The vehicle license fee (VLF) is an annual fee on the ownership of a registered vehicle in California, levied in place of taxing vehicles as personal property. The fee rate is 2 percent of a vehicle's current estimated value—calculated from the current owner's depreciated purchase price. The revenues are primarily distributed to cities and counties. The 1998 tax relief package passed by the Legislature included a permanent reduction in the VLF of 25 percent, with the potential of greater reductions beginning in 2000-01 if General Fund revenues grow faster than currently projected. As part of this tax reduction agreement, cities and counties will continue to receive the same amount of revenues as under prior law, with the reduced revenues replaced by General Fund spending. This constitutional measure would further reduce the VLF over a two year period and eliminate it in the third year.