How would an increase in vehicle registration fees affect government income

The correct answer is B) state tax revenue would increase.

The other options of the question were A) federal tax revenue would increase. C) more registrations would be processed. D) fewer emissions taxes would be processed.

An increase in vehicle registration fees would affect government income in that "state tax revenue would increase."

When more people pay their vehicle registration fees, the state government would have more money as a result of tax collection. Each state has its own regulations, but generally speaking, more taxes means more money the state government can use to invest in its different programs. For instance, to local governments, to state highways, or the state general fund.