is the fee charged in the previous calendar year.
•The total increase cannot be more than the actual extra cost of the program or service.
•The Department of Finance must publish the exact new fee amounts every year.
•Fees for Section 103625 are rounded to the nearest whole dollar.

Example

A driver renews a vehicle registration that cost $100 last year.

If the Budget Act says the state's costs went up 3% this year, the new registration fee will be $100 × 1.03 = $103. The Department of Finance will then publish that $103 number for everyone to see.

How to Calculate

New Fee = Prior‑Year Fee × (1 + Percentage Change ÷ 100)

Find the fee amount that was charged in the previous calendar year.
Look up the percentage change that the Budget Act printed for the state department’s costs.
Add 1 to the percentage change expressed as a decimal (e.g., 4% becomes 0.04, so 1 + 0.04 = 1.04).
Multiply the prior‑year fee by the number from Step 3.
If the fee is for Section 103625, round the result to the nearest whole dollar.

A business license cost $150 last year and the Budget Act shows a 4% increase.

Result: New Fee = 150 × (1 + 4 ÷ 100) = 150 × 1.04 = $156

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 100425 Annual Fee Adjustment Mechanism

(a) The fees or charges for the issuance or renewal of any permit, license, registration, or document pursuant to Sections 1676, 1677, 2805, 11839.25, 103625, 106700, 106890, 106925, 107080, 107090, 107095, 107160, 110210, 110470, 110471, 111130, 111140, 111630, 111923.5, 111923.6, 112405, 112510, 112750, 112755, 113060, 113065, 114065, 115035, 115065, 115080, 117923, 117995, 118045, 118210, and 118245 shall be adjusted annually by the percentage change printed in the Budget Act for those items appropriating funds to the state department. After the first annual adjustment of fees or charges pursuant to this section, the fees or charges subject to subsequent adjustment shall be the fees or charges for the prior calendar year. The percentage change shall be determined by the Department of Finance, and shall include at least the total percentage change in salaries and operating expenses of the state department. However, the total increase in amounts collected under this section shall not exceed the total increased cost of the program or service provided. (b) The state department shall publish annually a list of the actual numerical fee charges for each permit, license, certification, or registration governed by this section. (c) This adjustment of fees and publication of the fee list shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (d) With respect to the fees or charges pursuant to Section 103625, the actual dollar fee or charge shall be rounded to the nearest whole dollar. (Amended by Stats. 2025, Ch. 105, Sec. 23. (AB 144) Effective September 17, 2025.)

Last verified: January 11, 2026

Key Terms

registration adjustment license budget act certification effective september issuance document

References

Official text at leginfo.legislature.ca.gov
California Legislature. Health and Safety Code. Section 100425.

§ 100425 Annual Fee Adjustment Mechanism

Health and Safety Code·California

AI SummaryVerified

§ 100425 Annual Fee Adjustment Mechanism

Key Takeaways

•Fees are automatically adjusted each year by the budget’s percentage change.
•The starting point for the calculation is the fee charged in the previous calendar year.
•The total increase cannot be more than the actual extra cost of the program or service.
•The Department of Finance must publish the exact new fee amounts every year.
•Fees for Section 103625 are rounded to the nearest whole dollar.

Example

A driver renews a vehicle registration that cost $100 last year.

How to Calculate

New Fee = Prior‑Year Fee × (1 + Percentage Change ÷ 100)

Find the fee amount that was charged in the previous calendar year.
Look up the percentage change that the Budget Act printed for the state department’s costs.
Add 1 to the percentage change expressed as a decimal (e.g., 4% becomes 0.04, so 1 + 0.04 = 1.04).
Multiply the prior‑year fee by the number from Step 3.
If the fee is for Section 103625, round the result to the nearest whole dollar.

A business license cost $150 last year and the Budget Act shows a 4% increase.

Result: New Fee = 150 × (1 + 4 ÷ 100) = 150 × 1.04 = $156

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 100425 Annual Fee Adjustment Mechanism

Last verified: January 11, 2026

Key Terms

registration adjustment license budget act certification effective september issuance document

References

Official text at leginfo.legislature.ca.gov
California Legislature. Health and Safety Code. Section 100425.

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References