April 17, 2008
Inequity of Registration Fees Corrected
One of the issues that I have heard concern about for several years is the inequity in the registration costs of pickup trucks in relationship to a comparably-priced car. Because pickup trucks were considered a farm truck when the registration fees were set, all pickup trucks have a standard registration fee of $65 a year. Now that it is fashionable to drive a pickup truck, there are many $30,000 + pickup trucks out on the roadways that have no connection to agricultural use still paying $65. A car of similar weight and value could cost three to four hundred dollars a year in registration fees.
The Iowa House passed out SF 2420 this week, which addresses this inequity on new vehicles. Model year 2010 trucks which weigh less than 10,000 lbs. will be based on the same weight and value formula as cars. If someone has a $30,000 car and a $30,000 pickup in the same weight classification, the registration fee will be the same. There is a $50 floor on all of these.
Because of a belief we still needed to give some priority to ag. & business interests, there is a business-trade/farm truck registration fee which is still reduced. The registration on these begins at $150. Special truck registration fees have increased between $20 and $45, depending on weight.
Some other changes that occur under this bill is a title registration fee increase from $10 to $20, salvage title fees increase from $2 to $10, and trailer registration fee increase from $10 to $20 or $30, depending on size, Travel trailers increase from $20 per square foot to $30 per square foot. This bill eliminates the Motor Vehicle Use Tax and creates the “Fee for New Vehicle Registration”. The amount of the fee paid is exactly the same as the Motor Vehicle Use Tax. Most Iowans will not know the difference but the fee for New Vehicle Registration is constitutionally protected.
The bill states the DOT may adopt rules as necessary to prescribe the documentation required as proof or certification. It provides the Department of Revenue the option of confirming that a person does in fact meet the Business Trade Truck requirements. It also requires trucks that are registered as business trade trucks have a business trade truck license plate. If it is found out the vehicle is not a business-trade truck, the truck owners shall pay regular registration fees in addition to any other penalty or sanction imposed by law. It requires if a person knowingly falsely applies for the business trade truck registration the penalty is a $750 fine per year, not to exceed $2,250.
Besides the inequity situation on pickups, the driving force behind passage of SF 2420 was a belief that it is crucial that we approve a revenue stream to grow the Road Use Tax Fund. Because this fund is constitutionally protected, it can not be spent on anything but road and bridge infrastructure expenditures.
As I am an anti-tax proponent, voting for this bill was a tough call. However, I have been urged by many of my constituents that we need to put some money into our badly deteriorating roads. Although I have empathy for folks on fixed income, I decided that passage of this bill was the only opportunity to get new road funds during the current legislative session, so I reluctantly put up an “aye” vote. It passed the House on a 53 to 47 bipartisan vote.
Visitors to the Capitol
I was very pleased to welcome eight students and three teachers plus the Superintendent of Sigourney High School to the Capitol this week. They showcased the Sigourney Entrepreneurial Academy for Leadership, a new Charter School Program in Sigourney which provides students in grades seven through twelve opportunities to practice business skills. Also, House Page Gloria Stienke’s mother Greer Stienke and her three sisters Emily, Natalie, and Allison were here from Gibson.
I would appreciate your input. My phone number at the Capitol is 515-281-3221, or e-mail me at betty.deboef@legis.state.ia.us. I would welcome visitors at the Capitol, too!