H.F. 2393 Section 1. Section 29A.101A, subsection 5, Code 2009, is 1 amended to read as follows: 2 5. Rents or lease amounts unpaid for the period preceding 3 the effective date of the lease termination shall be paid 4 on a prorated basis. In the case of a vehicle lease, the 5 lessor shall not impose an early termination charge, but any 6 summonses, title and registration fees, including the fee for 7 new registration under section 321.105A, the new motor vehicle 8 registration surcharge under section 321.105B if applicable , 9 and any other obligation and liability of the lessee in 10 accordance with the terms of the lease, including reasonable 11 charges to the lessee for excess wear, use, and mileage, that 12 are due and unpaid at the time of termination of the lease 13 shall be paid by the lessee. 14 Sec. 2. Section 321.2, subsection 4, Code 2009, is amended 15 to read as follows: 16 4. The director of revenue shall administer and enforce 17 the collection of the fee for new registration as provided 18 in section 321.105A and the new motor vehicle registration 19 surcharge as provided in section 321.105B . 20 Sec. 3. Section 321.20, subsection 1, Code 2009, is amended 21 by adding the following new paragraph: 22 NEW PARAGRAPH . 0f. The amount of the new motor vehicle 23 registration surcharge to be paid under section 321.105B. 24 Sec. 4. Section 321.23, subsection 3, Code Supplement 2009, 25 is amended to read as follows: 26 3. In the event an applicant for registration of a 27 foreign vehicle for which a certificate of title has been 28 issued is able to furnish evidence of being the registered 29 owner of the vehicle to the county treasurer of the owner’s 30 residence, although unable to surrender such certificate of 31 title, the county treasurer may issue a registration receipt 32 and plates upon receipt of the required annual registration 33 fee and the fee for new registration , plus the new motor 34 vehicle registration surcharge if applicable, but shall not 35 -1- LSB 5946YH (3) 83 dea/nh 1/ 7

H.F. 2393 issue a certificate of title thereto. Upon surrender of 1 the certificate of title from the foreign state, the county 2 treasurer shall issue a certificate of title to the owner, 3 or person entitled thereto, of such vehicle as provided in 4 this chapter. The owner of a vehicle registered under this 5 subsection shall not be required to obtain a certificate of 6 title in this state and may transfer ownership of the vehicle 7 to a motor vehicle dealer licensed under chapter 322 if, at the 8 time of the transfer, the certificate of title is held by a 9 secured party and the dealer has forwarded to the secured party 10 the sum necessary to discharge the security interest pursuant 11 to section 321.48, subsection 1. 12 Sec. 5. Section 321.24, subsection 10, Code Supplement 13 2009, is amended to read as follows: 14 10. A vehicle shall be registered for the registration 15 year. A vehicle registered for the first time in this state 16 shall be registered for the remaining unexpired months of 17 the registration year and pay an annual registration fee 18 prorated for the remaining unexpired months of the registration 19 year , plus a fee for new registration if applicable pursuant 20 to section 321.105A , and a new motor vehicle registration 21 surcharge if applicable pursuant to section 321.105B . 22 Except for a vehicle registered under chapter 326, a vehicle 23 registered for the first time during the eleventh month of the 24 owner’s registration year may be registered for the remaining 25 unexpired months of the registration year as provided in 26 this paragraph or for the remaining unexpired months of the 27 registration year and for the next registration year, upon 28 payment of the applicable registration fees. 29 Sec. 6. Section 321.30, subsection 3, Code 2009, is amended 30 to read as follows: 31 3. The department or the county treasurer shall refuse 32 registration of a vehicle if the applicant for registration of 33 the vehicle has failed to pay the required annual registration 34 fee , or the fee for new registration , or the new motor vehicle 35 -2- LSB 5946YH (3) 83 dea/nh 2/ 7

H.F. 2393 registration surcharge if applicable, of any vehicle owned or 1 previously owned when the fee was required to be paid by the 2 applicant, and for which vehicle the registration was suspended 3 or revoked under section 321.101, subsection 1, paragraph “d” , 4 or section 321.101A, until the fee is paid together with any 5 accrued penalties. 6 Sec. 7. Section 321.46, subsection 2, Code 2009, is amended 7 to read as follows: 8 2. Upon filing the application for a new registration 9 and a new title, the applicant shall pay a title fee of 10 twenty dollars, an annual registration fee prorated for the 11 remaining unexpired months of the registration year, and a fee 12 for new registration if applicable , and a new motor vehicle 13 registration surcharge if applicable . A manufacturer applying 14 for a certificate of title pursuant to section 322G.12 shall 15 pay a title fee of ten dollars. However, a title fee shall 16 not be charged to a manufactured or mobile home retailer 17 applying for a certificate of title for a used mobile home or 18 manufactured home, titled in Iowa, as required under section 19 321.45, subsection 4. The county treasurer, if satisfied of 20 the genuineness and regularity of the application, and in the 21 case of a mobile home or manufactured home, that taxes are 22 not owing under chapter 435, and that applicant has complied 23 with all the requirements of this chapter, shall issue a 24 new certificate of title and, except for a mobile home, 25 manufactured home, or a vehicle returned to and accepted by a 26 manufacturer as described in section 322G.12, a registration 27 card to the purchaser or transferee, shall cancel the prior 28 registration for the vehicle, and shall forward the necessary 29 copies to the department on the date of issuance, as prescribed 30 in section 321.24. Mobile homes or manufactured homes titled 31 under chapter 448 that have been subject under section 446.18 32 to a public bidder sale in a county shall be titled in the 33 county’s name, with no fee, and the county treasurer shall 34 issue the title. 35 -3- LSB 5946YH (3) 83 dea/nh 3/ 7

H.F. 2393 Sec. 8. Section 321.101A, Code 2009, is amended to read as 1 follows: 2 321.101A Revocation of registration by county treasurer. 3 The county treasurer may revoke the registration and 4 registration plates of a vehicle if the annual registration 5 fee , or the fee for new registration , or the new motor vehicle 6 registration surcharge is paid by check, electronic payment, or 7 credit card and the check, electronic payment, or credit card 8 is not honored by the payer’s financial institution or credit 9 card company, upon reasonable notice and demand. The owner 10 of the vehicle or person in possession of the registration 11 and registration plates for the vehicle shall immediately 12 return the revoked registration and registration plates to the 13 appropriate county treasurer’s office. 14 Sec. 9. Section 321.105A, subsection 1, unnumbered 15 paragraph 1, Code Supplement 2009, is amended to read as 16 follows: 17 The following terms, when used in this section or section 18 321.105B , shall have the following meanings, except in those 19 instances where the context clearly indicates otherwise: 20 Sec. 10. NEW SECTION . 321.105B New motor vehicle 21 registration surcharge —— new luxury vehicles and new 22 fuel-inefficient vehicles. 23 1. In addition to the fee for new registration, a new motor 24 vehicle registration surcharge is imposed in the amount of four 25 tenths of one percent of the purchase price of a new motor 26 vehicle subject to the fee for new registration under section 27 321.105A, subsection 2, or four tenths of one percent of the 28 leased price of a new motor vehicle subject to the fee for new 29 registration under section 321.105A, subsection 3, if the new 30 motor vehicle is also subject to registration based on the 31 weight and value of the motor vehicle under section 321.109, 32 subsection 1. The surcharge shall be paid by the owner of the 33 vehicle to the county treasurer at the time application is 34 made for registration and certificate of title, in the manner 35 -4- LSB 5946YH (3) 83 dea/nh 4/ 7

H.F. 2393 provided in section 321.105A. 1 2. A motor vehicle is exempt from the surcharge imposed 2 under this section if both of the following apply: 3 a. The purchase price or leased price of the motor vehicle 4 is less than forty-five thousand dollars. 5 b. The fuel economy of the motor vehicle, as determined by 6 the United States environmental protection agency administrator 7 in accordance with 26 U.S.C. § 4064(c), is nineteen miles per 8 gallon or more. 9 3. The director of revenue, in consultation with the 10 department of transportation, shall administer and enforce the 11 surcharge imposed under this section as nearly as possible 12 in conjunction with the administration of the fee for new 13 registration as provided in section 321.105A, subsection 4. 14 4. Moneys collected from the surcharge imposed pursuant to 15 this section shall be deposited in the road use tax fund. 16 Sec. 11. Section 321.129, subsection 3, Code 2009, is 17 amended to read as follows: 18 3. This section does not apply to the fee for new 19 registration administered by the department of revenue pursuant 20 to section 321.105A or the new motor vehicle registration 21 surcharge administered by the department of revenue pursuant to 22 section 321.105B . 23 Sec. 12. Section 321.151, Code 2009, is amended to read as 24 follows: 25 321.151 Duty and liability of treasurer. 26 The county treasurer shall collect the registration fee, the 27 fee for new registration, the new motor vehicle registration 28 surcharge, and penalties on each vehicle registered by the 29 county treasurer and shall be responsible on the county 30 treasurer’s bond for such amount. The county treasurer shall 31 remit such amount to the treasurer of state as provided in this 32 chapter. Fees collected pursuant to participation in county 33 issuance of driver’s licenses under chapter 321M shall be 34 governed by the provisions of that chapter. 35 -5- LSB 5946YH (3) 83 dea/nh 5/ 7

H.F. 2393 Sec. 13. Section 321.152, subsection 1, paragraph a, Code 1 2009, is amended to read as follows: 2 a. Four percent of the total collection, excluding the 3 amount of any fee for new registration or new motor vehicle 4 registration surcharge , for each annual or semiannual vehicle 5 registration and each duplicate registration card or plate 6 issued. 7 Sec. 14. Section 322G.4, subsection 2, unnumbered paragraph 8 2, Code 2009, is amended to read as follows: 9 Refunds shall be made to the consumer and lienholder of 10 record, if any, as their interests appear. If applicable, 11 refunds shall be made to the lessor and lessee as follows: the 12 lessee shall receive the lessee’s cost less a reasonable offset 13 for use, and the lessor shall receive the lease price less the 14 aggregate deposit and rental payments previously paid to the 15 lessor for the leased vehicle. If it is determined that the 16 lessee is entitled to a refund pursuant to this chapter, the 17 consumer’s lease agreement with the lessor is terminated upon 18 payment of the refund and no penalty for early termination 19 shall be assessed. The department of revenue shall refund 20 to the manufacturer any use tax or fee for new registration 21 and any new motor vehicle registration surcharge which the 22 manufacturer refunded to the consumer, lessee, or lessor under 23 this section, if the manufacturer provides to the department of 24 revenue a written request for a refund and evidence that the 25 use tax or fee for new registration and the new motor vehicle 26 registration surcharge, if applicable, was paid when the 27 vehicle was purchased and that the manufacturer refunded the 28 use tax or fee for new registration to the consumer, lessee, 29 or lessor. 30 EXPLANATION 31 This bill imposes a one-time registration surcharge on 32 new motor vehicles with a purchase price or leased price of 33 $45,000 or more or a fuel economy rating lower than 19 miles 34 per gallon. The surcharge equals 0.4 percent of the motor 35 -6- LSB 5946YH (3) 83 dea/nh 6/ 7

H.F. 2393 vehicle’s purchase price or leased price. The surcharge 1 applies to motor vehicles that are registered annually for 2 a fee based on the weight and value of the vehicle and are 3 subject to the fee for new registration (formerly the vehicle 4 use tax). 5 The new motor vehicle registration surcharge is collected 6 at the time a new motor vehicle is first registered with a 7 county treasurer. The department of revenue will administer 8 the surcharge under the same provisions that apply for 9 administration of the fee for new vehicle registration. 10 Revenues from the new motor vehicle registration surcharge 11 are to be deposited in the road use tax fund. 12 -7- LSB 5946YH (3) 83 dea/nh 7/ 7