California Vehicle License Fee (VLF) for Non-Operation?

[taxes4739]

TurboTax says "Enter the deductible portion of your registration fee.  In California, you can deduct the Vehicle License Fee (VLF) portion of your registration fee."

On the DMV renewal notice, it shows the dollar amount for this "License Fee."  However, in 2020 I renewed as non-operational, & I'm not sure if this VLF portion is still included in what I paid, or if it's considered part of the full operational fee (aka I paid $0 for this, by paying the lower non-operational renewal fee), or if it's prorated between the two.  I tried to get in touch with the DMV to find out, but had no success.

After registering as non-operation, is VLF $0, or the same as it would've been for operational registration, or just a portion?

[LenaH]

It depends. Usually, when you register your vehicle as non-operational, you will only pay registration fees and there is no VLF assessed. The Vehicle License Fee (VLF) is the only portion of your fee that is tax deductible.

As shown below, the deductible VLF fee (License Fee) is listed separately from the registration fee. When you registered it as nonoperational, what fee what were you mandated to pay? If only the registration fee, then you did not pay a license fee. 

You can also use the CA VLF Fees Calculator to determine if you paid a license fee. 

[taxes4739]

Look just slightly below where your screenshot cuts off - the box shown has the full breakdown, then below it, one line that just says "or $xxx to file planned nonoperation." It doesn't give a breakdown for nonoperation, thus, I don't know what "nonoperation" is composed of.

[LenaH]

Per the California DMV, the non-operational status appears to be a registration fee, which is separate from a license fee. This would not be deductible for California tax purposes.

@taxes4739

CA DMV PNO Status

[taxes4739]

I read through it - so sorry, but I wasn't able to see how you were able to determine that it's solely a registration fee (as opposed to partially a registration fee, partially a license fee, like non-PNO renewal)?  Could you point me to the text that revealed that to you?

[Cynthiad66]

Registration Versus Planned Non-Operation (PNO)

The Department of Motor Vehicles (DMV) mails a vehicle registration renewal notice annually to the registered owner of each vehicle registered in California (every two years for off-highway vehicles [OHVs]). At that time the registered owner must decide whether to renew the registration or file for PNO status.

Registration

California law requires vehicles to be currently registered if they are driven, towed, stored, or parked on public roads or highways at any time during the registration period.  Per @enah

CA DMV PNO Status

If the registered owner decides to register the vehicle, full registration renewal fees are due. If the registered owner has moved and did not notify the department, he/she may not receive a vehicle registration renewal notice. It is the registered owner’s responsibility to pay the registration renewal fees on time.

[taxes4739]

I still don't see where that states the breakdown (composition) of the PNO fees.

[LenaH · Accepted solution]

The registration fee (non operational fee) is different from the license fee, as shown in screenshot above. Since the PNO fee of $21 is considered a "registration fee" to keep your car off the road, there is no license fee in that amount. 

@taxes4739

[taxes4739]

Ok, I'll take your word for it - thanks! 🙂