House File 2691 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON WAYS AND MEANS

                                       (SUCCESSOR TO HF 2562)
                                       (SUCCESSOR TO HSB 628)


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to and increasing motor vehicle and trailer
  2    registration fees and title fees, allocating new revenues from
  3    fees to the TIME=21 fund, requiring the department of
  4    transportation to conduct an analysis of TIME=21 funding and a
  5    study of public transit funding, increasing the motorcycle
  6    operator's license fee and allocating the increased revenue to
  7    the motorcycle rider education fund, reallocating certain fees
  8    collected by the department of transportation, repealing the
  9    use tax on vehicles subject to registration and the use tax on
 10    certain leased motor vehicles, establishing a fee for new
 11    registration of vehicles, providing penalties, and providing
 12    effective and applicability dates.
 13 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
 14 TLSB 5811HZ 82
 15 dea/nh/24

PAG LIN



  1  1                           DIVISION I
  1  2                         MOTOR VEHICLES
  1  3    Section 1.  Section 312.2, Code Supplement 2007, is amended
  1  4 by adding the following new subsection:
  1  5    NEW SUBSECTION.  19.  a.  The treasurer of state, before
  1  6 making the allotments provided for in this section, shall
  1  7 credit annually to the TIME=21 fund created in section 312A.2,
  1  8 the revenue accruing to the road use tax fund from annual
  1  9 motor vehicle registration fees for passenger cars,
  1 10 multipurpose vehicles, and motor trucks in excess of three
  1 11 hundred ninety=two million dollars annually.
  1 12    b.  This subsection is repealed June 30, 2028.
  1 13    Sec. 2.  Section 321.1, Code 2007, is amended by adding the
  1 14 following new subsection:
  1 15    NEW SUBSECTION.  7A.  "Business=trade truck" means a motor
  1 16 truck with an unladen weight of ten thousand pounds or less
  1 17 which is owned by a corporation, limited liability company, or
  1 18 partnership or by a person who files a schedule C or schedule
  1 19 F form with the federal internal revenue service and which is
  1 20 eligible for depreciation under section 167 of the Internal
  1 21 Revenue Code.  If the motor truck is a leased vehicle, the
  1 22 motor truck is a business=trade truck only if the lessee is a
  1 23 corporation, limited liability company, or partnership and the
  1 24 truck is used primarily for purposes of the business
  1 25 operations of the corporation, limited liability company, or
  1 26 partnership or the lessee is a person who files a schedule C
  1 27 or schedule F form with the federal internal revenue service
  1 28 and the truck is used primarily for purposes of the person's
  1 29 own business or farming operation.
  1 30    Sec. 3.  Section 321.109, subsection 1, paragraph a, Code
  1 31 2007, is amended to read as follows:
  1 32    a.  The annual fee for all motor vehicles including
  1 33 vehicles designated by manufacturers as station wagons, and
  1 34 1993 and subsequent model years for year multipurpose
  1 35 vehicles, and 2010 and subsequent model year motor trucks with
  2  1 an unladen weight of ten thousand pounds or less, except motor
  2  2 trucks registered under section 321.122, business=trade
  2  3 trucks, special trucks, motor homes, ambulances, hearses,
  2  4 motorcycles, motorized bicycles, and 1992 and older model
  2  5 years for year multipurpose vehicles, shall be equal to one
  2  6 percent of the value as fixed by the department plus forty
  2  7 cents for each one hundred pounds or fraction thereof of
  2  8 weight of vehicle, as fixed by the department.  The weight of
  2  9 a motor vehicle, fixed by the department for registration
  2 10 purposes, shall include the weight of a battery, heater,
  2 11 bumpers, spare tire, and wheel.  Provided, however, that for
  2 12 any new vehicle purchased in this state by a nonresident for
  2 13 removal to the nonresident's state of residence the purchaser
  2 14 may make application to the county treasurer in the county of
  2 15 purchase for a transit plate for which a fee of ten dollars
  2 16 shall be paid.  And provided, however, that for any used
  2 17 vehicle held by a registered dealer and not currently
  2 18 registered in this state, or for any vehicle held by an
  2 19 individual and currently registered in this state, when
  2 20 purchased in this state by a nonresident for removal to the
  2 21 nonresident's state of residence, the purchaser may make
  2 22 application to the county treasurer in the county of purchase
  2 23 for a transit plate for which a fee of three dollars shall be
  2 24 paid.  The county treasurer shall issue a nontransferable
  2 25 certificate of registration for which no refund shall be
  2 26 allowed; and the transit plates shall be void thirty days
  2 27 after issuance.  Such purchaser may apply for a certificate of
  2 28 title by surrendering the manufacturer's or importer's
  2 29 certificate or certificate of title, duly assigned as provided
  2 30 in this chapter.  In this event, the treasurer in the county
  2 31 of purchase shall, when satisfied with the genuineness and
  2 32 regularity of the application, and upon payment of a fee of
  2 33 ten dollars, issue a certificate of title in the name and
  2 34 address of the nonresident purchaser delivering the title to
  2 35 the owner.  If there is a security interest noted on the
  3  1 title, the county treasurer shall mail to the secured party an
  3  2 acknowledgment of the notation of the security interest.  The
  3  3 county treasurer shall not release a security interest that
  3  4 has been noted on a title issued to a nonresident purchaser as
  3  5 provided in this paragraph.  The application requirements of
  3  6 section 321.20 apply to a title issued as provided in this
  3  7 subsection, except that a natural person who applies for a
  3  8 certificate of title shall provide either the person's social
  3  9 security number, passport number, or driver's license number,
  3 10 whether the license was issued by this state, another state,
  3 11 or another country.  The provisions of this subsection
  3 12 relating to multipurpose vehicles are effective January 1,
  3 13 1993, for all 1993 and subsequent model years.  The annual
  3 14 registration fee for multipurpose vehicles that are 1992 model
  3 15 years and older shall be in accordance with section 321.124.
  3 16    Sec. 4.  Section 321.113, Code 2007, is amended to read as
  3 17 follows:
  3 18    321.113  AUTOMATIC REDUCTION.
  3 19    1.  The annual registration fee for a motor vehicle shall
  3 20 not be automatically reduced under this section unless the
  3 21 registration fee is based on the value and weight of the motor
  3 22 vehicle as provided in section 321.109, subsection 1.
  3 23    2.  If a motor vehicle is more than five seven model years
  3 24 old, the part of the annual registration fee that is based on
  3 25 the value of the vehicle shall be seventy=five percent of the
  3 26 rate as fixed when the motor vehicle was new and the total fee
  3 27 shall not be less than fifty dollars; except that if the
  3 28 registration is a renewal for a vehicle registered to the same
  3 29 owner prior to January 1, 2009, the annual registration fee
  3 30 shall not be more than the fee paid for the previous
  3 31 registration year.
  3 32    3.  If a motor vehicle is more than six nine model years
  3 33 old, the part of the annual registration fee that is based on
  3 34 the value of the vehicle shall be fifty percent of the rate as
  3 35 fixed when the motor vehicle was new and the total fee shall
  4  1 not be less than fifty dollars; except that if the
  4  2 registration is a renewal for a vehicle registered to the same
  4  3 owner prior to January 1, 2009, the annual registration fee
  4  4 shall not be more than the fee paid for the previous
  4  5 registration year.
  4  6    4.  If a 1994 model year or newer motor vehicle is nine
  4  7 model years old or older the registration fee is thirty=five
  4  8 dollars.  For purposes of determining the portion of the
  4  9 registration fee under this subsection that is based upon the
  4 10 value of the motor vehicle, sixty percent of the registration
  4 11 fee is attributable to the value of the vehicle.
  4 12    5.  a.  If a 1993 model year or older motor vehicle has
  4 13 been titled in the same person's name since the vehicle was
  4 14 new or the title to the vehicle was transferred prior to
  4 15 January 1, 2002, the part of the registration fee that is
  4 16 based on the value of the vehicle shall be ten percent of the
  4 17 rate as fixed when the motor vehicle was new.
  4 18    b.  If the title of a 1993 model year or older motor
  4 19 vehicle is transferred to a new owner or if such a motor
  4 20 vehicle is brought into the state on or after January 1, 2002,
  4 21 the registration fee shall not be based on the weight and list
  4 22 price of the motor vehicle, but shall be as follows:
  4 23    (1)  For a motor vehicle that is model year
  4 24 1969 or older:....................................   $  16.00
  4 25    (2)  For a motor vehicle that is model year
  4 26 1970 through 1989:................................   $  23.00
  4 27    (3)  For a motor vehicle that is model year
  4 28 1990 through 1993:................................   $  27.00
  4 29    For purposes of determining the portion of the registration
  4 30 fee under this paragraph "b" that is based upon the value of
  4 31 the motor vehicle, sixty percent of the registration fee is
  4 32 attributable to the value of the vehicle.
  4 33    4.  a.  Except as provided in paragraph "b", if a motor
  4 34 vehicle is twelve model years old or older, the annual
  4 35 registration fee is fifty dollars; except that if the
  5  1 registration is a renewal for a vehicle registered to the same
  5  2 owner prior to January 1, 2009, the annual registration fee
  5  3 shall not be more than the fee paid for the previous
  5  4 registration year.
  5  5    b.  If the registration is a renewal for a motor vehicle
  5  6 registered as an antique vehicle by the same owner prior to
  5  7 January 1, 2009, the annual registration fee shall be
  5  8 twenty=three dollars for a motor vehicle that is model year
  5  9 1970 through 1983 and sixteen dollars for a motor vehicle that
  5 10 is model year 1969 or older.
  5 11    c.  For purposes of determining the portion of an annual
  5 12 registration fee under paragraph "a" or "b" that is based upon
  5 13 the value of the motor vehicle, sixty percent of the annual
  5 14 registration fee is attributable to the value of the vehicle.
  5 15    Sec. 5.  NEW SECTION.  321.120  BUSINESS=TRADE TRUCKS.
  5 16    1.  The annual registration fee for a business=trade truck
  5 17 shall be determined pursuant to section 321.122, subsection 1,
  5 18 paragraph "a".
  5 19    2.  Upon application for a new registration, an owner who
  5 20 registers a motor vehicle as a business=trade truck shall be
  5 21 required to provide proof or affirm that the vehicle meets the
  5 22 definition of a business=trade truck.  The department may
  5 23 adopt rules as necessary to prescribe the documentation
  5 24 required of the applicant as proof or affirmation under this
  5 25 subsection but shall not require that such documentation be
  5 26 notarized.  If requested by the department of transportation
  5 27 or a county treasurer, the department of revenue shall confirm
  5 28 or refute, according to the most recent records available,
  5 29 that an applicant for registration of a business=trade truck
  5 30 is either a corporation, limited liability company, or
  5 31 partnership or a person who files a schedule C or schedule F
  5 32 form for federal income tax purposes and that the corporation,
  5 33 limited liability company, partnership, or person is allowed a
  5 34 depreciation deduction with respect to the vehicle under
  5 35 section 167 of the Internal Revenue Code.
  6  1    3.  Upon approval of the application and payment of the
  6  2 proper fees, the county treasurer shall issue registration
  6  3 plates for the vehicle which distinguish the vehicle as a
  6  4 business=trade truck.
  6  5    4.  If the department determines by audit or other means
  6  6 that a person has registered a vehicle as a business=trade
  6  7 truck that is not qualified for such registration, the person
  6  8 shall be required to pay the difference between the regular
  6  9 annual registration fees owed for the vehicle for each year
  6 10 the vehicle was registered in violation of this section and
  6 11 the fees actually paid.
  6 12    5.  If the department determines by audit or other means
  6 13 that the person had knowingly registered a vehicle as a
  6 14 business=trade truck that is not qualified for such
  6 15 registration, the person shall be required to pay a penalty
  6 16 for improper registration in the amount of seven hundred fifty
  6 17 dollars for each registration year in which the vehicle was
  6 18 registered in violation of this section, not to exceed two
  6 19 thousand two hundred fifty dollars.
  6 20    Sec. 6.  Section 321.121, Code 2007, is amended to read as
  6 21 follows:
  6 22    321.121  SPECIAL TRUCKS FOR FARM USE.
  6 23    1.  a.  Except as provided in paragraph "b", the annual
  6 24 registration fee for a special truck with a gross weight of
  6 25 six tons shall be one hundred dollars, and the annual
  6 26 registration fee for a special truck with a gross weight
  6 27 exceeding six tons but not exceeding eighteen tons shall be as
  6 28 follows:
  6 29                                             The annual
  6 30 For a gross             And not            registration
  6 31 weight exceeding:      exceeding:          fee shall be:
  6 32     6 Tons ...........    7 Tons ...........   $  125
  6 33     7 Tons ...........    8 Tons ...........   $  155
  6 34     8 Tons ...........    9 Tons ...........   $  170
  6 35     9 Tons ...........   10 Tons ...........   $  190
  7  1    10 Tons ...........   11 Tons ...........   $  205
  7  2    11 Tons ...........   12 Tons ...........   $  225
  7  3    12 Tons ...........   13 Tons ...........   $  245
  7  4    13 Tons ...........   14 Tons ...........   $  265
  7  5    14 Tons ...........   15 Tons ...........   $  280
  7  6    15 Tons ...........   16 Tons ...........   $  295
  7  7    16 Tons ...........   17 Tons ...........   $  305
  7  8    17 Tons ...........   18 Tons ...........   $  315
  7  9    b.  The If the registration is a renewal for a special
  7 10 truck registered to the same owner prior to January 1, 2009,
  7 11 the annual registration fee for a special truck shall be
  7 12 eighty dollars for a gross weight of six tons, one hundred
  7 13 dollars for a gross weight of seven tons, one hundred twenty
  7 14 dollars for a gross weight of eight tons, and in addition,
  7 15 fifteen dollars for each ton over eight tons and not exceeding
  7 16 eighteen tons.
  7 17    c.  The registration fee for a special truck with a gross
  7 18 weight registration exceeding eighteen tons but not exceeding
  7 19 nineteen tons shall be three hundred twenty=five dollars and
  7 20 for a gross weight registration exceeding nineteen tons but
  7 21 not exceeding twenty tons the registration fee shall be three
  7 22 hundred seventy=five dollars.
  7 23    d.  The additional registration fee for a special truck for
  7 24 a gross weight registration in excess of twenty tons is
  7 25 twenty=five dollars for each ton over twenty tons and not
  7 26 exceeding thirty=two tons.
  7 27    2.  A person convicted of or found by audit to be using a
  7 28 motor vehicle registered as a special truck for any purpose
  7 29 other than permitted by section 321.1, subsection 76, shall,
  7 30 in addition to any other penalty imposed by law, be required
  7 31 to pay regular motor vehicle registration fees upon such motor
  7 32 vehicle.
  7 33    Sec. 7.  Section 321.122, subsection 1, Code 2007, is
  7 34 amended to read as follows:
  7 35    1.  The annual registration fee for truck tractors, road
  8  1 tractors, and motor trucks, except 2010 and subsequent model
  8  2 year motor trucks required to be registered under section
  8  3 321.109 and motor trucks registered as special trucks, shall
  8  4 be based on the combined gross weight of the vehicle or
  8  5 combination of vehicles.  All such trucks, truck tractors, or
  8  6 road tractors registered under this section shall be
  8  7 registered for a gross weight equal to or in excess of the
  8  8 unladen weight of the vehicle or combination of vehicles.  The
  8  9 annual registration fee for such vehicles or combination of
  8 10 vehicles, except special trucks, shall be: the applicable fee
  8 11 under paragraph "a" or "b".
  8 12    a.  (1)  For a combined gross weight of three tons or less
  8 13 sixty=five dollars and a vehicle which is more than ten model
  8 14 years old fifty=five dollars and a vehicle which is more than
  8 15 thirteen model years old forty=five dollars and a vehicle
  8 16 which is more than fifteen years old thirty=five dollars For a
  8 17 combined gross weight of three tons or less, the annual
  8 18 registration fee is one hundred fifty dollars; for such a
  8 19 vehicle more than seven model years old, one hundred twenty
  8 20 dollars; for such a vehicle more than nine model years old,
  8 21 one hundred dollars; and for such a vehicle twelve model years
  8 22 old or older, fifty dollars.
  8 23    b.  (2)  For a combined gross weight exceeding three tons,
  8 24 the annual registration fee shall be as set forth in the
  8 25 following schedule:
  8 26 For a combined          And not               The annual
  8 27 gross weight           exceeding:            registration
  8 28 exceeding:                                   fee shall be:
  8 29     3 Tons ...........    4 Tons ...........   $   80
  8 30                                                   165
  8 31     4 Tons ...........    5 Tons ...........   $   90
  8 32                                                   180
  8 33     5 Tons ...........    6 Tons ...........   $  105
  8 34                                                   195
  8 35     6 Tons ...........    7 Tons ...........   $  130
  9  1                                                   215
  9  2     7 Tons ...........    8 Tons ...........   $  165
  9  3                                                   220
  9  4     8 Tons ...........    9 Tons ...........   $  200
  9  5                                                   225
  9  6     9 Tons ...........   10 Tons ...........   $  235
  9  7    10 Tons ...........   11 Tons ...........   $  270
  9  8    11 Tons ...........   12 Tons ...........   $  305
  9  9    12 Tons ...........   13 Tons ...........   $  340
  9 10    13 Tons ...........   14 Tons ...........   $  375
  9 11    14 Tons ...........   15 Tons ...........   $  445
  9 12    15 Tons ...........   16 Tons ...........   $  485
  9 13    16 Tons ...........   17 Tons ...........   $  525
  9 14    17 Tons ...........   18 Tons ...........   $  565
  9 15    18 Tons ...........   19 Tons ...........   $  610
  9 16    19 Tons ...........   20 Tons ...........   $  675
  9 17    20 Tons ...........   21 Tons ...........   $  715
  9 18    21 Tons ...........   22 Tons ...........   $  755
  9 19    22 Tons ...........   23 Tons ...........   $  795
  9 20    23 Tons ...........   24 Tons ...........   $  835
  9 21    24 Tons ...........   25 Tons ...........   $  965
  9 22    25 Tons ...........   26 Tons ...........   $1,010
  9 23    26 Tons ...........   27 Tons ...........   $1,060
  9 24    27 Tons ...........   28 Tons ...........   $1,105
  9 25    28 Tons ...........   29 Tons ...........   $1,150
  9 26    29 Tons ...........   30 Tons ...........   $1,200
  9 27    30 Tons ...........   31 Tons ...........   $1,245
  9 28    31 Tons ...........   32 Tons ...........   $1,295
  9 29    32 Tons ...........   33 Tons ...........   $1,340
  9 30    33 Tons ...........   34 Tons ...........   $1,415
  9 31    34 Tons ...........   35 Tons ...........   $1,465
  9 32    35 Tons ...........   36 Tons ...........   $1,510
  9 33    36 Tons ...........   37 Tons ...........   $1,555
  9 34    37 Tons ...........   38 Tons ...........   $1,605
  9 35    38 Tons ...........   39 Tons ...........   $1,650
 10  1    39 Tons ...........   40 Tons ...........   $1,695
 10  2    b.  If the registration is a renewal for a motor vehicle
 10  3 with a combined gross weight of nine tons or less registered
 10  4 to the same owner prior to January 1, 2009, the following
 10  5 applies:
 10  6    (1)  For a combined gross weight of three tons or less, the
 10  7 annual registration fee is sixty=five dollars; for such a
 10  8 vehicle which is more than ten model years old, fifty=five
 10  9 dollars; for such a vehicle which is more than thirteen model
 10 10 years old, forty=five dollars; and for such a vehicle which is
 10 11 more than fifteen model years old, thirty=five dollars.
 10 12    (2)  For a combined gross weight exceeding three tons but
 10 13 not exceeding nine tons, the annual registration fee shall be
 10 14 as set forth in the following schedule:
 10 15 For a combined          And not               The annual
 10 16 gross weight           exceeding:            registration
 10 17 exceeding:                                   fee shall be:
 10 18    3 Tons ...........    4 Tons ...........   $   80
 10 19    4 Tons ...........    5 Tons ...........   $   90
 10 20    5 Tons ...........    6 Tons ...........   $  105
 10 21    6 Tons ...........    7 Tons ...........   $  130
 10 22    7 Tons ...........    8 Tons ...........   $  165
 10 23    8 Tons ...........    9 Tons ...........   $  200
 10 24    c.  For a combined gross weight exceeding forty tons, the
 10 25 annual registration fee shall be one thousand six hundred
 10 26 ninety=five dollars plus eighty dollars for each ton over
 10 27 forty tons.
 10 28    Sec. 8.  Section 321.152, Code 2007, is amended to read as
 10 29 follows:
 10 30    321.152  FEE FOR COLLECTION FEES RETAINED BY COUNTY.
 10 31    1.  A county treasurer may retain for deposit in the county
 10 32 general fund the following:
 10 33    1.  a.  Four percent of the total collection for each
 10 34 annual or semiannual vehicle registration and each duplicate
 10 35 registration card or plate issued.
 11  1    2.  b.  Two dollars and fifty cents from each fee collected
 11  2 for certificates of title.
 11  3    3.  c.  Forty percent of all fees collected for certified
 11  4 copies of certificates of title.
 11  5    4.  d.  Sixty percent of all fees collected for perfection
 11  6 of security interests.
 11  7    e.  Twenty=five percent of each penalty collected for
 11  8 improper business=trade truck registration under section
 11  9 321.120, subsection 5.
 11 10    2.  The moneys retained under subsection 1 shall be
 11 11 deducted, and reported to the department when the county
 11 12 treasurer transfers the money collected under this chapter.
 11 13 However, a deduction is not lawful unless the county treasurer
 11 14 has complied with sections 321.24 and 321.153.
 11 15    3.  This section does not apply to fees collected or
 11 16 retained by a county treasurer pursuant to participation in
 11 17 county issuance of driver's licenses under chapter 321M.
 11 18    Sec. 9.  Section 422.20, subsection 3, unnumbered paragraph
 11 19 1, Code 2007, is amended to read as follows:
 11 20    Unless otherwise expressly permitted by section 8A.504,
 11 21 section 421.17, subsections 22, 23, and 26, sections 252B.9,
 11 22 321.120, 421.19, 421.28, 422.72, and 452A.63, and this
 11 23 section, a tax return, return information, or investigative or
 11 24 audit information shall not be divulged to any person or
 11 25 entity, other than the taxpayer, the department, or internal
 11 26 revenue service for use in a matter unrelated to tax
 11 27 administration.
 11 28    Sec. 10.  Section 422.72, subsection 3, unnumbered
 11 29 paragraph 1, Code 2007, is amended to read as follows:
 11 30    Unless otherwise expressly permitted by section 8A.504,
 11 31 section 421.17, subsections 22, 23, and 26, sections 252B.9,
 11 32 321.120, 421.19, 421.28, 422.20, and 452A.63, and this
 11 33 section, a tax return, return information, or investigative or
 11 34 audit information shall not be divulged to any person or
 11 35 entity, other than the taxpayer, the department, or internal
 12  1 revenue service for use in a matter unrelated to tax
 12  2 administration.
 12  3    Sec. 11.  EFFECTIVE DATE AND APPLICABILITY.  This division
 12  4 of this Act takes effect January 1, 2009, and applies to
 12  5 vehicles registered for registration years beginning in 2009
 12  6 and subsequent years.
 12  7                           DIVISION II
 12  8                           TITLE FEES
 12  9    Sec. 12.  Section 312.2, Code Supplement 2007, is amended
 12 10 by adding the following new subsection:
 12 11    NEW SUBSECTION.  20.  a.  The treasurer of state, before
 12 12 making the allotments provided for in this section, shall
 12 13 credit monthly to the TIME=21 fund created in section 312A.2,
 12 14 an amount equal to ten dollars from each fee for issuance of a
 12 15 certificate of title collected pursuant to sections 321.20;
 12 16 321.20A; 321.23; 321.42; 321.46, other than a title issued for
 12 17 a returned vehicle under section 322G.12; section 321.47; and
 12 18 section 321.109 and an amount equal to eight dollars from each
 12 19 fee collected for issuance of a certificate of title pursuant
 12 20 to section 321.46 for a returned vehicle under section 322G.12
 12 21 and from each fee collected for issuance of a salvage
 12 22 certificate of title pursuant to section 321.52.
 12 23    b.  This subsection is repealed June 30, 2028.
 12 24    Sec. 13.  Section 321.20, subsection 1, unnumbered
 12 25 paragraph 1, Code 2007, is amended to read as follows:
 12 26    Except as provided in this chapter, an owner of a vehicle
 12 27 subject to registration shall make application to the county
 12 28 treasurer of the county of the owner's residence, or if a
 12 29 nonresident, to the county treasurer of the county where the
 12 30 primary users of the vehicle are located, or if a lessor of
 12 31 the vehicle pursuant to chapter 321F which vehicle has a gross
 12 32 vehicle weight of less than ten thousand pounds, to the county
 12 33 treasurer of the county of the lessee's residence, or if a
 12 34 firm, association, or corporation with vehicles in multiple
 12 35 counties, the owner may make application to the county
 13  1 treasurer of the county where the primary user of the vehicle
 13  2 is located, for the registration and issuance of a certificate
 13  3 of title for the vehicle upon the appropriate form furnished
 13  4 by the department.  However, upon the transfer of ownership,
 13  5 the owner of a vehicle subject to the proportional
 13  6 registration provisions of chapter 326 shall make application
 13  7 for registration and issuance of a certificate of title to
 13  8 either the department or the appropriate county treasurer.
 13  9 The application shall be accompanied by a fee of ten twenty
 13 10 dollars, and shall bear the owner's signature.  A nonresident
 13 11 owner of two or more vehicles subject to registration may make
 13 12 application for registration and issuance of a certificate of
 13 13 title for all vehicles subject to registration to the county
 13 14 treasurer of the county where the primary user of any of the
 13 15 vehicles is located.  The owner of a mobile home or
 13 16 manufactured home shall make application for a certificate of
 13 17 title under this section from the county treasurer of the
 13 18 county where the mobile home or manufactured home is located.
 13 19 The application shall contain:
 13 20    Sec. 14.  Section 321.20A, subsection 1, Code 2007, is
 13 21 amended to read as follows:
 13 22    1.  Notwithstanding other provisions of this chapter, the
 13 23 owner of a commercial vehicle subject to the proportional
 13 24 registration provisions of chapter 326 may make application to
 13 25 the department or the appropriate county treasurer for a
 13 26 certificate of title.  The application for certificate of
 13 27 title shall be made within thirty days of purchase or transfer
 13 28 and shall be accompanied by a ten twenty dollar title fee and
 13 29 the appropriate use tax.  The department or the county
 13 30 treasurer shall deliver the certificate of title to the owner
 13 31 if there is no security interest.  If there is a security
 13 32 interest, the title, when issued, shall be delivered to the
 13 33 first secured party.  Delivery may be made using electronic
 13 34 means.
 13 35    Sec. 15.  Section 321.23, subsections 1 and 4, Code 2007,
 14  1 are amended to read as follows:
 14  2    1.  If the vehicle to be registered is a specially
 14  3 constructed, reconstructed, or foreign vehicle, such fact
 14  4 shall be stated in the application.  A fee of ten twenty
 14  5 dollars shall be paid by the person making the application
 14  6 upon issuance of a certificate of title by the county
 14  7 treasurer.  For a specially constructed or reconstructed motor
 14  8 vehicle subject to registration, the application shall be
 14  9 accompanied by a statement from the department authorizing the
 14 10 motor vehicle to be titled and registered in this state.  The
 14 11 department shall cause a physical inspection to be made of all
 14 12 specially constructed or reconstructed motor vehicles, upon
 14 13 application for a certificate of title by the owner, to
 14 14 determine whether the motor vehicle complies with the
 14 15 definition of specially constructed motor vehicle or
 14 16 reconstructed motor vehicle in this chapter and to determine
 14 17 that the integral component parts are properly identified and
 14 18 that the rightful ownership is established before issuing the
 14 19 owner the authority to have the motor vehicle registered and
 14 20 titled.  The purpose of the physical inspection under this
 14 21 section is not to determine whether the motor vehicle is in a
 14 22 condition safe to operate.  The owner of a specially
 14 23 constructed or reconstructed vehicle shall apply for a
 14 24 certificate of title and registration for the vehicle at the
 14 25 county treasurer's office within thirty days of the
 14 26 inspection.  For a foreign vehicle which has been registered
 14 27 outside this state, the owner shall surrender to the treasurer
 14 28 all registration plates, registration cards, and certificates
 14 29 of title, or if the vehicle to be registered is from a
 14 30 nontitle state, the evidence of foreign registration and
 14 31 ownership as may be prescribed by the department except as
 14 32 provided in subsection 2.
 14 33    4.  A vehicle which does not meet the equipment
 14 34 requirements of this chapter due to the particular use for
 14 35 which it is designed or intended, may be registered by the
 15  1 department upon payment of appropriate fees and after
 15  2 inspection and certification by the department that the
 15  3 vehicle is not in an unsafe condition.  A person is not
 15  4 required to have a certificate of title to register a vehicle
 15  5 under this subsection.  If the owner elects to have a
 15  6 certificate of title issued for the vehicle, a fee of ten
 15  7 twenty dollars shall be paid by the person making the
 15  8 application upon issuance of a certificate of title.  If the
 15  9 department's inspection reveals that the vehicle may be safely
 15 10 operated only under certain conditions or on certain types of
 15 11 roadways, the department may restrict the registration to
 15 12 limit operation of the vehicle to the appropriate conditions
 15 13 or roadways.  This subsection does not apply to snowmobiles as
 15 14 defined in section 321G.1.  Section 321.382 does not apply to
 15 15 a vehicle registered under this subsection which is operated
 15 16 exclusively by a person with a disability who has obtained a
 15 17 persons with disabilities parking permit as provided in
 15 18 section 321L.2, if the persons with disabilities parking
 15 19 permit is carried in or on the vehicle and shown to a peace
 15 20 officer on request.
 15 21    Sec. 16.  Section 321.42, subsection 2, paragraph a, Code
 15 22 2007, is amended to read as follows:
 15 23    a.  If a certificate of title is lost or destroyed, the
 15 24 owner or lienholder shall apply for a replacement copy of the
 15 25 original certificate of title.  The owner or lienholder of a
 15 26 motor vehicle may also apply for a replacement copy of the
 15 27 original certificate of title upon surrender of the original
 15 28 certificate of title with the application.  The application
 15 29 shall be made to the department or county treasurer who issued
 15 30 the original certificate of title.  The application shall be
 15 31 signed by the owner or lienholder and accompanied by a fee of
 15 32 ten twenty dollars.
 15 33    Sec. 17.  Section 321.46, subsection 2, Code 2007, is
 15 34 amended to read as follows:
 15 35    2.  Upon filing the application for a new registration and
 16  1 a new title, the applicant shall pay a title fee of ten twenty
 16  2 dollars and a registration fee prorated for the remaining
 16  3 unexpired months of the registration year.  A manufacturer
 16  4 applying for a certificate of title pursuant to section
 16  5 322G.12 shall pay a title fee of two ten dollars.  However, a
 16  6 title fee shall not be charged to a manufactured or mobile
 16  7 home retailer applying for a certificate of title for a used
 16  8 mobile home or manufactured home, titled in Iowa, as required
 16  9 under section 321.45, subsection 4.  The county treasurer, if
 16 10 satisfied of the genuineness and regularity of the
 16 11 application, and in the case of a mobile home or manufactured
 16 12 home, that taxes are not owing under chapter 435, and that
 16 13 applicant has complied with all the requirements of this
 16 14 chapter, shall issue a new certificate of title and, except
 16 15 for a mobile home, manufactured home, or a vehicle returned to
 16 16 and accepted by a manufacturer as described in section
 16 17 322G.12, a registration card to the purchaser or transferee,
 16 18 shall cancel the prior registration for the vehicle, and shall
 16 19 forward the necessary copies to the department on the date of
 16 20 issuance, as prescribed in section 321.24.  Mobile homes or
 16 21 manufactured homes titled under chapter 448 that have been
 16 22 subject under section 446.18 to a public bidder sale in a
 16 23 county shall be titled in the county's name, with no fee, and
 16 24 the county treasurer shall issue the title.
 16 25    Sec. 18.  Section 321.47, unnumbered paragraph 1, Code
 16 26 2007, is amended to read as follows:
 16 27    If ownership of a vehicle is transferred by operation of
 16 28 law upon inheritance, devise or bequest, dissolution decree,
 16 29 order in bankruptcy, insolvency, replevin, foreclosure or
 16 30 execution sale, abandoned vehicle sale, or when the engine of
 16 31 a motor vehicle is replaced by another engine, or a vehicle is
 16 32 sold or transferred to satisfy an artisan's lien as provided
 16 33 in chapter 577, a landlord's lien as provided in chapter 570,
 16 34 a storage lien as provided in chapter 579, a judgment in an
 16 35 action for abandonment of a manufactured or mobile home as
 17  1 provided in chapter 555B, upon presentation of an affidavit
 17  2 relating to the disposition of a valueless mobile, modular, or
 17  3 manufactured home as provided in chapter 555C, or repossession
 17  4 is had upon default in performance of the terms of a security
 17  5 agreement, the county treasurer in the transferee's county of
 17  6 residence or, in the case of a mobile home or manufactured
 17  7 home, the county treasurer of the county where the mobile home
 17  8 or manufactured home is located, upon the surrender of the
 17  9 prior certificate of title or the manufacturer's or importer's
 17 10 certificate, or when that is not possible, upon presentation
 17 11 of satisfactory proof to the county treasurer of ownership and
 17 12 right of possession to the vehicle and upon payment of a fee
 17 13 of ten twenty dollars and the presentation of an application
 17 14 for registration and certificate of title, may issue to the
 17 15 applicant a registration card for the vehicle and a
 17 16 certificate of title to the vehicle.  A person entitled to
 17 17 ownership of a vehicle under a decree of dissolution shall
 17 18 surrender a reproduction of a certified copy of the
 17 19 dissolution and upon fulfilling the other requirements of this
 17 20 chapter is entitled to a certificate of title and registration
 17 21 receipt issued in the person's name.
 17 22    Sec. 19.  Section 321.52, subsection 4, paragraph a, Code
 17 23 Supplement 2007, is amended to read as follows:
 17 24    a.  A vehicle rebuilder or a person engaged in the business
 17 25 of buying, selling, or exchanging vehicles of a type required
 17 26 to be registered in this state, upon acquisition of a wrecked
 17 27 or salvage vehicle, shall surrender the certificate of title
 17 28 or manufacturer's or importer's statement of origin properly
 17 29 assigned, together with an application for a salvage
 17 30 certificate of title, to the county treasurer of the county of
 17 31 residence of the purchaser or transferee within thirty days
 17 32 after the date of assignment of the certificate of title for
 17 33 the wrecked or salvage motor vehicle.  This subsection applies
 17 34 only to vehicles with a fair market value of five hundred
 17 35 dollars or more, based on the value before the vehicle became
 18  1 wrecked or salvage.  Upon payment of a fee of two ten dollars,
 18  2 the county treasurer shall issue a salvage certificate of
 18  3 title which shall bear the word "SALVAGE" stamped or printed
 18  4 on the face of the title in a manner prescribed by the
 18  5 department.  A salvage certificate of title may be assigned to
 18  6 an educational institution, a new motor vehicle dealer
 18  7 licensed under chapter 322, a person engaged in the business
 18  8 of purchasing bodies, parts of bodies, frames or component
 18  9 parts of vehicles for sale as scrap metal, a salvage pool, or
 18 10 an authorized vehicle recycler licensed under chapter 321H.
 18 11 An authorized vehicle recycler licensed under chapter 321H or
 18 12 a new motor vehicle dealer licensed under chapter 322 may
 18 13 assign or reassign an Iowa salvage certificate of title or a
 18 14 salvage certificate of title from another state to any person,
 18 15 and the provisions of section 321.24, subsection 5, requiring
 18 16 issuance of an Iowa salvage certificate of title shall not
 18 17 apply.  A vehicle on which ownership has transferred to an
 18 18 insurer of the vehicle as a result of a settlement with the
 18 19 owner of the vehicle arising out of damage to, or unrecovered
 18 20 theft of, the vehicle shall be deemed to be a wrecked or
 18 21 salvage vehicle and the insurer shall comply with this
 18 22 subsection to obtain a salvage certificate of title within
 18 23 thirty days after the date of assignment of the certificate of
 18 24 title of the vehicle.
 18 25    Sec. 20.  Section 321.109, subsection 1, paragraph a, Code
 18 26 2007, is amended to read as follows:
 18 27    a.  The annual fee for all motor vehicles including
 18 28 vehicles designated by manufacturers as station wagons, and
 18 29 1993 and subsequent model years for multipurpose vehicles,
 18 30 except motor trucks, motor homes, ambulances, hearses,
 18 31 motorcycles, motorized bicycles, and 1992 and older model
 18 32 years for multipurpose vehicles, shall be equal to one percent
 18 33 of the value as fixed by the department plus forty cents for
 18 34 each one hundred pounds or fraction thereof of weight of
 18 35 vehicle, as fixed by the department.  The weight of a motor
 19  1 vehicle, fixed by the department for registration purposes,
 19  2 shall include the weight of a battery, heater, bumpers, spare
 19  3 tire, and wheel.  Provided, however, that for any new vehicle
 19  4 purchased in this state by a nonresident for removal to the
 19  5 nonresident's state of residence the purchaser may make
 19  6 application to the county treasurer in the county of purchase
 19  7 for a transit plate for which a fee of ten dollars shall be
 19  8 paid.  And provided, however, that for any used vehicle held
 19  9 by a registered dealer and not currently registered in this
 19 10 state, or for any vehicle held by an individual and currently
 19 11 registered in this state, when purchased in this state by a
 19 12 nonresident for removal to the nonresident's state of
 19 13 residence, the purchaser may make application to the county
 19 14 treasurer in the county of purchase for a transit plate for
 19 15 which a fee of three dollars shall be paid.  The county
 19 16 treasurer shall issue a nontransferable certificate of
 19 17 registration for which no refund shall be allowed; and the
 19 18 transit plates shall be void thirty days after issuance.  Such
 19 19 purchaser may apply for a certificate of title by surrendering
 19 20 the manufacturer's or importer's certificate or certificate of
 19 21 title, duly assigned as provided in this chapter.  In this
 19 22 event, the treasurer in the county of purchase shall, when
 19 23 satisfied with the genuineness and regularity of the
 19 24 application, and upon payment of a fee of ten twenty dollars,
 19 25 issue a certificate of title in the name and address of the
 19 26 nonresident purchaser delivering the title to the owner.  If
 19 27 there is a security interest noted on the title, the county
 19 28 treasurer shall mail to the secured party an acknowledgment of
 19 29 the notation of the security interest.  The county treasurer
 19 30 shall not release a security interest that has been noted on a
 19 31 title issued to a nonresident purchaser as provided in this
 19 32 paragraph.  The application requirements of section 321.20
 19 33 apply to a title issued as provided in this subsection, except
 19 34 that a natural person who applies for a certificate of title
 19 35 shall provide either the person's social security number,
 20  1 passport number, or driver's license number, whether the
 20  2 license was issued by this state, another state, or another
 20  3 country.  The provisions of this subsection relating to
 20  4 multipurpose vehicles are effective January 1, 1993, for all
 20  5 1993 and subsequent model years.  The annual registration fee
 20  6 for multipurpose vehicles that are 1992 model years and older
 20  7 shall be in accordance with section 321.124.
 20  8    Sec. 21.  EFFECTIVE DATE.  This division of this Act takes
 20  9 effect January 1, 2009.
 20 10                          DIVISION III
 20 11                    TRAILER REGISTRATION FEES
 20 12    Sec. 22.  Section 312.2, Code Supplement 2007, is amended
 20 13 by adding the following new subsection:
 20 14    NEW SUBSECTION.  21.  a.  The treasurer of state, before
 20 15 making the allotments provided for in this section, shall
 20 16 credit monthly to the TIME=21 fund created in section 312A.2
 20 17 an amount equal to ten dollars from each trailer registration
 20 18 fee collected pursuant to section 321.123, subsection 1,
 20 19 paragraph "a", subparagraph (1), twenty dollars from each
 20 20 trailer registration fee collected pursuant to section
 20 21 321.123, subsection 1, paragraph "a", subparagraph (2), and
 20 22 one=third of the amount collected from trailer registration
 20 23 fees pursuant to section 321.123, subsection 2.
 20 24    b.  This subsection is repealed June 30, 2028.
 20 25    Sec. 23.  Section 321.122, subsection 2, Code 2007, is
 20 26 amended by striking the subsection.
 20 27    Sec. 24.  Section 321.123, Code 2007, is amended to read as
 20 28 follows:
 20 29    321.123  TRAILERS.
 20 30    1.  a.  All trailers except farm trailers, mobile homes,
 20 31 and manufactured homes, unless otherwise provided in this
 20 32 section, are subject to a an annual registration fee of ten
 20 33 dollars. as follows:
 20 34    (1)  For trailers with an empty weight of two thousand
 20 35 pounds or less, the annual registration fee is twenty dollars.
 21  1    (2)  For trailers with an empty weight in excess of two
 21  2 thousand pounds, the annual registration fee is thirty
 21  3 dollars.
 21  4    b.  Trailers for which the empty weight is two thousand
 21  5 pounds or less are exempt from the certificate of title and
 21  6 lien provisions of this chapter.
 21  7    c.  For trailers and semitrailers licensed under chapter
 21  8 326, the annual registration fee for the permanent
 21  9 registration plate shall be the applicable fee under paragraph
 21 10 "a".  The registration fees for a permanent registration
 21 11 plate, at the option of the registrant, shall be remitted to
 21 12 the department at five=year intervals or on an annual basis.
 21 13 Fees collected under this section shall not be reduced or
 21 14 prorated under chapter 326.
 21 15    1. 2.  a.  Travel trailers and fifth=wheel travel trailers,
 21 16 except those in manufacturer's or dealer's stock, shall be
 21 17 subject to an annual fee of twenty thirty cents per square
 21 18 foot of floor space computed on the exterior overall
 21 19 measurements, but excluding three feet occupied by any trailer
 21 20 hitch as provided by and certified to by the owner, to the
 21 21 nearest whole dollar.  When a travel trailer or fifth=wheel
 21 22 travel trailer is registered in Iowa for the first time or
 21 23 when title is transferred, the annual fee shall be prorated on
 21 24 a monthly basis.  The annual fee shall be reduced to
 21 25 seventy=five percent of the full fee after the vehicle is more
 21 26 than six model years old.
 21 27    b.  A travel trailer may be stored under section 321.134,
 21 28 provided the travel trailer is not used for human habitation
 21 29 for any period during storage and is not moved upon the
 21 30 highways of the state.  A travel trailer stored under section
 21 31 321.134 is not subject to a manufactured or mobile home tax
 21 32 assessed under chapter 435.
 21 33    2. 3.  Motor trucks or truck tractors pulling trailers or
 21 34 semitrailers shall be registered for the combined gross weight
 21 35 of the motor truck or truck tractor and trailer or
 22  1 semitrailer, except that:
 22  2    a.  Motor trucks registered for six tons or less not used
 22  3 for hire, pulling trailers or semitrailers used by a person
 22  4 engaged in farming to transport commodities produced by the
 22  5 owner, or to transport commodities or livestock purchased by
 22  6 the owner for use in the owner's own farming operation or used
 22  7 by any person to transport horses shall not be subject to
 22  8 registration for the gross weight of such trailer or
 22  9 semitrailer provided the combined gross weight does not exceed
 22 10 twelve tons, plus the tolerance provided for in section
 22 11 321.466.
 22 12    b.  Motor trucks registered for six tons or less not used
 22 13 for hire, pulling trailers or semitrailers used by a person in
 22 14 the person's own operations shall not be subject to
 22 15 registration for the gross weight of such trailer or
 22 16 semitrailer provided the combined gross weight does not exceed
 22 17 eight tons, plus the tolerance provided for in section
 22 18 321.466.
 22 19    Sec. 25.  EFFECTIVE DATE AND APPLICABILITY.  This division
 22 20 of this Act takes effect January 1, 2009, and applies to
 22 21 trailers registered for registration years beginning in 2009
 22 22 and subsequent years.
 22 23                           DIVISION IV
 22 24                             STUDIES
 22 25    Sec. 26.  TIME=21 FUNDING ANALYSIS.  The department of
 22 26 transportation shall conduct an analysis of the additional
 22 27 revenues necessary to provide at least two hundred million
 22 28 dollars annually to the TIME=21 fund by FY 2011=2012.  The
 22 29 analysis shall include but is not limited to the amount of
 22 30 excise tax levied on motor fuel and adjustments that might be
 22 31 made to various fees collected by the department in order to
 22 32 create an appropriate balance of taxes and fees paid by Iowa
 22 33 drivers and out=of=state drivers.  The department shall submit
 22 34 a report to the governor and the general assembly on or before
 22 35 December 31, 2008, regarding its analysis.
 23  1    Sec. 27.  PUBLIC TRANSIT FUNDING STUDY.  The department of
 23  2 transportation, in cooperation with the office of energy
 23  3 independence and the department of natural resources, shall
 23  4 review the current revenues available for support of public
 23  5 transit and the sufficiency of those revenues to meet future
 23  6 needs.  The review shall include but is not limited to
 23  7 identifying transit improvements needed to meet state energy
 23  8 independence goals and an assessment of how the state's
 23  9 support of public transit is positioned to meet the mobility
 23 10 needs of Iowa's growing senior population.  The department
 23 11 shall submit a report to the governor and the general assembly
 23 12 on or before December 1, 2009.
 23 13                           DIVISION V
 23 14                MOTORCYCLE OPERATOR'S LICENSE FEE
 23 15    Sec. 28.  Section 312.2, subsection 16, Code Supplement
 23 16 2007, is amended to read as follows:
 23 17    16.  The treasurer of state, before making the allotments
 23 18 provided for in this section, shall credit monthly from the
 23 19 road use tax fund to the motorcycle rider education fund
 23 20 established in section 321.180B, an amount equal to one dollar
 23 21 two dollars per year of license validity for each issued or
 23 22 renewed driver's license which is valid for the operation of a
 23 23 motorcycle.  Moneys credited to the motorcycle rider education
 23 24 fund under this subsection shall be taken from moneys credited
 23 25 to the road use tax fund under section 423.43.
 23 26    Sec. 29.  Section 321.191, subsection 5, Code 2007, is
 23 27 amended to read as follows:
 23 28    5.  LICENSES VALID FOR MOTORCYCLES.  An additional fee of
 23 29 one dollar two dollars per year of license validity is
 23 30 required to issue a license valid to operate a motorcycle.
 23 31    Sec. 30.  Section 321.145, subsection 2, paragraph b,
 23 32 subparagraph (2), if enacted by the Eighty=second General
 23 33 Assembly, 2008 Session, is amended to read as follows:
 23 34    (2)  An amount equal to one dollar two dollars per year of
 23 35 license validity for each issued or renewed driver's license
 24  1 which is valid for the operation of a motorcycle shall be
 24  2 credited to the motorcycle rider education fund established
 24  3 under section 321.180B.
 24  4    Sec. 31.  If section 312.2, subsection 16, Code Supplement
 24  5 2007, is stricken by a provision in another division of this
 24  6 Act or another Act of the 2008 Session of the Eighty=second
 24  7 General Assembly, the section in this division of this Act
 24  8 amending section 312.2, subsection 16, Code Supplement 2007,
 24  9 is void.
 24 10                           DIVISION VI
 24 11              USE TAX ON MOTOR VEHICLES REPEALED ==
 24 12                FEE FOR NEW REGISTRATION IMPOSED
 24 13                             PART 1
 24 14                        ROAD USE TAX FUND
 24 15    Sec. 32.  Section 312.1, Code 2007, is amended to read as
 24 16 follows:
 24 17    312.1  FUND CREATED.
 24 18    1.  There is hereby created, in the state treasury, a road
 24 19 use tax fund.  Said The road use tax fund shall embrace and
 24 20 include all of the following:
 24 21    1.  a.  All the net proceeds of the registration of motor
 24 22 vehicles under chapter 321.
 24 23    2.  b.  All the net proceeds of the motor fuel tax or
 24 24 license fees under chapter 452A.
 24 25    3.  c.  Revenue derived from the excise tax imposed upon
 24 26 the rental of automobiles, under chapter 423C, as to the
 24 27 extent provided by section 423C.5 321.145, subsection 2.
 24 28    4.  To the extent provided in section 423.43, subsection 1,
 24 29 paragraph "b", from revenue derived from the use tax, under
 24 30 chapter 423 on motor vehicles, trailers, and motor vehicle
 24 31 accessories and equipment.
 24 32    5.  d.  Revenue derived from the use tax collected under
 24 33 section 423.26, to the extent provided under section 321.145,
 24 34 subsection 2.
 24 35    e.  Any other funds which may by law be credited to the
 25  1 road use tax fund.
 25  2    2.  Notwithstanding section 12C.7, subsection 2, interest
 25  3 or earnings on investments or time deposits of the moneys in
 25  4 the road use tax fund and the funds to which moneys from the
 25  5 road use tax fund are credited shall be credited to the road
 25  6 use tax fund.
 25  7    Sec. 33.  Section 312.2, subsections 14 and 16, Code
 25  8 Supplement 2007, are amended by striking the subsections.
 25  9    Sec. 34.  Section 312.2, Code Supplement 2007, is amended
 25 10 by adding the following new subsection:
 25 11    NEW SUBSECTION.  19.  The treasurer of state, before making
 25 12 the allotments provided for in this section, shall credit
 25 13 monthly from the road use tax fund to the primary road fund an
 25 14 amount equal to ten percent of the revenues collected from the
 25 15 operation of section 321.105A, subsection 2, to be used for
 25 16 the commercial and industrial highway network.
 25 17    Sec. 35.  Section 321.52A, Code 2007, is amended to read as
 25 18 follows:
 25 19    321.52A  CERTIFICATE OF TITLE SURCHARGE == ALLOCATION OF
 25 20 MONEYS.
 25 21    1.  In addition to the fee required for the issuance of a
 25 22 certificate of title under section 321.20, 321.20A, 321.23,
 25 23 321.42, 321.46, 321.47, 321.48, 321.50, or 321.52, a surcharge
 25 24 of five dollars shall be required.  Of each surcharge
 25 25 collected under those sections, the county treasurer shall
 25 26 remit five dollars to the office of treasurer of state for
 25 27 deposit as set forth in section 321.145, subsection 2.
 25 28    2.  For the fiscal year beginning July 1, 2002, through the
 25 29 fiscal year beginning July 1, 2006, the treasurer of state
 25 30 shall deposit twenty percent of the moneys received under
 25 31 subsection 1 in the waste tire management fund and deposit the
 25 32 remainder in the road use tax fund.  For the fiscal year
 25 33 beginning July 1, 2007, and each subsequent fiscal year, the
 25 34 treasurer of state shall deposit the entire amount of moneys
 25 35 received under subsection 1 in the road use tax fund.
 26  1    Sec. 36.  Section 321.145, Code 2007, is amended to read as
 26  2 follows:
 26  3    321.145  DISPOSITION OF MONEYS AND FEES.
 26  4    1.  Except for fines, forfeitures, court costs, and the
 26  5 collection fees retained by the county treasurer pursuant to
 26  6 section 321.152, and except as provided in subsection 2,
 26  7 moneys and motor vehicle license registration fees collected
 26  8 under this chapter shall be credited by the treasurer of state
 26  9 to the road use tax fund.
 26 10    2.  Revenues derived from trailer registration fees
 26 11 collected pursuant to sections 321.105 and 321.105A, fees
 26 12 charged for driver's licenses and nonoperator's identification
 26 13 cards, fees charged for the issuance of a certificate of
 26 14 title, the certificate of title surcharge collected pursuant
 26 15 to section 321.52A, and revenues credited pursuant to section
 26 16 423.43, subsection 2, and section 423C.5 shall be deposited in
 26 17 a fund to be known as the statutory allocations fund under the
 26 18 control of the department and credited as follows:
 26 19    a.  Four million two hundred fifty thousand dollars per
 26 20 quarter shall be deposited into and credited to the Iowa
 26 21 comprehensive petroleum underground storage tank fund created
 26 22 in section 455G.3, and the moneys so deposited are a
 26 23 continuing appropriation for expenditure under chapter 455G,
 26 24 and moneys so appropriated shall not be used for other
 26 25 purposes.
 26 26    b.  Moneys remaining after the operation of paragraph "a"
 26 27 shall be credited in order of priority as follows:
 26 28    (1)  An amount equal to four percent of the revenue from
 26 29 the operation of section 321.105A, subsection 2, shall be
 26 30 credited to the department, to be used for purposes of public
 26 31 transit assistance under chapter 324A.
 26 32    (2)  An amount equal to one dollar per year of license
 26 33 validity for each issued or renewed driver's license which is
 26 34 valid for the operation of a motorcycle shall be credited to
 26 35 the motorcycle rider education fund established under section
 27  1 321.180B.
 27  2    (3)  The amounts required to be transferred pursuant to
 27  3 section 321.34 from revenues available under this subsection
 27  4 shall be transferred and credited as provided in section
 27  5 321.34, subsections 7, 10, 10A, 11, 11A, 11B, 13, 16, 17, 18,
 27  6 19, 20, 20A, 20B, 21, 22, 23, and 24 for the various purposes
 27  7 specified in those subsections.
 27  8    (4)  Amounts certified by the railway finance authority
 27  9 pursuant to section 327I.25 and appropriated to the authority
 27 10 pursuant to section 327I.26, not to exceed two million dollars
 27 11 annually.
 27 12    (5)  The department may direct the treasurer of state to
 27 13 credit to the primary road fund any amount of such revenues to
 27 14 the extent necessary to reimburse that fund for the
 27 15 expenditures not otherwise eligible to be made from the
 27 16 primary road fund, which are made for repairing, improving,
 27 17 and maintaining bridges over the rivers bordering the state.
 27 18 Expenditures for those portions of bridges within adjacent
 27 19 states may be included when they are made pursuant to an
 27 20 agreement entered into under section 313.63, 313A.34, or
 27 21 314.10.
 27 22    c.  Any such revenues remaining shall be credited to the
 27 23 road use tax fund.
 27 24    Sec. 37.  Section 423C.5, Code 2007, is amended to read as
 27 25 follows:
 27 26    423C.5  DEPOSIT OF REVENUE.
 27 27    The revenue arising from the operation of this chapter
 27 28 shall be credited to the road use tax fund statutory
 27 29 allocations fund created under section 321.145, subsection 2.
 27 30                             PART 2
 27 31                FEE FOR NEW VEHICLE REGISTRATION
 27 32    Sec. 38.  Section 321.1, Code 2007, is amended by adding
 27 33 the following new subsection:
 27 34    NEW SUBSECTION.  59A.  "Registration fees", unless
 27 35 otherwise specified, means both the annual vehicle
 28  1 registration fee and the fee for new registration, to the
 28  2 extent applicable, for purposes of administering the
 28  3 provisions of this chapter concerning vehicle registration
 28  4 fees.
 28  5    Sec. 39.  Section 321.2, Code 2007, is amended to read as
 28  6 follows:
 28  7    321.2  DEPARTMENT.
 28  8    1.  The Except as otherwise provided by law, the state
 28  9 department of transportation shall administer and enforce the
 28 10 provisions of this chapter.
 28 11    2.  The division of state patrol of the department of
 28 12 public safety shall enforce the provisions of this chapter
 28 13 relating to traffic on the public highways of the state,
 28 14 including those relating to the safe and legal operation of
 28 15 passenger cars, motorcycles, motor trucks and buses, and to
 28 16 see that proper safety rules are observed.
 28 17    3.  The state department of transportation and the
 28 18 department of public safety shall cooperate to insure the
 28 19 proper and adequate enforcement of the provisions of this
 28 20 chapter.
 28 21    4.  The director of revenue shall administer and enforce
 28 22 the collection of the fee for new registration as provided in
 28 23 section 321.105A.
 28 24    Sec. 40.  NEW SECTION.  321.105A  FEE FOR NEW REGISTRATION.
 28 25    1.  DEFINITIONS.  The following terms, when used in this
 28 26 section, shall have the following meanings, except in those
 28 27 instances where the context clearly indicates otherwise:
 28 28    a.  "Department" means the department of revenue.
 28 29    b.  "Director" means the director of revenue.
 28 30    c.  "Owner" means as defined in section 321.1.  For
 28 31 purposes of the fee for new registration imposed on leased
 28 32 vehicles under subsection 3, "owner" means the "lessor".
 28 33    d.  "Purchase" means any transfer, exchange, or barter,
 28 34 conditional or otherwise, in any manner or by any means
 28 35 whatsoever, for consideration.
 29  1    2.  In addition to the annual registration fee required
 29  2 under section 321.105, a "fee for new registration" is imposed
 29  3 in the amount of five percent of the purchase price for each
 29  4 vehicle subject to registration.  The fee for new registration
 29  5 shall be paid by the owner of the vehicle to the county
 29  6 treasurer at the time application is made for a new
 29  7 registration and certificate of title, if applicable.  A new
 29  8 registration receipt shall not be issued until the fee has
 29  9 been paid.  The county treasurer or the department of
 29 10 transportation shall require every applicant for a new
 29 11 registration receipt for a vehicle subject to registration to
 29 12 supply information as the county treasurer or the director
 29 13 deems necessary as to the time of purchase, the purchase
 29 14 price, and other information relative to the purchase of the
 29 15 vehicle.  On or before the tenth day of each month, the county
 29 16 treasurer or the department of transportation shall remit to
 29 17 the department of revenue the amount of the fees for new
 29 18 registration collected during the preceding month.
 29 19    a.  For purposes of this subsection, "purchase price"
 29 20 applies to the measure subject to the fee for new
 29 21 registration.  "Purchase price" shall be determined in the
 29 22 same manner as "sales price" is determined for purposes of
 29 23 computing the tax imposed upon the sales price of tangible
 29 24 personal property under chapter 423, pursuant to the
 29 25 definition in section 423.1, subsection 47, subject to the
 29 26 following exemptions:
 29 27    (1)  Exempted from the purchase price of any vehicle
 29 28 subject to registration is the amount of any cash rebate which
 29 29 is provided by a motor vehicle manufacturer to the purchaser
 29 30 of the vehicle subject to registration so long as the rebate
 29 31 is applied to the purchase price of the vehicle.
 29 32    (2)  (a)  In transactions, except those subject to
 29 33 subparagraph subdivision (b), in which a vehicle subject to
 29 34 registration is traded toward the purchase price of another
 29 35 vehicle subject to registration, the purchase price is only
 30  1 that portion of the purchase price which is valued in money,
 30  2 whether received in money or not, if the following conditions
 30  3 are met:
 30  4    (i)  The vehicle traded to the retailer is the type of
 30  5 vehicle normally sold in the regular course of the retailer's
 30  6 business.
 30  7    (ii)  The vehicle traded to the retailer is intended by the
 30  8 retailer to be ultimately sold at retail or is intended to be
 30  9 used by the retailer or another in the remanufacturing of a
 30 10 like vehicle.
 30 11    (b)  In a transaction between persons, neither of which is
 30 12 a retailer of vehicles subject to registration, in which a
 30 13 vehicle subject to registration is traded toward the purchase
 30 14 price of another vehicle subject to registration, the amount
 30 15 of the trade=in value allowed on the vehicle subject to
 30 16 registration traded is exempted from the purchase price.
 30 17    (c)  In order for the trade=in value to be excluded from
 30 18 the purchase price, the name or names on the title and
 30 19 registration of the vehicle being purchased must be the same
 30 20 name or names on the title and registration of the vehicle
 30 21 being traded.  The following trades qualify under this
 30 22 subparagraph subdivision (c):
 30 23    (i)  A trade involving spouses, if the traded vehicle and
 30 24 the acquired vehicle are titled in the name of one or both of
 30 25 the spouses, with no outside party named on the title.
 30 26    (ii)  A trade involving a grandparent, parent, or child,
 30 27 including adopted and step relationships, if the name of one
 30 28 of the family members from the title of the traded vehicle is
 30 29 also on the title of the newly acquired vehicle.
 30 30    (iii)  A trade involving a business, if one of the owners
 30 31 listed on the title of the traded vehicle is a business, and
 30 32 the names on the title are separated by "or".
 30 33    (iv)  A trade in which the vehicle being purchased is
 30 34 titled in the name of an individual other than the owner of
 30 35 the traded vehicle due to the cosigning requirements of a
 31  1 financial institution.
 31  2    (3)  Exempted from the purchase price of a replacement
 31  3 motor vehicle owned by a motor vehicle dealer licensed under
 31  4 chapter 322 which is being registered by that dealer and is
 31  5 not otherwise exempt from the fee for new registration is the
 31  6 fair market value of a replaced motor vehicle if all of the
 31  7 following conditions are met:
 31  8    (a)  The motor vehicle being registered is being placed in
 31  9 service as a replacement motor vehicle for a motor vehicle
 31 10 registered by the motor vehicle dealer.
 31 11    (b)  The motor vehicle being registered is taken from the
 31 12 motor vehicle dealer's inventory.
 31 13    (c)  Use tax or the fee for new registration on the motor
 31 14 vehicle being replaced was paid by the motor vehicle dealer
 31 15 when that motor vehicle was registered.
 31 16    (d)  The replaced motor vehicle is returned to the motor
 31 17 vehicle dealer's inventory for sale.
 31 18    (e)  The application for registration and title of the
 31 19 motor vehicle being registered is filed with the county
 31 20 treasurer within two weeks of the date the replaced motor
 31 21 vehicle is returned to the motor vehicle dealer's inventory.
 31 22    (f)  The motor vehicle being registered is placed in the
 31 23 same or substantially similar service as the replaced motor
 31 24 vehicle.
 31 25    b.  For purposes of this subsection, the fee for new
 31 26 registration on a vehicle registered in this state by the
 31 27 manufacturer of that vehicle from a manufacturer's statement
 31 28 of origin is calculated on the base value of fifty percent of
 31 29 the retail list price of the vehicle.
 31 30    c.  The following are exempt from the fee for new
 31 31 registration imposed under this subsection, as long as a valid
 31 32 affidavit is filed with the county treasurer at the time of
 31 33 application for registration:
 31 34    (1)  Entities listed in section 423.3, subsections 17, 18,
 31 35 19, 20, 21, 22, 26, 27, 28, 31, and 79, to the extent that
 32  1 those entities are exempt from the tax imposed on the sale of
 32  2 tangible personal property, consisting of goods, wares, or
 32  3 merchandise, sold at retail in the state to consumers or
 32  4 users.
 32  5    (2)  Vehicles as defined in section 321.1, subsections 41,
 32  6 64A, 71, 85, and 88, except such vehicles subject to
 32  7 registration which are designed primarily for carrying
 32  8 persons, when purchased for lease and actually leased to a
 32  9 lessee for use outside the state of Iowa and the subsequent
 32 10 sole use in Iowa is in interstate commerce or interstate
 32 11 transportation.
 32 12    (3)  (a)  Vehicles subject to registration which are
 32 13 transferred from a business or individual conducting a
 32 14 business within this state as a sole proprietorship,
 32 15 partnership, or limited liability company to a corporation
 32 16 formed by the sole proprietorship, partnership, or limited
 32 17 liability company for the purpose of continuing the business
 32 18 when all of the stock of the corporation so formed is owned by
 32 19 the sole proprietor and the sole proprietor's spouse, by all
 32 20 the partners in the case of a partnership, or by all the
 32 21 members in the case of a limited liability company.  This
 32 22 exemption is equally available where the vehicles subject to
 32 23 registration are transferred from a corporation to a sole
 32 24 proprietorship, partnership, or limited liability company
 32 25 formed by that corporation for the purpose of continuing the
 32 26 business when all of the incidents of ownership are owned by
 32 27 the same person or persons who were stockholders of the
 32 28 corporation.
 32 29    (b)  This exemption also applies where the vehicles subject
 32 30 to registration are transferred from a corporation as part of
 32 31 the liquidation of the corporation to its stockholders if
 32 32 within three months of such transfer the stockholders
 32 33 retransfer those vehicles subject to registration to a sole
 32 34 proprietorship, partnership, or limited liability company for
 32 35 the purpose of continuing the business of the corporation when
 33  1 all of the incidents of ownership are owned by the same person
 33  2 or persons who were stockholders of the corporation.
 33  3    (c)  This exemption applies to corporations that have been
 33  4 in existence for not longer than twenty=four months.
 33  5    (4)  Vehicles subject to registration which are transferred
 33  6 from a corporation that is primarily engaged in the business
 33  7 of leasing vehicles subject to registration to a corporation
 33  8 that is primarily engaged in the business of leasing vehicles
 33  9 subject to registration when the transferor and transferee
 33 10 corporations are part of the same controlled group for federal
 33 11 income tax purposes.
 33 12    (5)  (a)  Vehicles registered or operated under chapter 326
 33 13 and used substantially in interstate commerce.  For purposes
 33 14 of this subparagraph (5), "substantially in interstate
 33 15 commerce" means that a minimum of twenty=five percent of the
 33 16 miles operated by the vehicle accrues in states other than
 33 17 Iowa.  This subparagraph (5) applies only to vehicles which
 33 18 are registered for a gross weight of thirteen tons or more.
 33 19    (b)  For purposes of this subparagraph (5), trailers and
 33 20 semitrailers registered or operated under chapter 326 are
 33 21 deemed to be used substantially in interstate commerce and to
 33 22 be registered for a gross weight of thirteen tons or more.
 33 23    (c)  For the purposes of this subparagraph (5), if a
 33 24 vehicle meets the requirement that twenty=five percent of the
 33 25 miles operated accrues in states other than Iowa in each year
 33 26 of the first four=year period of operation, the exemption from
 33 27 the fee for new registration shall continue until the vehicle
 33 28 is sold or transferred.  If the vehicle is found to have not
 33 29 met the exemption requirements or the exemption was revoked,
 33 30 the value of the vehicle upon which the fee for new
 33 31 registration shall be imposed is based on the original
 33 32 purchase price if revocation or nonqualification for this
 33 33 exemption occurs during the first year following registration.
 33 34 If revocation or nonqualification for this exemption occurs
 33 35 after the first year following registration, the value of the
 34  1 vehicle upon which the fee shall be imposed is the book or
 34  2 market value, whichever is less, at the time the exemption
 34  3 requirements were not met or the exemption was revoked.
 34  4    (6)  Vehicles subject to registration in any state when
 34  5 purchased for rental or registered and titled by a motor
 34  6 vehicle dealer licensed pursuant to chapter 322 for rental
 34  7 use, and held for rental for a period of one hundred twenty
 34  8 days or more and actually rented for periods of sixty days or
 34  9 less by a person regularly engaged in the business of renting
 34 10 vehicles including but not limited to motor vehicle dealers
 34 11 licensed pursuant to chapter 322 who rent automobiles to
 34 12 users, if the rental of the vehicles is subject to taxation
 34 13 under chapter 423C.
 34 14    (7)  Vehicles subject to registration in this state for
 34 15 which the applicant for registration has paid to another state
 34 16 a state sales, use, or occupational tax.  However, if the tax
 34 17 paid to another state is less than the fee for new
 34 18 registration calculated for the vehicle, the difference shall
 34 19 be the amount to be collected as the fee for new registration.
 34 20    (8)  A vehicle subject to registration in this state which
 34 21 is owned by a person who has moved from another state with the
 34 22 intention of changing residency to Iowa, provided that the
 34 23 vehicle was purchased for use in the state from which the
 34 24 applicant moved and was not, at or near the time of purchase,
 34 25 purchased for use in Iowa.
 34 26    (9)  A vehicle that was previously registered in this state
 34 27 and was subsequently registered in another state is not
 34 28 subject to the fee for new registration when it is again
 34 29 registered in this state, provided that the applicant for
 34 30 registration has maintained ownership of the vehicle since its
 34 31 initial registration in this state and has previously paid the
 34 32 use tax or fee for new registration for the vehicle in this
 34 33 state.
 34 34    (10)  Vehicles transferred by operation of law as provided
 34 35 in section 321.47.
 35  1    (11)  Vehicles for which ownership is transferred to or
 35  2 from a revocable or irrevocable trust, if no consideration is
 35  3 present.
 35  4    (12)  Vehicles transferred to the surviving corporation for
 35  5 no consideration as a result of a corporate merger according
 35  6 to the laws of this state in which the merging corporation is
 35  7 immediately extinguished and dissolved.
 35  8    (13)  Vehicles purchased in this state by a nonresident for
 35  9 removal to the nonresident's state of residence if the
 35 10 purchaser applies to the county treasurer for a transit plate
 35 11 under section 321.109.
 35 12    (14)  Vehicles purchased by a licensed motor vehicle dealer
 35 13 for resale.
 35 14    (15)  Vehicles purchased by a licensed wholesaler of new
 35 15 motor vehicles for resale.
 35 16    (16)  Homemade vehicles built from parts purchased at
 35 17 retail, upon which the consumer paid a tax to the seller, but
 35 18 only on such vehicles never before registered.  This exemption
 35 19 does not apply for vehicles subject to registration which are
 35 20 made by a manufacturer engaged in the business for the purpose
 35 21 of sales or rental.
 35 22    (17)  Vehicles titled under a salvage certificate of title.
 35 23 However, when such a vehicle has been repaired and a regular
 35 24 certificate of title is applied for, the fee for new
 35 25 registration is due as follows:
 35 26    (a)  If the owner of the vehicle is a licensed recycler,
 35 27 unless the applicant is licensed as a vehicle dealer, the fee
 35 28 for new registration applies based on the fair market value of
 35 29 the vehicle, with deduction allowed for the cost of parts,
 35 30 supplies, and equipment for which sales tax was paid and which
 35 31 were used to rebuild the vehicle.
 35 32    (b)  If the owner is a person who is not licensed as a
 35 33 recycler or vehicle dealer, the fee for new registration
 35 34 applies based on the fair market value of the vehicle, with
 35 35 deduction allowed for the cost of parts, frames, chassis, auto
 36  1 bodies, or supplies that were purchased to rebuild the vehicle
 36  2 and for which sales tax was paid.
 36  3    (18)  A vehicle delivered to a resident Native American
 36  4 Indian on the reservation.
 36  5    (19)  A vehicle transferred from one individual to another
 36  6 as a gift in a transaction in which no consideration is
 36  7 present.
 36  8    (20)  A vehicle given by a corporation as a gift to a
 36  9 retiring employee.
 36 10    (21)  A vehicle sold by an entity where the profits from
 36 11 the sale are used by or donated to a nonprofit entity which is
 36 12 exempt from federal income taxation pursuant to section
 36 13 501(c)(3) of the Internal Revenue Code, a government entity,
 36 14 or a nonprofit private educational institution, and where the
 36 15 entire proceeds from the sale of the vehicle are expended for
 36 16 any of the following purposes:
 36 17    (a)  Educational.
 36 18    (b)  Religious.
 36 19    (c)  Charitable.  A charitable act is an act done out of
 36 20 goodwill, benevolence, and a desire to add to or to improve
 36 21 the good of humankind in general or any class or portion of
 36 22 humankind, with no pecuniary profit inuring to the person
 36 23 performing the service or giving the gift.
 36 24    (22)  A vehicle given or sold to be subsequently awarded as
 36 25 a raffle prize under chapter 99B.
 36 26    (23)  A vehicle won as a raffle prize under chapter 99B.
 36 27    (24)  A vehicle that is directly and primarily used in the
 36 28 recycling or reprocessing of waste products.
 36 29    (25)  Vehicles subject to registration under this chapter
 36 30 with a gross vehicle weight rating of less than sixteen
 36 31 thousand pounds, excluding motorcycles and motorized bicycles,
 36 32 when purchased for lease and titled by the lessor licensed
 36 33 pursuant to chapter 321F and actually leased for a period of
 36 34 twelve months or more if the lease of the vehicle is subject
 36 35 to the fee for new registration under subsection 3.
 37  1    A lessor may maintain the exemption under this subparagraph
 37  2 for a qualifying lease that terminates at the conclusion or
 37  3 prior to the contracted expiration date if the lessor does not
 37  4 use the vehicle for any purpose other than for lease.  Once
 37  5 the vehicle is used by the lessor for a purpose other than for
 37  6 lease, the exemption under this subparagraph no longer applies
 37  7 and, unless there is another exemption from the fee for new
 37  8 registration, the fee for new registration is due on the fair
 37  9 market value of the vehicle determined at the time the lessor
 37 10 uses the vehicle for a purpose other than for lease, payable
 37 11 to the department.  If the lessor holds the vehicle
 37 12 exclusively for sale, the fee for new registration is due and
 37 13 payable on the purchase price of the vehicle at the time of
 37 14 purchase pursuant to this subsection.
 37 15    (26)  A vehicle repossessed by a licensed vehicle dealer
 37 16 pursuant to the uniform commercial code, chapter 554, provided
 37 17 there is a valid lien on the title and the dealer anticipates
 37 18 reselling the vehicle.
 37 19    (27)  A vehicle repossessed by a financial institution or
 37 20 an individual by means of a foreclosure affidavit pursuant to
 37 21 the uniform commercial code, chapter 554, provided there is a
 37 22 valid lien on the vehicle and the foreclosure affidavit is
 37 23 used for the sole purpose of retaining possession of the
 37 24 vehicle until a new buyer is found.  However, if the financial
 37 25 institution or individual uses the foreclosure affidavit to
 37 26 take title to the vehicle and register the vehicle, the new
 37 27 registration fee shall be due based on the outstanding loan
 37 28 amount on the vehicle.
 37 29    (28)  A damaged vehicle acquired by an insurance company
 37 30 from a client or financial institution, provided the insurance
 37 31 company has a vehicle dealers license.
 37 32    (29)  A vehicle returned to a manufacturer and titled in
 37 33 the manufacturer's name under section 322G.12.
 37 34    (30)  A vehicle purchased directly by a federal, state, or
 37 35 local governmental agency and titled in an individual's name
 38  1 pursuant to a governmental program authorized by law.
 38  2    3.  LEASED VEHICLES.
 38  3    a.  A fee for new registration is imposed in an amount
 38  4 equal to five percent of the leased price for each vehicle
 38  5 subject to registration with a gross vehicle weight rating of
 38  6 less than sixteen thousand pounds, excluding motorcycles and
 38  7 motorized bicycles, which is leased by a lessor licensed
 38  8 pursuant to chapter 321F for a period of twelve months or
 38  9 more.  The fee for new registration shall be paid by the owner
 38 10 of the vehicle to the county treasurer from whom the
 38 11 registration receipt or certificate of title is obtained.  A
 38 12 registration receipt for a vehicle subject to registration or
 38 13 issuance of a certificate of title shall not be issued until
 38 14 the fee for new registration is paid in the initial instance.
 38 15    b.  The amount of the lease price subject to the fee for
 38 16 new registration shall be computed on each separate lease
 38 17 transaction by taking the total of the lease payments, plus
 38 18 the down payment, and excluding the following charges, if
 38 19 included as part of the lease payment:
 38 20    (1)  Title fee.
 38 21    (2)  Annual registration fees.
 38 22    (3)  Fee for new registration.
 38 23    (4)  Federal excise taxes attributable to the sale of the
 38 24 vehicle to the owner or to the lease of the vehicle by the
 38 25 owner.
 38 26    (5)  Optional service or warranty contracts subject to tax
 38 27 pursuant to section 423.2, subsection 1.
 38 28    (6)  Insurance.
 38 29    (7)  Manufacturer's rebate.
 38 30    (8)  Refundable deposit.
 38 31    (9)  Finance charges, if any, on items listed in
 38 32 subparagraphs (1) through (8).
 38 33    c.  If any or all of the items in paragraph "b",
 38 34 subparagraphs (1) through (8), are excluded from the lease
 38 35 price subject to the fee for new registration, the owner shall
 39  1 maintain adequate records of the amounts of those items.  If
 39  2 the parties to a lease enter into an agreement providing that
 39  3 the fee for new registration is to be paid by the lessee or
 39  4 included in the monthly lease payments to be paid by the
 39  5 lessee, the total cost of the fee for new registration shall
 39  6 not be included in the computation of the lease price for the
 39  7 purpose of the fee for new registration under this section.
 39  8 The county treasurer or the department of transportation shall
 39  9 require every applicant for a registration receipt for a
 39 10 vehicle subject to a fee for new registration to supply
 39 11 information as the county treasurer or the director deems
 39 12 necessary as to the date of the lease transaction, the lease
 39 13 price, and other information relative to the lease of the
 39 14 vehicle.
 39 15    d.  On or before the tenth day of each month, the county
 39 16 treasurer or the department of transportation shall remit to
 39 17 the department of revenue the amount of the fees for new
 39 18 registration collected during the preceding month.
 39 19    e.  If the lease is terminated prior to the termination
 39 20 date contained in the lease agreement, no refund shall be
 39 21 allowed for a fee for new registration previously paid under
 39 22 this section, except as provided in section 322G.4.
 39 23    4.  ADMINISTRATION AND ENFORCEMENT == DIRECTOR OF REVENUE.
 39 24    a.  The director of revenue in consultation with the
 39 25 department of transportation shall administer and enforce the
 39 26 fee for new registration as nearly as possible in conjunction
 39 27 with the administration and enforcement of the state use tax
 39 28 law, except that portion of the law which implements the
 39 29 streamlined sales and use tax agreement.  The director shall
 39 30 provide appropriate forms, or provide on the annual
 39 31 registration forms provided by the department of
 39 32 transportation, for reporting the fee for new registration
 39 33 liability.
 39 34    b.  Section 422.25, subsection 4, sections 422.30, 422.67,
 39 35 and 422.68, section 422.69, subsection 1, sections 422.70,
 40  1 422.71, 422.72, 422.74, and 422.75, section 423.14, subsection
 40  2 2, and sections 423.23, 423.24, 423.25, 423.32, 423.33,
 40  3 423.35, 423.37 through 423.42, 423.45, and 423.47, consistent
 40  4 with the provisions of this section, apply with respect to the
 40  5 fees for new registration authorized under this section in the
 40  6 same manner and with the same effect as if the fees for new
 40  7 registration were retail use taxes within the meaning of those
 40  8 statutes.
 40  9    5.  COLLECTIONS BY LICENSED DEALERS.
 40 10    a.  A licensed vehicle dealer maintaining a place of
 40 11 business in this state who sells a vehicle subject to
 40 12 registration for use in this state shall collect the fee for
 40 13 new registration at the time of making the sale.  A dealer
 40 14 required to collect the fee for new registration shall give to
 40 15 the purchaser a receipt for the fee in the manner and form
 40 16 prescribed by the director.  Fees collected by a dealer under
 40 17 this section shall be forwarded to the county treasurer in the
 40 18 same manner as annual registration fees.
 40 19    b.  If an amount of the fee for new registration
 40 20 represented by a dealer to the purchaser of a vehicle is
 40 21 computed upon a purchase price that is not subject to the fee
 40 22 for new registration or the amount represented is in excess of
 40 23 the actual amount subject to the fee and the amount
 40 24 represented is actually paid by the purchaser to the dealer,
 40 25 the excess amount of fee for new registration paid shall be
 40 26 returned to the purchaser upon notification to the dealer by
 40 27 the department that an excess payment exists.
 40 28    c.  If an amount of the fee for new registration
 40 29 represented by a dealer to a purchaser is computed upon a
 40 30 purchase price that is not subject to the fee for new
 40 31 registration or the amount represented is in excess of the
 40 32 actual amount subject to the fee and the amount represented is
 40 33 actually paid by the purchaser to the dealer, the excess
 40 34 amount of fee for new registration paid shall be returned to
 40 35 the purchaser upon proper notification to the dealer by the
 41  1 purchaser that an excess payment exists.  "Proper"
 41  2 notification is written notification which allows a dealer at
 41  3 least sixty days to respond and which contains enough
 41  4 information to allow a dealer to determine the validity of a
 41  5 purchaser's claim that an excess amount of fee for new
 41  6 registration has been paid.  No cause of action shall accrue
 41  7 against a dealer for excess fee for new registration paid
 41  8 until sixty days after proper notice has been given the dealer
 41  9 by the purchaser.
 41 10    d.  In the circumstances described in paragraphs "b" and
 41 11 "c", a dealer has the option to either return any excess
 41 12 amount of fee for new registration paid to a purchaser, or to
 41 13 remit the amount which a purchaser has paid to the dealer to
 41 14 the department.
 41 15    6.  REFUNDS.
 41 16    a.  A fee for new registration is not refundable, except in
 41 17 the following circumstances:
 41 18    (1)  If a vehicle is sold and later returned to the seller
 41 19 and the entire purchase price is refunded by the seller, the
 41 20 purchaser is entitled to a refund of the fee for new
 41 21 registration paid.  To obtain a refund, the purchaser shall
 41 22 make application on forms provided by the department and show
 41 23 proof that the entire purchase price was returned and that the
 41 24 fee for new registration had been paid.
 41 25    (2)  If a vehicle manufacturer reimburses a purchaser for
 41 26 the fee for new registration paid on a returned defective
 41 27 vehicle, the manufacturer may obtain a refund from the
 41 28 department by providing proof that the fee was paid and the
 41 29 purchaser reimbursed in accordance with the provisions of
 41 30 chapter 322G.
 41 31    (3)  If the department determines that, as a result of a
 41 32 mistake, an amount of the fee for new registration has been
 41 33 paid which was not due, such amount shall be refunded to the
 41 34 vehicle owner by the department.
 41 35    b.  A claim for refund under this subsection that has not
 42  1 been filed with the department within three years after the
 42  2 fee for new registration was paid shall not be allowed by the
 42  3 director.
 42  4    7.  PENALTY FOR FALSE STATEMENT.  A person who willfully
 42  5 makes a false statement in regard to the purchase price of a
 42  6 vehicle subject to a fee for new registration is guilty of a
 42  7 fraudulent practice.  A person who willfully makes a false
 42  8 statement in regard to the purchase price of such a vehicle
 42  9 with the intent to evade payment of the fee for new
 42 10 registration shall be assessed a penalty of seventy=five
 42 11 percent of the amount of the fee unpaid and required to be
 42 12 paid on the actual purchase price less trade=in allowance.
 42 13                             PART 3
 42 14                 MOTOR VEHICLE USE TAX == REPEAL
 42 15    Sec. 41.  Section 423.6, subsection 6, Code 2007, is
 42 16 amended to read as follows:
 42 17    6.  Tangible personal property or services the sales price
 42 18 of which is exempt from the sales tax under section 423.3,
 42 19 except subsections 39 and 73, as it relates to the sale, but
 42 20 not the lease or rental, of vehicles subject to registration
 42 21 or subject only to the issuance of a certificate of title and
 42 22 as it relates to aircraft subject to registration under
 42 23 section 328.20.
 42 24    Sec. 42.  Section 423.6, subsections 8, 10, 11, 12, 16, 17,
 42 25 18, 24, and 25, Code 2007, are amended by striking the
 42 26 subsections.
 42 27    Sec. 43.  Section 423.14, subsection 2, paragraph a, Code
 42 28 2007, is amended to read as follows:
 42 29    a.  The tax upon the use of all vehicles subject to
 42 30 registration or subject only to the issuance of a certificate
 42 31 of title or the tax upon the use of manufactured housing shall
 42 32 be collected by the county treasurer or the state department
 42 33 of transportation pursuant to sections section 423.26 and
 42 34 423.27, subsection 1.  The county treasurer shall retain one
 42 35 dollar from each tax payment collected, to be credited to the
 43  1 county general fund.
 43  2    Sec. 44.  Section 423.26, Code 2007, is amended to read as
 43  3 follows:
 43  4    423.26  VEHICLES SUBJECT TO REGISTRATION OR ONLY TO THE
 43  5 ISSUANCE OF TITLE == MANUFACTURED HOUSING == VEHICLE LEASE
 43  6 TRANSACTIONS NOT REQUIRING TITLE OR REGISTRATION.
 43  7    1.  a.  The use tax imposed upon the use of vehicles
 43  8 subject to registration or subject only to the issuance of a
 43  9 certificate of title or imposed upon the use of manufactured
 43 10 housing shall be paid by the owner of the vehicle or of the
 43 11 manufactured housing to the county treasurer or the state
 43 12 department of transportation from whom the registration
 43 13 receipt or certificate of title is obtained.  A registration
 43 14 receipt for a vehicle subject to registration or certificate
 43 15 of title shall not be issued until the tax has been paid.  The
 43 16 county treasurer or the state department of transportation
 43 17 shall require every applicant for a registration receipt for a
 43 18 vehicle subject to registration or certificate of title to
 43 19 supply information as the county treasurer or the director
 43 20 deems necessary as to the time of purchase, the purchase
 43 21 price, installed purchase price, and other information
 43 22 relative to the purchase of the vehicle or manufactured
 43 23 housing.  On or before the tenth day of each month, the county
 43 24 treasurer or the state department of transportation shall
 43 25 remit to the department the amount of the taxes collected
 43 26 during the preceding month.
 43 27    b.  A person who willfully makes a false statement in
 43 28 regard to the purchase price of a vehicle subject to taxation
 43 29 under this section subsection is guilty of a fraudulent
 43 30 practice.  A person who willfully makes a false statement in
 43 31 regard to the purchase price of such a vehicle with the intent
 43 32 to evade the payment of tax shall be assessed a penalty of
 43 33 seventy=five percent of the amount of tax unpaid and required
 43 34 to be paid on the actual purchase price less trade=in
 43 35 allowance.
 44  1    2.  a.  The use tax imposed upon the use of leased vehicles
 44  2 if the lease transaction does not require titling or
 44  3 registration of the vehicle shall be remitted to the
 44  4 department.  Tax and the reporting of tax due to the
 44  5 department shall be remitted on or before fifteen days from
 44  6 the last day of the month that the tax becomes due.  Failure
 44  7 to timely report or remit any of the tax when due shall result
 44  8 in a penalty and interest being imposed on the tax due
 44  9 pursuant to section 423.40, subsection 1, and section 423.42,
 44 10 subsection 1.
 44 11    b.  The amount subject to tax shall be computed on each
 44 12 separate lease transaction by taking the total of the lease
 44 13 payments, plus the down payment, and excluding all of the
 44 14 following:
 44 15    (1)  Title fee.
 44 16    (2)  Registration fees.
 44 17    (3)  Use tax pursuant to this subsection.
 44 18    (4)  Federal excise taxes attributable to the sale of the
 44 19 vehicle to the owner or to the lease of the vehicle by the
 44 20 owner.
 44 21    (5)  Optional service or warranty contracts subject to tax
 44 22 pursuant to section 423.2, subsection 1.
 44 23    (6)  Insurance.
 44 24    (7)  Manufacturer's rebate.
 44 25    (8)  Refundable deposit.
 44 26    (9)  Finance charges, if any, on items listed in
 44 27 subparagraphs (1) through (8).
 44 28    c.  If any or all of the items in paragraph "b",
 44 29 subparagraphs (1) through (8) are excluded from the taxable
 44 30 lease price, the owner shall maintain adequate records of the
 44 31 amounts of those items.  If the parties to a lease enter into
 44 32 an agreement providing that the tax imposed under this
 44 33 subsection is to be paid by the lessee or included in the
 44 34 monthly lease payments to be paid by the lessee, the total
 44 35 cost of the tax shall not be included in the computation of
 45  1 lease price for the purpose of taxation under this subsection.
 45  2    Sec. 45.  Section 423.43, Code Supplement 2007, is amended
 45  3 by striking the section and inserting in lieu thereof the
 45  4 following:
 45  5    423.43  DEPOSIT OF REVENUES.
 45  6    1.  Except as provided in subsection 2, all revenue arising
 45  7 under the operation of the use tax under subchapter III shall
 45  8 be deposited into the general fund of the state.
 45  9    2.  All revenue derived from the use tax imposed pursuant
 45 10 to section 423.26 shall be credited to the statutory
 45 11 allocations fund created under section 321.145, subsection 2.
 45 12    Sec. 46.  Section 423.27, Code 2007, is repealed.
 45 13                             PART 4
 45 14                      CONFORMING AMENDMENTS
 45 15    Sec. 47.  Section 29A.101A, subsection 5, Code Supplement
 45 16 2007, is amended to read as follows:
 45 17    5.  Rents or lease amounts unpaid for the period preceding
 45 18 the effective date of the lease termination shall be paid on a
 45 19 prorated basis.  In the case of a vehicle lease, the lessor
 45 20 shall not impose an early termination charge, but any taxes,
 45 21 summonses, and title and registration fees, including the fee
 45 22 for new registration, and any other obligation and liability
 45 23 of the lessee in accordance with the terms of the lease,
 45 24 including reasonable charges to the lessee for excess wear,
 45 25 use, and mileage, that are due and unpaid at the time of
 45 26 termination of the lease shall be paid by the lessee.
 45 27    Sec. 48.  Section 321.17, Code 2007, is amended to read as
 45 28 follows:
 45 29    321.17  MISDEMEANOR TO VIOLATE REGISTRATION PROVISIONS.
 45 30    It is a simple misdemeanor punishable as a scheduled
 45 31 violation under section 805.8A, subsection 2, paragraph "b",
 45 32 for any person to drive or move or for an owner knowingly to
 45 33 permit to be driven or moved upon the highway a vehicle of a
 45 34 type required to be registered under this chapter which is not
 45 35 registered, or for which the appropriate fee has fees have not
 46  1 been paid, except as provided in section 321.109, subsection
 46  2 3.
 46  3    Sec. 49.  Section 321.19, subsection 1, unnumbered
 46  4 paragraph 1, Code 2007, is amended to read as follows:
 46  5    All vehicles owned or leased for a period of sixty days or
 46  6 more by the government and used in the transaction of official
 46  7 business by the representatives of foreign governments or by
 46  8 officers, boards, or departments of the government of the
 46  9 United States, and by the state, counties, municipalities and
 46 10 other political subdivisions of the state including vehicles
 46 11 used by an urban transit company operated by a municipality or
 46 12 a regional transit system, and self=propelling vehicles used
 46 13 neither for the conveyance of persons for hire, pleasure, or
 46 14 business nor for the transportation of freight other than
 46 15 those used by an urban transit company operated by a
 46 16 municipality or a regional transit system, all fire trucks,
 46 17 providing they are not owned and operated for a pecuniary
 46 18 profit, and authorized emergency vehicles used only in
 46 19 disaster relief owned and operated by an organization not
 46 20 operated for pecuniary profit, are exempted from the payment
 46 21 of the registration fees imposed by this chapter, except as
 46 22 provided for urban transit companies in subsection 2, but are
 46 23 not exempt from the penalties provided in this chapter.
 46 24    Sec. 50.  Section 321.20, subsection 1, paragraph a, Code
 46 25 2007, is amended to read as follows:
 46 26    a.  The full legal name; social security number or Iowa
 46 27 driver's license number or Iowa nonoperator's identification
 46 28 card number; date of birth; bona fide residence; and mailing
 46 29 address of the owner and of the lessee if the vehicle is being
 46 30 leased.  If the owner or lessee is a firm, association, or
 46 31 corporation, the application shall contain the bona fide
 46 32 business address and federal employer identification number of
 46 33 the owner or lessee.  Up to three owners' names may be listed
 46 34 on the application.  If the vehicle is a leased vehicle, the
 46 35 application shall state whether the notice of registration
 47  1 renewal shall be sent to the lessor or to the lessee and
 47  2 whether the lessor or the lessee shall receive the
 47  3 registration fee refund of the annual registration fee, if
 47  4 any.  Information relating to the lessee of a vehicle shall
 47  5 not be required on an application for registration and a
 47  6 certificate of title for a vehicle with a gross vehicle weight
 47  7 rating of ten thousand pounds or more.
 47  8    Sec. 51.  Section 321.20, subsection 1, paragraph e, Code
 47  9 2007, is amended to read as follows:
 47 10    e.  The amount of the fee for new registration to be paid
 47 11 under section 321.105A or the amount of tax to be paid under
 47 12 section 423.26, subsection 1.
 47 13    Sec. 52.  Section 321.20A, Code 2007, is amended to read as
 47 14 follows:
 47 15    321.20A  CERTIFICATE OF TITLE AND REGISTRATION FEES ==
 47 16 COMMERCIAL VEHICLES.
 47 17    1.  Notwithstanding other provisions of this chapter, the
 47 18 owner of a commercial vehicle subject to the proportional
 47 19 registration provisions of chapter 326 may make application to
 47 20 the department or the appropriate county treasurer for a
 47 21 certificate of title.  The application for certificate of
 47 22 title shall be made within thirty days of purchase or transfer
 47 23 and shall be accompanied by a ten dollar title fee and the
 47 24 appropriate use tax fee for new registration.  The department
 47 25 or the county treasurer shall deliver the certificate of title
 47 26 to the owner if there is no security interest.  If there is a
 47 27 security interest, the title, when issued, shall be delivered
 47 28 to the first secured party.  Delivery may be made using
 47 29 electronic means.
 47 30    2.  An owner of more than fifty commercial vehicles subject
 47 31 to the proportional registration provisions of chapter 326 who
 47 32 is issued a certificate of title under this section shall not
 47 33 be subject to annual registration fees until the commercial
 47 34 vehicle is driven or moved upon the highways.  The annual
 47 35 registration fee due shall be prorated for the remaining
 48  1 unexpired months of the registration year.  Ownership of the
 48  2 commercial vehicle shall not be transferred until annual
 48  3 registration fees have been paid to the department.
 48  4    Sec. 53.  Section 321.23, subsection 3, Code 2007, is
 48  5 amended to read as follows:
 48  6    3.  In the event an applicant for registration of a foreign
 48  7 vehicle for which a certificate of title has been issued is
 48  8 able to furnish evidence of being the registered owner of the
 48  9 vehicle to the county treasurer of the owner's residence,
 48 10 although unable to surrender such certificate of title, the
 48 11 county treasurer may issue a registration receipt and plates
 48 12 upon receipt of the required annual registration fee and the
 48 13 fee for new registration fee but shall not issue a certificate
 48 14 of title thereto.  Upon surrender of the certificate of title
 48 15 from the foreign state, the county treasurer shall issue a
 48 16 certificate of title to the owner, or person entitled thereto,
 48 17 of such vehicle as provided in this chapter.  The owner of a
 48 18 vehicle registered under this subsection shall not be required
 48 19 to obtain a certificate of title in this state and may
 48 20 transfer ownership of the vehicle to a motor vehicle dealer
 48 21 licensed under chapter 322 if, at the time of the transfer,
 48 22 the certificate of title is held by a secured party and the
 48 23 dealer has forwarded to the secured party the sum necessary to
 48 24 discharge the security interest pursuant to section 321.48,
 48 25 subsection 1.
 48 26    Sec. 54.  Section 321.24, subsections 1, 3, and 10, Code
 48 27 Supplement 2007, are amended to read as follows:
 48 28    1.  Upon receipt of the application for title and payment
 48 29 of the required fees for a motor vehicle, trailer, or
 48 30 semitrailer, the county treasurer or the department shall,
 48 31 when satisfied as to the application's genuineness and
 48 32 regularity, and, in the case of a mobile home or manufactured
 48 33 home, that taxes are not owing under chapter 423 or 435, issue
 48 34 a certificate of title and, except for a mobile home or
 48 35 manufactured home, a registration receipt, and shall file the
 49  1 application, the manufacturer's or importer's certificate, the
 49  2 certificate of title, or other evidence of ownership, as
 49  3 prescribed by the department.  The registration receipt shall
 49  4 be delivered to the owner and shall contain upon its face the
 49  5 date issued, the name and address of the owner, the
 49  6 registration number assigned to the vehicle, the amount of the
 49  7 fee paid, the amount of tax paid pursuant to section 423.26,
 49  8 the type of fuel used, a description of the vehicle as
 49  9 determined by the department, and a form for notice of
 49 10 transfer of the vehicle.  The name and address of any lessee
 49 11 of the vehicle shall not be printed on the registration
 49 12 receipt or certificate of title.  Up to three owners may be
 49 13 listed on the registration receipt and certificate of title.
 49 14    3.  The certificate of title shall contain upon its face
 49 15 the identical information required upon the face of the
 49 16 registration receipt.  In addition, the certificate of title
 49 17 shall contain a statement of the owner's title, the title
 49 18 number assigned to the owner or owners of the vehicle, the
 49 19 amount of tax paid pursuant to section 423.26, the name and
 49 20 address of the previous owner, and a statement of all security
 49 21 interests and encumbrances as shown in the application, upon
 49 22 the vehicle described, including the nature of the security
 49 23 interest, date of perfection, and name and address of the
 49 24 secured party.
 49 25    10.  A vehicle shall be registered for the registration
 49 26 year.  A vehicle registered for the first time in this state
 49 27 shall be registered for the remaining unexpired months of the
 49 28 registration year and pay a an annual registration fee
 49 29 prorated for the remaining unexpired months of the
 49 30 registration year plus a fee for new registration if
 49 31 applicable pursuant to section 321.105A.  Except for a vehicle
 49 32 registered under chapter 326, a vehicle registered for the
 49 33 first time during the eleventh month of the owner's
 49 34 registration year may be registered for the remaining
 49 35 unexpired months of the registration year as provided in this
 50  1 paragraph or for the remaining unexpired months of the
 50  2 registration year and for the next registration year, upon
 50  3 payment of the applicable registration fees.
 50  4    Sec. 55.  Section 321.26, subsection 2, Code 2007, is
 50  5 amended to read as follows:
 50  6    2.  The county treasurer may adjust the renewal or
 50  7 expiration date of vehicles when deemed necessary to equalize
 50  8 the number of vehicles registered in each twelve=month period
 50  9 or for the administrative efficiency of the county treasurer's
 50 10 office.  The adjustment shall be accomplished by delivery of a
 50 11 written notice to the vehicle owner of the adjustment and
 50 12 allowance of a credit for the remaining months of the unused
 50 13 portion of the annual registration fee, rounded to the nearest
 50 14 whole dollar, which amount shall be deducted from the annual
 50 15 registration fee due at the time of registration.  Upon
 50 16 receipt of the notification the owner shall, within thirty
 50 17 days, surrender the registration card and registration plates
 50 18 to the county treasurer of the county where the vehicle is
 50 19 registered, except that the registration plates shall not be
 50 20 surrendered if validation stickers or other emblems are used
 50 21 to designate the month and year of expiration of registration.
 50 22 Upon payment of the annual registration fee, less the credit
 50 23 allowed for the remaining months of the unused portion of the
 50 24 annual registration fee, the county treasurer shall issue a
 50 25 new registration card and registration plates, validation
 50 26 stickers, or emblems which indicate the month and year of
 50 27 expiration of registration.
 50 28    Sec. 56.  Section 321.30, subsection 1, paragraphs e and f,
 50 29 Code Supplement 2007, are amended to read as follows:
 50 30    e.  That the required fee has registration fees have not
 50 31 been paid except as provided in section 321.48.
 50 32    f.  That For a vehicle subject only to a certificate of
 50 33 title or a manufactured home, that the required use tax has
 50 34 not been paid.
 50 35    Sec. 57.  Section 321.30, subsection 3, paragraph b, Code
 51  1 Supplement 2007, is amended to read as follows:
 51  2    b.  If the applicant for registration of the vehicle has
 51  3 failed to pay the required annual registration fees fee or the
 51  4 fee for new registration of any vehicle owned or previously
 51  5 owned when the registration fee was required to be paid by the
 51  6 applicant, and for which vehicle the registration was
 51  7 suspended or revoked under section 321.101, subsection 1,
 51  8 paragraph "d", or section 321.101A, until the fees are fee is
 51  9 paid together with any accrued penalties.
 51 10    Sec. 58.  Section 321.34, subsection 2, unnumbered
 51 11 paragraph 1, Code Supplement 2007, is amended to read as
 51 12 follows:
 51 13    In lieu of issuing new registration plates each
 51 14 registration year for a vehicle renewing registration, the
 51 15 department may reassign the registration plates previously
 51 16 issued to the vehicle and may adopt and prescribe an annual
 51 17 validation sticker indicating payment of annual registration
 51 18 fees.  The department shall issue one validation sticker for
 51 19 each set of registration plates.  The sticker shall specify
 51 20 the month and year of expiration of the registration plates.
 51 21 The sticker shall be displayed only on the rear registration
 51 22 plate, except that the sticker shall be displayed on the front
 51 23 registration plate of a truck tractor.
 51 24    Sec. 59.  Section 321.34, subsection 5, paragraphs b and c,
 51 25 Code Supplement 2007, is amended to read as follows:
 51 26    b.  The county treasurer shall validate personalized
 51 27 registration plates in the same manner as regular registration
 51 28 plates are validated under this section at an annual fee of
 51 29 five dollars in addition to the regular annual registration
 51 30 fee.  A person renewing a personalized registration plate
 51 31 within one month following the time requirements under section
 51 32 321.40 may renew the personalized plate without paying the
 51 33 additional registration fee under paragraph "a" but shall pay
 51 34 the five=dollar fee in addition to the regular annual
 51 35 registration fee and any penalties subject to regular
 52  1 registration plate holders for late renewal.
 52  2    c.  The fees collected by the director under this section
 52  3 subsection shall be paid to the treasurer of state and
 52  4 credited by the treasurer of state as provided in section
 52  5 321.145.
 52  6    Sec. 60.  Section 321.34, subsection 7, paragraph c, Code
 52  7 Supplement 2007, is amended to read as follows:
 52  8    c.  (1)  The fees for a collegiate registration plate are
 52  9 as follows:
 52 10    (1)  (a)  A registration fee of twenty=five dollars.
 52 11    (2)  (b)  A special collegiate registration fee of
 52 12 twenty=five dollars.
 52 13    (2)  These fees are in addition to the regular annual
 52 14 registration fee.  The fees collected by the director under
 52 15 this subsection shall be paid monthly to the treasurer of
 52 16 state and credited by the treasurer of state to deposited in
 52 17 the road use tax fund.  Notwithstanding section 423.43 and
 52 18 prior to the revenues being credited to the road use tax fund
 52 19 under section 423.43, subsection 1, paragraph "b", the The
 52 20 treasurer of state shall credit monthly from those revenues
 52 21 respectively the statutory allocations fund created under
 52 22 section 321.145, subsection 2, to Iowa state university of
 52 23 science and technology, the university of northern Iowa, and
 52 24 the state university of Iowa respectively, the amount of the
 52 25 special collegiate registration fees collected in the previous
 52 26 month for collegiate registration plates designed for the
 52 27 university.  The moneys credited are appropriated to the
 52 28 respective universities to be used for scholarships for
 52 29 students attending the universities.
 52 30    Sec. 61.  Section 321.34, subsection 10, paragraph c, Code
 52 31 Supplement 2007, is amended to read as follows:
 52 32    c.  The special fees collected by the director under this
 52 33 subsection shall be paid monthly to the treasurer of state and
 52 34 credited to deposited in the road use tax fund.
 52 35 Notwithstanding section 423.43, and prior to the crediting of
 53  1 revenues to the road use tax fund under section 423.43,
 53  2 subsection 1, paragraph "b", the The treasurer of state shall
 53  3 transfer monthly from those revenues the statutory allocations
 53  4 fund created under section 321.145, subsection 2, to the Paul
 53  5 Ryan memorial fire fighter safety training fund created
 53  6 pursuant to section 100B.12 the amount of the special fees
 53  7 collected in the previous month for the fire fighter plates.
 53  8    Sec. 62.  Section 321.34, subsection 10A, paragraph b, Code
 53  9 Supplement 2007, is amended to read as follows:
 53 10    b.  The special fees collected by the director under this
 53 11 subsection shall be paid monthly to the treasurer of state and
 53 12 credited to deposited in the road use tax fund.
 53 13 Notwithstanding section 423.43, and prior to the crediting of
 53 14 revenues to the road use tax fund under section 423.43,
 53 15 subsection 1, paragraph "b", the The treasurer of state shall
 53 16 transfer monthly from those revenues the statutory allocations
 53 17 fund created under section 321.145, subsection 2, to the
 53 18 emergency medical services fund created in section 135.25 the
 53 19 amount of the special fees collected in the previous month for
 53 20 issuance of emergency medical services plates.
 53 21    Sec. 63.  Section 321.34, subsection 11, paragraph c, Code
 53 22 Supplement 2007, is amended to read as follows:
 53 23    c.  (1)  The special natural resources fee for letter
 53 24 number designated natural resources plates is forty=five
 53 25 dollars.  The fee for personalized natural resources plates is
 53 26 forty=five dollars which shall be paid in addition to the
 53 27 special natural resources fee of forty=five dollars.  The fees
 53 28 collected by the director under this subsection shall be paid
 53 29 monthly to the treasurer of state and credited to deposited in
 53 30 the road use tax fund.  Notwithstanding section 423.43, and
 53 31 prior to the crediting of revenues to the road use tax fund
 53 32 under section 423.43, subsection 1, paragraph "b", the The
 53 33 treasurer of state shall credit monthly from those revenues
 53 34 the statutory allocations fund created under section 321.145,
 53 35 subsection 2, to the Iowa resources enhancement and protection
 54  1 fund created pursuant to section 455A.18, the amount of the
 54  2 special natural resources fees collected in the previous month
 54  3 for the natural resources plates.
 54  4    (2)  From the moneys credited to the Iowa resources
 54  5 enhancement and protection fund under this paragraph "c",
 54  6 subparagraph (1), ten dollars of the fee collected for each
 54  7 natural resources plate issued, and fifteen dollars from each
 54  8 renewal fee, shall be allocated to the department of natural
 54  9 resources wildlife bureau to be used for nongame wildlife
 54 10 programs.
 54 11    Sec. 64.  Section 321.34, subsection 11A, paragraph c, Code
 54 12 Supplement 2007, is amended to read as follows:
 54 13    c.  The special fee for letter number designated love our
 54 14 kids plates is thirty=five dollars.  The fee for personalized
 54 15 love our kids plates is twenty=five dollars, which shall be
 54 16 paid in addition to the special love our kids fee of
 54 17 thirty=five dollars.  The fees collected by the director under
 54 18 this subsection shall be paid monthly to the treasurer of
 54 19 state and credited to deposited in the road use tax fund.
 54 20 Notwithstanding section 423.43, and prior to the crediting of
 54 21 revenues to the road use tax fund under section 423.43,
 54 22 subsection 1, paragraph "b", the The treasurer of state shall
 54 23 transfer monthly from those revenues the statutory allocations
 54 24 fund created under section 321.145, subsection 2, to the Iowa
 54 25 department of public health the amount of the special fees
 54 26 collected in the previous month for the love our kids plates.
 54 27 Notwithstanding section 8.33, moneys transferred under this
 54 28 subsection shall not revert to the general fund of the state.
 54 29    Sec. 65.  Section 321.34, subsection 11B, paragraph c, Code
 54 30 Supplement 2007, is amended to read as follows:
 54 31    c.  The special fee for letter number designated motorcycle
 54 32 rider education plates is thirty=five dollars.  The fee for
 54 33 personalized motorcycle rider education plates is twenty=five
 54 34 dollars, which shall be paid in addition to the special
 54 35 motorcycle rider education fee of thirty=five dollars.  The
 55  1 fees collected by the director under this subsection shall be
 55  2 paid monthly to the treasurer of state and credited to
 55  3 deposited in the road use tax fund.  Notwithstanding section
 55  4 423.43, and prior to the crediting of revenues to the road use
 55  5 tax fund under section 423.43, subsection 1, paragraph "b",
 55  6 the The treasurer of state shall transfer monthly from those
 55  7 revenues the statutory allocations fund created under section
 55  8 321.145, subsection 2, to the department for use in accordance
 55  9 with section 321.180B, subsection 6, the amount of the special
 55 10 fees collected in the previous month for the motorcycle rider
 55 11 education plates.
 55 12    Sec. 66.  Section 321.34, subsection 13, paragraph d, Code
 55 13 Supplement 2007, is amended to read as follows:
 55 14    d.  A state agency may submit a request to the department
 55 15 recommending a special registration plate.  The alternate fee
 55 16 for letter number designated plates is thirty=five dollars
 55 17 with a ten dollar annual special renewal fee.  The fee for
 55 18 personalized plates is twenty=five dollars which is in
 55 19 addition to the alternative fee of thirty=five dollars with an
 55 20 annual personalized plate renewal fee of five dollars which is
 55 21 in addition to the special renewal fee of ten dollars.  The
 55 22 alternate fees are in addition to the regular annual
 55 23 registration fee.  The alternate fees collected under this
 55 24 paragraph shall be paid monthly to the treasurer of state and
 55 25 credited to deposited in the road use tax fund.
 55 26 Notwithstanding section 423.43, and prior to the crediting of
 55 27 the revenues to the road use tax fund under section 423.43,
 55 28 subsection 1, paragraph "b", the The treasurer of state shall
 55 29 credit monthly from the statutory allocations fund created
 55 30 under section 321.145, subsection 2, the amount of the
 55 31 alternate fees collected in the previous month to the state
 55 32 agency that recommended the special registration plate.
 55 33    Sec. 67.  Section 321.34, subsection 16, unnumbered
 55 34 paragraph 1, Code Supplement 2007, is amended to read as
 55 35 follows:
 56  1    An owner referred to in subsection 12 who is a member of
 56  2 the national guard, as defined in chapter 29A, may, upon
 56  3 written application to the department, order special
 56  4 registration plates with a national guard processed emblem
 56  5 with the emblem designed by the department in cooperation with
 56  6 the adjutant general which emblem signifies that the applicant
 56  7 is a member of the national guard.  The application shall be
 56  8 approved by the department in consultation with the adjutant
 56  9 general.  The special plate fees collected by the director
 56 10 under subsection 12, paragraph "a", from the issuance and
 56 11 annual validation of letter=number designated and personalized
 56 12 national guard plates shall be paid monthly to the treasurer
 56 13 of state and credited to deposited in the road use tax fund.
 56 14 Notwithstanding section 423.43, and prior to the crediting of
 56 15 revenues to the road use tax fund under section 423.43,
 56 16 subsection 1, paragraph "b", the The treasurer of state shall
 56 17 transfer monthly from those revenues the statutory allocations
 56 18 fund created under section 321.145, subsection 2, to the
 56 19 veterans license fee fund created in section 35A.11 the amount
 56 20 of the special fees collected in the previous month for
 56 21 national guard plates.  Special registration plates with a
 56 22 national guard processed emblem shall be surrendered, as
 56 23 provided in subsection 12, in exchange for regular
 56 24 registration plates upon termination of the owner's membership
 56 25 in the active national guard.
 56 26    Sec. 68.  Section 321.34, subsection 17, unnumbered
 56 27 paragraph 1, Code Supplement 2007, is amended to read as
 56 28 follows:
 56 29    An owner referred to in subsection 12 who was at Pearl
 56 30 Harbor, Hawaii, as a member of the armed services of the
 56 31 United States on December 7, 1941, may, upon written
 56 32 application to the department, order special registration
 56 33 plates with a Pearl Harbor processed emblem.  The emblem shall
 56 34 be designed by the department in consultation with service
 56 35 organizations.  The application is subject to approval by the
 57  1 department.  The special plate fees collected by the director
 57  2 under subsection 12, paragraph "a", from the issuance and
 57  3 annual validation of letter=number designated and personalized
 57  4 Pearl Harbor plates shall be paid monthly to the treasurer of
 57  5 state and credited to deposited in the road use tax fund.
 57  6 Notwithstanding section 423.43, and prior to the crediting of
 57  7 revenues to the road use tax fund under section 423.43,
 57  8 subsection 1, paragraph "b", the The treasurer of state shall
 57  9 transfer monthly from those revenues the statutory allocations
 57 10 fund created under section 321.145, subsection 2, to the
 57 11 veterans license fee fund created in section 35A.11 the amount
 57 12 of the special fees collected in the previous month for Pearl
 57 13 Harbor plates.
 57 14    Sec. 69.  Section 321.34, subsection 18, unnumbered
 57 15 paragraph 1, Code Supplement 2007, is amended to read as
 57 16 follows:
 57 17    An owner referred to in subsection 12 who was awarded a
 57 18 purple heart medal by the United States government for wounds
 57 19 received in military or naval combat against an armed enemy of
 57 20 the United States may, upon written application to the
 57 21 department and presentation of satisfactory proof of the award
 57 22 of the purple heart medal, order special registration plates
 57 23 with a purple heart processed emblem.  The design of the
 57 24 emblem shall include a representation of a purple heart medal
 57 25 and ribbon.  The application is subject to approval by the
 57 26 department in consultation with the adjutant general.  The
 57 27 special plate fees collected by the director under subsection
 57 28 12, paragraph "a", from the issuance and annual validation of
 57 29 letter=number designated and personalized purple heart plates
 57 30 shall be paid monthly to the treasurer of state and credited
 57 31 to deposited in the road use tax fund.  Notwithstanding
 57 32 section 423.43, and prior to the crediting of revenues to the
 57 33 road use tax fund under section 423.43, subsection 1,
 57 34 paragraph "b", the The treasurer of state shall transfer
 57 35 monthly from those revenues the statutory allocations fund
 58  1 created under section 321.145, subsection 2, to the veterans
 58  2 license fee fund created in section 35A.11 the amount of the
 58  3 special fees collected in the previous month for purple heart
 58  4 plates.
 58  5    Sec. 70.  Section 321.34, subsection 19, unnumbered
 58  6 paragraph 1, Code Supplement 2007, is amended to read as
 58  7 follows:
 58  8    An owner referred to in subsection 12 who is a retired
 58  9 member of the United States armed forces may, upon written
 58 10 application to the department and upon presentation of
 58 11 satisfactory proof of membership, order special registration
 58 12 plates with a United States armed forces retired processed
 58 13 emblem.  The emblem shall be designed by the department in
 58 14 consultation with service organizations.  The application is
 58 15 subject to approval by the department.  For purposes of this
 58 16 subsection, a person is considered to be retired if the person
 58 17 is recognized by the United States armed forces as retired
 58 18 from the United States armed forces.  The special plate fees
 58 19 collected by the director under subsection 12, paragraph "a",
 58 20 from the issuance and annual validation of letter=number
 58 21 designated and personalized armed forces retired plates shall
 58 22 be paid monthly to the treasurer of state and credited to
 58 23 deposited in the road use tax fund.  Notwithstanding section
 58 24 423.43, and prior to the crediting of revenues to the road use
 58 25 tax fund under section 423.43, subsection 1, paragraph "b",
 58 26 the The treasurer of state shall transfer monthly from those
 58 27 revenues the statutory allocations fund created under section
 58 28 321.145, subsection 2, to the veterans license fee fund
 58 29 created in section 35A.11 the amount of the special fees
 58 30 collected in the previous month for armed forces retired
 58 31 plates.
 58 32    Sec. 71.  Section 321.34, subsection 20, unnumbered
 58 33 paragraph 1, Code Supplement 2007, is amended to read as
 58 34 follows:
 58 35    An owner referred to in subsection 12 who was awarded a
 59  1 silver or a bronze star by the United States government, may,
 59  2 upon written application to the department and presentation of
 59  3 satisfactory proof of the award of the silver or bronze star,
 59  4 order special registration plates with a silver or bronze star
 59  5 processed emblem.  The emblem shall be designed by the
 59  6 department in consultation with the adjutant general.  The
 59  7 special plate fees collected by the director under subsection
 59  8 12, paragraph "a", from the issuance and annual validation of
 59  9 letter=number designated and personalized silver star and
 59 10 bronze star plates shall be paid monthly to the treasurer of
 59 11 state and credited to deposited in the road use tax fund.
 59 12 Notwithstanding section 423.43, and prior to the crediting of
 59 13 revenues to the road use tax fund under section 423.43,
 59 14 subsection 1, paragraph "b", the The treasurer of state shall
 59 15 transfer monthly from those revenues the statutory allocations
 59 16 fund created under section 321.145, subsection 2, to the
 59 17 veterans license fee fund created in section 35A.11 the amount
 59 18 of the special fees collected in the previous month for silver
 59 19 star and bronze star plates.
 59 20    Sec. 72.  Section 321.34, subsection 20A, unnumbered
 59 21 paragraph 1, Code Supplement 2007, is amended to read as
 59 22 follows:
 59 23    An owner referred to in subsection 12 who was awarded a
 59 24 distinguished service cross, a navy cross, or an air force
 59 25 cross by the United States government may, upon written
 59 26 application to the department and presentation of satisfactory
 59 27 proof of the award, order special registration plates with a
 59 28 distinguished service cross, navy cross, or air force cross
 59 29 processed emblem.  The emblem shall be designed by the
 59 30 department in consultation with the adjutant general.  The
 59 31 special plate fees collected by the director under subsection
 59 32 12, paragraph "a", from the issuance and annual validation of
 59 33 letter=number designated and personalized distinguished
 59 34 service cross, navy cross, and air force cross plates shall be
 59 35 paid monthly to the treasurer of state and credited to
 60  1 deposited in the road use tax fund.  Notwithstanding section
 60  2 423.43, and prior to the crediting of revenues to the road use
 60  3 tax fund under section 423.43, subsection 1, paragraph "b",
 60  4 the The treasurer of state shall transfer monthly from those
 60  5 revenues the statutory allocations fund created under section
 60  6 321.145, subsection 2, to the veterans license fee fund
 60  7 created in section 35A.11 the amount of the special fees
 60  8 collected in the previous month for distinguished service
 60  9 cross, navy cross, and air force cross plates.
 60 10    Sec. 73.  Section 321.34, subsection 20B, unnumbered
 60 11 paragraph 1, Code Supplement 2007, is amended to read as
 60 12 follows:
 60 13    An owner referred to in subsection 12 who was awarded a
 60 14 soldier's medal, a navy and marine corps medal, or an airman's
 60 15 medal by the United States government may, upon written
 60 16 application to the department and presentation of satisfactory
 60 17 proof of the award, order special registration plates with a
 60 18 soldier's medal, navy and marine corps medal, or airman's
 60 19 medal processed emblem.  The emblem shall be designed by the
 60 20 department in consultation with the adjutant general.  The
 60 21 special plate fees collected by the director under subsection
 60 22 12, paragraph "a", from the issuance and annual validation of
 60 23 letter=number designated and personalized soldier's medal,
 60 24 navy and marine corps medal, and airman's medal plates shall
 60 25 be paid monthly to the treasurer of state and credited to
 60 26 deposited in the road use tax fund.  Notwithstanding section
 60 27 423.43, and prior to the crediting of revenues to the road use
 60 28 tax fund under section 423.43, subsection 1, paragraph "b",
 60 29 the The treasurer of state shall transfer monthly from those
 60 30 revenues the statutory allocations fund created under section
 60 31 321.145, subsection 2, to the veterans license fee fund
 60 32 created in section 35A.11 the amount of the special fees
 60 33 collected in the previous month for soldier's medal, navy and
 60 34 marine corps medal, and airman's medal plates.
 60 35    Sec. 74.  Section 321.34, subsection 21, paragraph c, Code
 61  1 Supplement 2007, is amended to read as follows:
 61  2    c.  The special fees collected by the director under this
 61  3 subsection shall be paid monthly to the treasurer of state and
 61  4 credited to deposited in the road use tax fund.
 61  5 Notwithstanding section 423.43, and prior to the crediting of
 61  6 revenues to the road use tax fund under section 423.43,
 61  7 subsection 1, paragraph "b", the The treasurer of state shall
 61  8 credit monthly from the statutory allocations fund created
 61  9 under section 321.145, subsection 2, to the Iowa heritage fund
 61 10 created under section 303.9A the amount of the special fees
 61 11 collected in the previous month for the Iowa heritage plates.
 61 12    Sec. 75.  Section 321.34, subsection 22, paragraph b, Code
 61 13 Supplement 2007, is amended to read as follows:
 61 14    b.  The special school transportation fee for letter number
 61 15 designated education plates is thirty=five dollars.  The fee
 61 16 for personalized education plates is twenty=five dollars,
 61 17 which shall be paid in addition to the special school
 61 18 transportation fee of thirty=five dollars.  The annual special
 61 19 school transportation fee is ten dollars for letter number
 61 20 designated registration plates and is fifteen dollars for
 61 21 personalized registration plates which shall be paid in
 61 22 addition to the regular annual registration fee.  The fees
 61 23 collected by the director under this subsection shall be paid
 61 24 monthly to the treasurer of state and credited to deposited in
 61 25 the road use tax fund.  Notwithstanding section 423.43, and
 61 26 prior to the crediting of revenues to the road use tax fund
 61 27 under section 423.43, subsection 1, paragraph "b", the The
 61 28 treasurer of state shall transfer monthly from those revenues
 61 29 the statutory allocations fund created under section 321.145,
 61 30 subsection 2, to the school budget review committee in
 61 31 accordance with section 257.31, subsection 17, the amount of
 61 32 the special school transportation fees collected in the
 61 33 previous month for the education plates.
 61 34    Sec. 76.  Section 321.34, subsection 23, paragraph c, Code
 61 35 Supplement 2007, is amended to read as follows:
 62  1    c.  The special fee for letter number designated breast
 62  2 cancer awareness plates is thirty=five dollars.  The fee for
 62  3 personalized breast cancer awareness plates is twenty=five
 62  4 dollars, which shall be paid in addition to the special breast
 62  5 cancer awareness fee of thirty=five dollars.  The fees
 62  6 collected by the director under this subsection shall be paid
 62  7 monthly to the treasurer of state and credited to deposited in
 62  8 the road use tax fund.  Notwithstanding section 423.43, and
 62  9 prior to the crediting of revenues to the road use tax fund
 62 10 under section 423.43, subsection 1, paragraph "b", the The
 62 11 treasurer of state shall transfer monthly from those revenues
 62 12 the statutory allocations fund created under section 321.145,
 62 13 subsection 2, to the Iowa department of public health the
 62 14 amount of the special fees collected in the previous month for
 62 15 the breast cancer awareness plates and such funds are
 62 16 appropriated to the Iowa department of public health.  The
 62 17 Iowa department of public health shall distribute one hundred
 62 18 percent of the funds received monthly in the form of grants to
 62 19 support breast cancer screenings for both men and women who
 62 20 meet eligibility requirements like those established by the
 62 21 Susan G. Komen foundation.  In the awarding of grants, the
 62 22 Iowa department of public health shall give first
 62 23 consideration to affiliates of the Susan G. Komen foundation
 62 24 and similar nonprofit organizations providing for breast
 62 25 cancer screenings at no cost in Iowa.  Notwithstanding section
 62 26 8.33, moneys transferred under this subsection shall not
 62 27 revert to the general fund of the state.
 62 28    Sec. 77.  Section 321.34, subsection 24, Code Supplement
 62 29 2007, is amended to read as follows:
 62 30    24.  GOLD STAR PLATES.  An owner referred to in subsection
 62 31 12 who is the surviving spouse, parent, child, or sibling of a
 62 32 deceased member of the United States armed forces who died
 62 33 while serving on active duty during a time of military
 62 34 conflict may order special registration plates bearing a gold
 62 35 star emblem upon written application to the department
 63  1 accompanied by satisfactory supporting documentation as
 63  2 determined by the department.  The gold star emblem shall be
 63  3 designed by the department in cooperation with the commission
 63  4 of veterans affairs.  The special plate fees collected by the
 63  5 director under subsection 12, paragraph "a", from the issuance
 63  6 and annual validation of letter=number designated and
 63  7 personalized gold star plates shall be paid monthly to the
 63  8 treasurer of state and credited to deposited in the road use
 63  9 tax fund.  Notwithstanding section 423.43, and prior to the
 63 10 crediting of revenues to the road use tax fund under section
 63 11 423.43, subsection 1, paragraph "b", the The treasurer of
 63 12 state shall transfer monthly from those revenues the statutory
 63 13 allocations fund created under section 321.145, subsection 2,
 63 14 to the veterans license fee fund created in section 35A.11 the
 63 15 amount of the special fees collected in the previous month for
 63 16 gold star plates.
 63 17    Sec. 78.  Section 321.39, subsections 3 and 4, Code 2007,
 63 18 are amended to read as follows:
 63 19    3.  For vehicles on which the first installment of an
 63 20 annual registration fee has been paid, at midnight on the last
 63 21 day of June or the first business day of July when June 30
 63 22 falls on Saturday, Sunday, or a holiday; for vehicles on which
 63 23 the second installment of an annual registration fee has been
 63 24 paid, at midnight on the last day of December or the first
 63 25 business day of January when December 31 falls on Saturday,
 63 26 Sunday, or a holiday.
 63 27    4.  For vehicles registered without payment of annual
 63 28 registration fees as provided in section 321.19, when
 63 29 designated by the department.
 63 30    5.  Registration for every vehicle registered by the county
 63 31 treasurer shall expire upon transfer of ownership.
 63 32    Sec. 79.  Section 321.40, subsection 1, Code Supplement
 63 33 2007, is amended to read as follows:
 63 34    1.  Application for renewal of a vehicle registration shall
 63 35 be made on or after the first day of the month prior to the
 64  1 month of expiration of registration and up to and including
 64  2 the last day of the month following the month of expiration of
 64  3 registration.  The registration shall be renewed upon payment
 64  4 of the appropriate annual registration fee.  Application for
 64  5 renewal for a vehicle registered under chapter 326 shall be
 64  6 made on or after the first day of the month of expiration of
 64  7 registration and up to and including the last day of the month
 64  8 following the month of expiration of registration.
 64  9    Sec. 80.  Section 321.46, subsections 2, 3, 4, 6, and 7,
 64 10 Code 2007, are amended to read as follows:
 64 11    2.  Upon filing the application for a new registration and
 64 12 a new title, the applicant shall pay a title fee of ten
 64 13 dollars and a, an annual registration fee prorated for the
 64 14 remaining unexpired months of the registration year, and a fee
 64 15 for new registration if applicable.  A manufacturer applying
 64 16 for a certificate of title pursuant to section 322G.12 shall
 64 17 pay a title fee of two dollars.  However, a title fee shall
 64 18 not be charged to a manufactured or mobile home retailer
 64 19 applying for a certificate of title for a used mobile home or
 64 20 manufactured home, titled in Iowa, as required under section
 64 21 321.45, subsection 4.  The county treasurer, if satisfied of
 64 22 the genuineness and regularity of the application, and in the
 64 23 case of a mobile home or manufactured home, that taxes are not
 64 24 owing under chapter 435, and that applicant has complied with
 64 25 all the requirements of this chapter, shall issue a new
 64 26 certificate of title and, except for a mobile home,
 64 27 manufactured home, or a vehicle returned to and accepted by a
 64 28 manufacturer as described in section 322G.12, a registration
 64 29 card to the purchaser or transferee, shall cancel the prior
 64 30 registration for the vehicle, and shall forward the necessary
 64 31 copies to the department on the date of issuance, as
 64 32 prescribed in section 321.24.  Mobile homes or manufactured
 64 33 homes titled under chapter 448 that have been subject under
 64 34 section 446.18 to a public bidder sale in a county shall be
 64 35 titled in the county's name, with no fee, and the county
 65  1 treasurer shall issue the title.
 65  2    3.  The applicant shall be entitled to a credit for that
 65  3 portion of the annual registration fee of the vehicle sold,
 65  4 traded, or junked which had not expired prior to the transfer
 65  5 of ownership of the vehicle.  The annual registration fee for
 65  6 the new registration for the vehicle acquired shall be reduced
 65  7 by the amount of the credit.  The credit shall be computed on
 65  8 the basis of the number of months remaining in the
 65  9 registration year, rounded to the nearest whole dollar.  The
 65 10 credit shall be subject to the following limitations:
 65 11    a.  The credit shall be claimed within thirty days from the
 65 12 date the vehicle for which credit is granted was sold,
 65 13 transferred, or junked.  After thirty days, all credits shall
 65 14 be disallowed.
 65 15    b.  Any credit granted to the owner of a vehicle which has
 65 16 been sold, traded, or junked may only be claimed by that
 65 17 person toward the annual registration fee for another vehicle
 65 18 purchased and the credit may not be sold, transferred, or
 65 19 assigned to any other person.
 65 20    c.  When the amount of the credit is computed to be an
 65 21 amount of less than ten dollars, a credit shall be disallowed.
 65 22    d.  To claim a credit for the unexpired annual registration
 65 23 fee on a junked vehicle, the county treasurer shall disallow
 65 24 any claim for credit unless the owner presents a junking
 65 25 certificate or other evidence as required by the department to
 65 26 the county treasurer.
 65 27    e.  A credit shall not be allowed to any person who has
 65 28 made claim to receive a refund under section 321.126.
 65 29    f.  If the credit allowed exceeds the amount of the annual
 65 30 registration fee for the vehicle acquired, the owner may claim
 65 31 a refund under section 321.126, subsection 6, for the balance
 65 32 of the credit.
 65 33    g.  The credit shall be computed on the unexpired number of
 65 34 months computed from the date of purchase of the vehicle
 65 35 acquired.
 66  1    4.  If the annual registration fee upon application is
 66  2 delinquent, the applicant shall be required to pay the
 66  3 delinquent fee from the first day the annual registration fee
 66  4 was due prorated to the month of application for new title.
 66  5    6.  An applicant for a new registration for a vehicle
 66  6 transferred to the applicant by a spouse, parent, or child of
 66  7 the applicant, or by operation of law upon inheritance, devise
 66  8 or bequest, from the applicant's spouse, parent, or child, or
 66  9 by a former spouse pursuant to a decree of dissolution of
 66 10 marriage, is entitled to a credit to be applied to the annual
 66 11 registration fee for the transferred vehicle.  A credit shall
 66 12 not be allowed unless the vehicle to which the credit applies
 66 13 is registered within the time specified under subsection 1.
 66 14 The credit shall be computed on the basis of the number of
 66 15 unexpired months remaining in the registration year of the
 66 16 former owner computed from the date the vehicle was
 66 17 transferred, computed to the nearest whole dollar.  The credit
 66 18 may exceed the amount of the annual registration fee for the
 66 19 transferred vehicle.  When the amount of the credit is
 66 20 computed to be an amount of less than ten dollars, the credit
 66 21 shall be disallowed.  The credit shall not be sold,
 66 22 transferred, or assigned to any other person.
 66 23    7.  If a motor vehicle is leased and the lessee purchases
 66 24 the vehicle upon termination of the lease, the lessor shall,
 66 25 upon claim by the lessee with the lessor within thirty days of
 66 26 the purchase, assign the annual registration fee credit and
 66 27 registration plates for the leased motor vehicle to the
 66 28 lessee.  Credit shall be applied as provided in subsection 3.
 66 29    Sec. 81.  Section 321.46A, Code 2007, is amended to read as
 66 30 follows:
 66 31    321.46A  CHANGE FROM PROPORTIONAL REGISTRATION == CREDIT.
 66 32    An owner changing a vehicle's registration from
 66 33 proportional registration under chapter 326 to registration
 66 34 under this chapter shall be entitled to a credit on the
 66 35 vehicle's annual registration fees under this chapter.  The
 67  1 credit shall be allowed when the owner surrenders to the
 67  2 county treasurer proof of proportional registration provided
 67  3 by the department.  The amount of the credit shall be
 67  4 calculated based on the unexpired complete calendar months
 67  5 remaining in the registration year from the date the
 67  6 application is filed with the county treasurer.
 67  7    Sec. 82.  Section 321.52, subsections 1 and 3, Code
 67  8 Supplement 2007, are amended to read as follows:
 67  9    1.  When a vehicle is sold outside the state for purposes
 67 10 other than for junk, the owner, dealer or otherwise, shall
 67 11 detach the registration plates and registration card and shall
 67 12 indicate on the registration card the name and address of the
 67 13 foreign purchaser or transferee over the person's signature.
 67 14 Unless the registration plates are legally attached to another
 67 15 vehicle, the owner shall surrender the registration plates and
 67 16 registration card to the county treasurer, who shall cancel
 67 17 the records, destroy the registration plates, and forward the
 67 18 registration card to the department.  The department shall
 67 19 make a notation on the records of the out=of=state sale and,
 67 20 after a reasonable period, may destroy the files for that
 67 21 particular vehicle.  The department is not authorized to make
 67 22 a refund of annual registration fees on a vehicle sold out of
 67 23 state unless it receives the registration card completed as
 67 24 provided in this section.
 67 25    3.  When a vehicle for which a certificate of title is
 67 26 issued is junked or dismantled by the owner, the owner shall
 67 27 detach the registration plates and surrender the plates to the
 67 28 county treasurer, unless the plates are properly assigned to
 67 29 another vehicle.  The owner shall also surrender the
 67 30 certificate of title to the county treasurer.  Upon
 67 31 surrendering the certificate of title and application for
 67 32 junking certificate, the county treasurer shall issue to the
 67 33 person, without fee, a junking certificate, which shall
 67 34 authorize the holder to possess, transport or transfer
 67 35 ownership of the junked vehicle by endorsement of the junking
 68  1 certificate.  The county treasurer shall hold the surrendered
 68  2 certificate of title, registration receipt, application for
 68  3 junking certificate, and, if applicable, the registration
 68  4 plates for a period of fourteen days following the issuance of
 68  5 a junking certificate under this subsection.  Within the
 68  6 fourteen=day period the person who was issued the junking
 68  7 certificate and to whom the vehicle was titled or assigned may
 68  8 surrender to the county treasurer the junking certificate, and
 68  9 upon the person's payment of appropriate fees and taxes and
 68 10 payment of any credit for annual registration fees received by
 68 11 the person for the vehicle under section 321.46, subsection 3,
 68 12 the county treasurer shall issue to the person a certificate
 68 13 of title for the vehicle.  After the expiration of the
 68 14 fourteen=day period, a county treasurer shall not issue a
 68 15 certificate of title for a junked vehicle for which a junking
 68 16 certificate is issued.  The county treasurer shall cancel the
 68 17 record of the vehicle and forward the certificate of title to
 68 18 the department.
 68 19    However, upon application the department upon a showing of
 68 20 good cause may issue a certificate of title after the
 68 21 fourteen=day period for a junked vehicle for which a junking
 68 22 certificate has been issued.  For purposes of this subsection,
 68 23 "good cause" means that the junking certificate was obtained
 68 24 by mistake or inadvertence.  If a person's application to the
 68 25 department is denied, the person may make application for a
 68 26 certificate of title under the bonding procedure as provided
 68 27 in section 321.24, if the vehicle qualifies as an antique
 68 28 vehicle under section 321.115, subsection 1, or the person may
 68 29 seek judicial review as provided under sections 17A.19 and
 68 30 17A.20.
 68 31    Sec. 83.  Section 321.70, Code 2007, is amended to read as
 68 32 follows:
 68 33    321.70  DEALER VEHICLES.
 68 34    A dealer registered under this chapter shall not be
 68 35 required to register any vehicle owned by the dealer which is
 69  1 being held for sale or trade, provided the annual registration
 69  2 fee was not delinquent at the time the vehicle was acquired by
 69  3 the dealer.  When a dealer ceases to hold any vehicle for sale
 69  4 or trade or the vehicle otherwise becomes subject to
 69  5 registration under this chapter the annual registration fee
 69  6 and delinquent annual registration fee, if any, shall be due
 69  7 for the registration year.
 69  8    Sec. 84.  Section 321.101, subsection 1, paragraph d, Code
 69  9 Supplement 2007, is amended to read as follows:
 69 10    d.  When the department determines that the required annual
 69 11 registration fee has not been paid and the fee is not paid
 69 12 upon reasonable notice and demand.
 69 13    Sec. 85.  Section 321.101A, Code 2007, is amended to read
 69 14 as follows:
 69 15    321.101A  REVOCATION OF REGISTRATION BY COUNTY TREASURER.
 69 16    The county treasurer may revoke the registration and
 69 17 registration plates of a vehicle if the annual registration
 69 18 fees are fee or the fee for new registration is paid by check,
 69 19 electronic payment, or credit card and the check, electronic
 69 20 payment, or credit card is not honored by the payer's
 69 21 financial institution or credit card company, upon reasonable
 69 22 notice and demand.  The owner of the vehicle or person in
 69 23 possession of the registration and registration plates for the
 69 24 vehicle shall immediately return the revoked registration and
 69 25 registration plates to the appropriate county treasurer's
 69 26 office.
 69 27    Sec. 86.  Section 321.105, Code 2007, is amended to read as
 69 28 follows:
 69 29    321.105  ANNUAL REGISTRATION FEE REQUIRED.
 69 30    1.  An annual registration fee shall be paid for each
 69 31 vehicle operated upon the public highways of this state unless
 69 32 the vehicle is specifically exempted under this chapter. If a
 69 33 vehicle, which has been registered for the current
 69 34 registration year, is transferred during the registration
 69 35 year, the transferee shall reregister the vehicle as provided
 70  1 in section 321.46.
 70  2    2.  The annual registration fee shall be paid to the county
 70  3 treasurer at the same time the application is made for the
 70  4 registration or reregistration of the motor vehicle or
 70  5 trailer.  An owner may, when applying for registration or
 70  6 reregistration of a motor vehicle or trailer, request that the
 70  7 plates be mailed to the owner's post=office address.  The
 70  8 owner's request shall be accompanied by a mailing fee as
 70  9 determined annually by the director in consultation with the
 70 10 Iowa county treasurers association.
 70 11    3.  Upon application by a financial institution, as defined
 70 12 in section 422.61, and approval of the application by the
 70 13 county treasurer, the county treasurer in any county may
 70 14 authorize the financial institution to receive applications
 70 15 for renewal of vehicle registrations and payment of the annual
 70 16 registration fees.  The annual registration fees shall be
 70 17 delivered to the county treasurer at the time the county
 70 18 treasurer has processed the vehicle registration application.
 70 19 Registration Annual registration fees received with vehicle
 70 20 registration applications shall be designated as public funds
 70 21 only upon receipt of such funds by the county treasurer from
 70 22 the financial institution.
 70 23    4.  In addition to the payment of an annual registration
 70 24 fee for each trailer and semitrailer to be issued an annual
 70 25 registration plate, an additional registration fee may be paid
 70 26 for a period of two or four subsequent registration years.
 70 27    5.  Seriously disabled veterans who have been provided with
 70 28 an automobile or other vehicle by the United States government
 70 29 under the provisions of sections 1901 to 1903, Title 38 of the
 70 30 United States Code, 38 U.S.C. } 1901 et seq. (1970), shall be
 70 31 exempt from payment of any automobile registration fee
 70 32 provided in this chapter, and shall be provided, without fee,
 70 33 with a registration plate.  The disabled veteran, to be able
 70 34 to claim the above benefit, must be a resident of the state of
 70 35 Iowa.  The disabled veteran may obtain a special or
 71  1 personalized plate under section 321.34 by paying the
 71  2 difference between the fee for a regular registration plate
 71  3 and the fee for the special or personalized registration
 71  4 plate.
 71  5    Sec. 87.  Section 321.106, subsections 1, 2, and 4, Code
 71  6 2007, are amended to read as follows:
 71  7    1.  When a vehicle is registered under chapter 326 or a
 71  8 motor truck, truck tractor, or road tractor is registered for
 71  9 a combined gross weight exceeding five tons and there is no
 71 10 delinquency and the registration is made in February or
 71 11 succeeding months through November, the annual registration
 71 12 fee shall be prorated for the remaining unexpired months of
 71 13 the registration year.  A fee shall not be required for the
 71 14 month of December for a vehicle registered on a calendar year
 71 15 basis on which there is no delinquency.  However, except for a
 71 16 vehicle registered under chapter 326, when such a vehicle is
 71 17 registered in November, the vehicle may be registered for the
 71 18 remaining unexpired months of the registration year or for the
 71 19 remaining unexpired months of the registration year and for
 71 20 the next registration year, upon payment of the applicable
 71 21 registration fees.
 71 22    2.  When a vehicle is registered on a birth month basis and
 71 23 there is no delinquency and the registration is made in the
 71 24 month after the beginning of the registration year or
 71 25 succeeding months, the annual registration fee shall be
 71 26 prorated for the remaining unexpired months of the
 71 27 registration year.  A fee shall not be required for the month
 71 28 of the owner's birthday for a vehicle on which there is no
 71 29 delinquency.  However, when a vehicle registered on a birth
 71 30 month basis is registered during the eleventh month of the
 71 31 registration year, the vehicle may be registered for the
 71 32 remaining unexpired months of the registration year or for the
 71 33 remaining unexpired months of the registration year and for
 71 34 the next registration year, upon payment of the applicable
 71 35 registration fees.
 72  1    4.  A reduction in the annual registration fee shall not be
 72  2 allowed by the department until the applicant files
 72  3 satisfactory evidence to prove that there is no delinquency in
 72  4 registration.
 72  5    Sec. 88.  Section 321.109, subsection 3, Code 2007, is
 72  6 amended to read as follows:
 72  7    3.  The owner of an unregistered motor vehicle or motor
 72  8 vehicle for which the registration is delinquent may make
 72  9 application to the county treasurer of the county of residence
 72 10 or, if the unregistered or delinquent motor vehicle is
 72 11 purchased by a nonresident of the state, to the county
 72 12 treasurer in the county of purchase, for a temporary
 72 13 thirty=day permit for a fee of twenty=five dollars.  The
 72 14 permit shall authorize the motor vehicle to be driven or towed
 72 15 upon the highway, but shall not authorize a motor truck or
 72 16 truck tractor to haul or tow a load.  The permit fee shall not
 72 17 be considered a registration fee or exempt the owner from
 72 18 payment of all other fees, registration fees, and penalties
 72 19 due.  If the annual registration fee for the motor vehicle is
 72 20 delinquent, the annual registration fee and penalty shall
 72 21 continue to accrue until paid.  The permit fee shall not be
 72 22 prorated, refunded, or used as credit as provided under
 72 23 section 321.46.  The permit shall be displayed in the upper
 72 24 left=hand corner of the rear window of all motor vehicles,
 72 25 except motorcycles.  Permits issued for a motorcycle shall be
 72 26 attached to the rear of the motorcycle.
 72 27    Sec. 89.  Section 321.110, Code 2007, is amended to read as
 72 28 follows:
 72 29    321.110  REJECTING FRACTIONAL DOLLARS.
 72 30    When the annual registration fee, computed according to
 72 31 section 321.109, subsection 1, totals a fraction over a
 72 32 certain number of dollars the fee shall be arrived at by
 72 33 computing to the nearest even dollar.
 72 34    Sec. 90.  Section 321.113, Code 2007, is amended to read as
 72 35 follows:
 73  1    321.113  AUTOMATIC REDUCTION.
 73  2    1.  The annual registration fee for a motor vehicle shall
 73  3 not be automatically reduced under this section unless the
 73  4 registration fee is based on the value and weight of the motor
 73  5 vehicle as provided in section 321.109, subsection 1.
 73  6    2.  If a motor vehicle is more than five model years old,
 73  7 the part of the annual registration fee that is based on the
 73  8 value of the vehicle shall be seventy=five percent of the rate
 73  9 as fixed when the motor vehicle was new.
 73 10    3.  If a motor vehicle is more than six model years old,
 73 11 the part of the annual registration fee that is based on the
 73 12 value of the vehicle shall be fifty percent of the rate as
 73 13 fixed when the motor vehicle was new.
 73 14    4.  If a 1994 model year or newer motor vehicle is nine
 73 15 model years old or older the annual registration fee is
 73 16 thirty=five dollars.  For purposes of determining the portion
 73 17 of the annual registration fee under this subsection that is
 73 18 based upon the value of the motor vehicle, sixty percent of
 73 19 the annual registration fee is attributable to the value of
 73 20 the vehicle.
 73 21    5.  a.  If a 1993 model year or older motor vehicle has
 73 22 been titled in the same person's name since the vehicle was
 73 23 new or the title to the vehicle was transferred prior to
 73 24 January 1, 2002, the part of the annual registration fee that
 73 25 is based on the value of the vehicle shall be ten percent of
 73 26 the rate as fixed when the motor vehicle was new.
 73 27    b.  If the title of a 1993 model year or older motor
 73 28 vehicle is transferred to a new owner or if such a motor
 73 29 vehicle is brought into the state on or after January 1, 2002,
 73 30 the annual registration fee shall not be based on the weight
 73 31 and list price of the motor vehicle, but shall be as follows:
 73 32    (1)  For a motor vehicle that is model year
 73 33 1969 or older:........................................ $  16.00
 73 34    (2)  For a motor vehicle that is model year
 73 35 1970 through 1989:.................................... $  23.00
 74  1    (3)  For a motor vehicle that is model year
 74  2 1990 through 1993:.................................... $  27.00
 74  3    For purposes of determining the portion of the annual
 74  4 registration fee under this paragraph "b" that is based upon
 74  5 the value of the motor vehicle, sixty percent of the annual
 74  6 registration fee is attributable to the value of the vehicle.
 74  7    Sec. 91.  Section 321.117, Code 2007, is amended to read as
 74  8 follows:
 74  9    321.117  MOTORCYCLE, AMBULANCE, AND HEARSE FEES.
 74 10    For all motorcycles the annual registration fee shall be
 74 11 twenty dollars.  For all motorized bicycles the annual
 74 12 registration fee shall be seven dollars.  When the motorcycle
 74 13 is more than five model years old, the annual registration fee
 74 14 shall be ten dollars.  The annual registration fee for
 74 15 ambulances and hearses shall be fifty dollars.  Passenger car
 74 16 plates shall be issued for ambulances and hearses.
 74 17    Sec. 92.  Section 321.119, Code 2007, is amended to read as
 74 18 follows:
 74 19    321.119  CHURCH BUSES.
 74 20    For motor vehicles designed to carry nine passengers or
 74 21 more which are owned and used exclusively by a church or
 74 22 religious organization to transport passengers to and from
 74 23 activities of or sponsored by the church or religious
 74 24 organization and not operated for rent or hire for purposes
 74 25 unrelated to the activities of the church or religious
 74 26 organization, the annual registration fee shall be twenty=five
 74 27 dollars.
 74 28    Sec. 93.  Section 321.121, Code 2007, is amended to read as
 74 29 follows:
 74 30    321.121  SPECIAL TRUCKS FOR FARM USE.
 74 31    1.  The annual registration fee for a special truck shall
 74 32 be eighty dollars for a gross weight of six tons, one hundred
 74 33 dollars for a gross weight of seven tons, one hundred twenty
 74 34 dollars for a gross weight of eight tons, and in addition,
 74 35 fifteen dollars for each ton over eight tons and not exceeding
 75  1 eighteen tons.  The annual registration fee for a special
 75  2 truck with a gross weight registration exceeding eighteen tons
 75  3 but not exceeding nineteen tons shall be three hundred
 75  4 twenty=five dollars and for a gross weight registration
 75  5 exceeding nineteen tons but not exceeding twenty tons the
 75  6 annual registration fee shall be three hundred seventy=five
 75  7 dollars.  The additional annual registration fee for a special
 75  8 truck for a gross weight registration in excess of twenty tons
 75  9 is twenty=five dollars for each ton over twenty tons and not
 75 10 exceeding thirty=two tons.
 75 11    2.  A person convicted of or found by audit to be using a
 75 12 motor vehicle registered as a special truck for any purpose
 75 13 other than permitted by section 321.1, subsection 76, shall,
 75 14 in addition to any other penalty imposed by law, be required
 75 15 to pay regular annual motor vehicle registration fees upon for
 75 16 such motor vehicle.
 75 17    Sec. 94.  Section 321.123, unnumbered paragraph 1, Code
 75 18 2007, is amended to read as follows:
 75 19    All trailers except farm trailers, mobile homes, and
 75 20 manufactured homes, unless otherwise provided in this section,
 75 21 are subject to a an annual registration fee of ten dollars.
 75 22 Trailers for which the empty weight is two thousand pounds or
 75 23 less are exempt from the certificate of title and lien
 75 24 provisions of this chapter.  Fees collected under this section
 75 25 shall not be reduced or prorated under chapter 326.
 75 26    Sec. 95.  Section 321.123, subsection 1, unnumbered
 75 27 paragraph 1, Code 2007, is amended to read as follows:
 75 28    Travel trailers and fifth=wheel travel trailers, except
 75 29 those in manufacturer's or dealer's stock, shall be subject to
 75 30 an annual registration fee of twenty cents per square foot of
 75 31 floor space computed on the exterior overall measurements, but
 75 32 excluding three feet occupied by any trailer hitch as provided
 75 33 by and certified to by the owner, to the nearest whole dollar.
 75 34 When a travel trailer or fifth=wheel travel trailer is
 75 35 registered in Iowa for the first time or when title is
 76  1 transferred, the annual registration fee shall be prorated on
 76  2 a monthly basis.  The annual registration fee shall be reduced
 76  3 to seventy=five percent of the full fee after the vehicle is
 76  4 more than six model years old.
 76  5    Sec. 96.  Section 321.125, Code 2007, is amended to read as
 76  6 follows:
 76  7    321.125  EFFECT OF EXEMPTION.
 76  8    The exemption of a motor vehicle from a an annual
 76  9 registration fee or a fee for new registration shall not
 76 10 exempt the operator of such vehicle from the performance of
 76 11 any other duty imposed on the operator by this chapter.
 76 12    Sec. 97.  Section 321.126, Code 2007, is amended to read as
 76 13 follows:
 76 14    321.126  REFUNDS OF ANNUAL REGISTRATION FEES.
 76 15    Refunds of unexpired annual vehicle registration fees shall
 76 16 be allowed in accordance with this section, except that no
 76 17 refund shall be allowed and paid if the unused portion of the
 76 18 fee is less than ten dollars.  Subsections 1 and 2 do not
 76 19 apply to vehicles registered by the county treasurer.  The
 76 20 refunds shall be made as follows:
 76 21    1.  If the vehicle is destroyed by fire or accident, or
 76 22 junked and its identity as a vehicle entirely eliminated, the
 76 23 owner in whose name the vehicle was registered at the time of
 76 24 destruction or dismantling shall return the plates to the
 76 25 department and within thirty days thereafter make a statement
 76 26 of such destruction or dismantling and make claim for refund.
 76 27 With reference to the destruction or dismantling of a vehicle,
 76 28 no refund shall be allowed unless a junking certificate has
 76 29 been issued, as provided in section 321.52.
 76 30    2.  If the vehicle is stolen, the owner shall give notice
 76 31 of the theft to the department within five days.  If the
 76 32 vehicle is not recovered by the owner thirty days prior to the
 76 33 end of the current registration year, the owner shall make a
 76 34 statement of the theft and make claim for refund.
 76 35    3.  If the vehicle is placed in storage by the owner upon
 77  1 the owner's entry into the military service of the United
 77  2 States, the owner shall return the plates to the county
 77  3 treasurer or the department and make a statement regarding the
 77  4 storage and military service and make claim for refund.
 77  5 Whenever the owner of a vehicle so placed in storage desires
 77  6 to again register the vehicle, the county treasurer or
 77  7 department shall compute and collect the fees for registration
 77  8 for the registration year commencing in the month the vehicle
 77  9 is removed from storage.
 77 10    4.  If the vehicle is registered by the county treasurer
 77 11 during the current registration year and the owner or lessee
 77 12 registers the vehicle for proportional registration under
 77 13 chapter 326, the owner of the registered vehicle shall
 77 14 surrender the registration plates to the county treasurer and
 77 15 may file a claim for refund.  In lieu of a refund, a credit
 77 16 for the annual registration fees paid to the county treasurer
 77 17 may be applied by the department to the owner or lessee's
 77 18 proportional registration fees upon the surrender of the
 77 19 county plates and registration.
 77 20    5.  A refund for trailers and semitrailers issued a
 77 21 multiyear registration plate shall be paid by the department
 77 22 upon application.
 77 23    6.  If a vehicle is sold or junked, the owner in whose name
 77 24 the vehicle was registered may make claim to the county
 77 25 treasurer or department for a refund of the sold or junked
 77 26 vehicle's annual registration fee.  Also if the owner of a
 77 27 vehicle receives a vehicle registration fee credit under
 77 28 section 321.46, subsection 3, and the credit allowed exceeds
 77 29 the amount of the annual registration fee for the vehicle
 77 30 acquired, the owner may claim a refund for the balance of the
 77 31 credit.  The refund is subject to the following limitations:
 77 32    a.  If a vehicle registration fee credit has not been
 77 33 received by the owner of the vehicle under section 321.46,
 77 34 subsection 3, the refund shall be computed on the basis of the
 77 35 number of unexpired months remaining in the registration year
 78  1 at the time the vehicle was sold or junked.  The refund shall
 78  2 be rounded to the nearest whole dollar.  Section 321.127,
 78  3 subsection 1, does not apply.
 78  4    b.  The refund shall only be allowed if the owner makes
 78  5 claim for the refund within six months after the date of the
 78  6 vehicle's sale, trade, or junking.
 78  7    c.  This subsection does not apply to vehicles registered
 78  8 under chapter 326.
 78  9    7.  If the vehicle was leased and an affidavit was filed by
 78 10 the lessor or the lessee as provided in section 321.46, the
 78 11 lessor or the lessee, as applicable, may make a claim for a
 78 12 refund with the county treasurer of the county where the
 78 13 vehicle was registered within six months of the vehicle's
 78 14 surrender to the lessor.  The refund shall be paid to either
 78 15 the lessor or the lessee, as specified on the application for
 78 16 title and registration pursuant to section 321.20.
 78 17    8.  If the owner of the vehicle moves out of state, the
 78 18 owner may make a claim for a refund by returning the Iowa
 78 19 registration plates, along with evidence of the vehicle's
 78 20 registration in another jurisdiction, to the county treasurer
 78 21 of the county in which the vehicle was registered within six
 78 22 months of the out=of=state registration.  For purposes of
 78 23 section 321.127, the unexpired months remaining in the
 78 24 registration year shall be calculated on the basis of the
 78 25 effective date of the out=of=state registration.  However, for
 78 26 the purpose of timely issuance of the refund, the claim for a
 78 27 refund under this subsection is considered to be filed on the
 78 28 date the registration documents are received by the county
 78 29 treasurer.
 78 30    9.  Notwithstanding any provision of this section to the
 78 31 contrary, there shall be no refund of proportional
 78 32 registration fees unless the state which issued the base plate
 78 33 for the vehicle allows such refund.  If an owner subject to
 78 34 proportional registration leases the vehicle for which the
 78 35 refund is sought, the claim shall be filed in the names of
 79  1 both the lessee and the lessor and the refund payment made
 79  2 payable to both the lessor and the lessee.  The term "owner"
 79  3 for purposes of this section shall include a person in whom is
 79  4 vested right of possession or control of a vehicle which is
 79  5 subject to a lease, contract, or other legal arrangement
 79  6 vesting right of possession or control in addition to the term
 79  7 as defined in section 321.1, subsection 49.
 79  8    Sec. 98.  Section 321.127, subsection 1, Code 2007, is
 79  9 amended to read as follows:
 79 10    1.  The refund of the annual registration fee for vehicles
 79 11 shall be computed on the basis of the number of unexpired
 79 12 months remaining in the registration year from date of filing
 79 13 of the claim for refund with the county treasurer, computed to
 79 14 the nearest dollar.
 79 15    Sec. 99.  Section 321.132, Code 2007, is amended to read as
 79 16 follows:
 79 17    321.132  WHEN LIEN ATTACHES.
 79 18    The lien of the original annual registration fee attaches,
 79 19 at the time the fee is first payable, as provided by law, and
 79 20 the lien of all renewals of registration attach on the first
 79 21 day of each succeeding registration year.
 79 22    Sec. 100.  Section 321.134, Code Supplement 2007, is
 79 23 amended to read as follows:
 79 24    321.134  MONTHLY PENALTY.
 79 25    1.  On the first day of the second month following the
 79 26 beginning of each registration year a penalty of five percent
 79 27 of the annual registration fee shall be added to the annual
 79 28 registration fees not paid by that date and an additional
 79 29 penalty of five percent shall be added the first day of each
 79 30 succeeding month, until the fee is paid.  A penalty shall not
 79 31 be less than five dollars.  If the owner of a vehicle
 79 32 surrenders the registration plates for a vehicle prior to the
 79 33 plates becoming delinquent, to the county treasurer of the
 79 34 county where the vehicle is registered, or to the department
 79 35 if the vehicle is registered under chapter 326, the owner may
 80  1 register the vehicle any time thereafter upon payment of the
 80  2 annual registration fee for the registration year without
 80  3 penalty.  The penalty on vehicles registered under chapter 326
 80  4 shall accrue February 1 of each year.  To avoid a penalty or
 80  5 an additional penalty in the case of a delinquent
 80  6 registration, if the last calendar day of a month falls on
 80  7 Saturday, Sunday, or a holiday, the payment deadline is
 80  8 extended to include the first business day of the following
 80  9 month.  For payments made through a county treasurer's
 80 10 authorized website only, if the last day of the month falls on
 80 11 a Saturday, Sunday, or a holiday, the electronic payment must
 80 12 be initiated by midnight on the first business day of the next
 80 13 month.  All other electronic payments must be initiated by
 80 14 midnight on the last day of the month preceding the delinquent
 80 15 date.
 80 16    2.  The annual registration fee for trucks, truck tractors,
 80 17 and road tractors, as provided in sections 321.121 and
 80 18 321.122, may be payable in two equal semiannual installments
 80 19 if the annual registration fee exceeds the annual registration
 80 20 fee for a vehicle with a gross weight exceeding five tons.
 80 21 The penalties provided in subsection 1 shall be computed on
 80 22 the amount of the first installment only and on the first day
 80 23 of the seventh month of the registration period the same rate
 80 24 of penalty shall apply to the second installment, until the
 80 25 fee is paid.  Semiannual installments do not apply to
 80 26 commercial vehicles, as defined under section 326.2, subject
 80 27 to proportional registration, with a base state other than the
 80 28 state of Iowa, as defined in section 326.2, subsection 1.  The
 80 29 penalty on vehicles registered under chapter 326 accrues
 80 30 August 1 of each year except as provided in section 326.6.
 80 31 The department shall not allow the annual registration fee for
 80 32 a commercial vehicle registered under chapter 326 to be paid
 80 33 in two equal semiannual installments for five years after the
 80 34 registrant has paid the annual registration fee late for two
 80 35 consecutive years.
 81  1    3.  If a penalty applies to a an annual vehicle
 81  2 registration fee provided for in sections 321.121 and 321.122,
 81  3 the same penalty shall be assessed on the fees collected to
 81  4 increase the registered gross weight of the vehicle, if the
 81  5 increased gross weight is requested within forty=five days
 81  6 from the date the delinquent vehicle is registered for the
 81  7 current registration period.
 81  8    4.  Notwithstanding subsections 1 through 3, if a vehicle
 81  9 registration is delinquent for twenty=four months or more, a
 81 10 flat penalty and fee shall be assessed for the delinquent
 81 11 period in addition to the current annual registration fee.
 81 12 The flat penalty and fee shall be one hundred fifty percent of
 81 13 the current annual registration fee.
 81 14    5.  The department shall waive the penalties imposed by
 81 15 this section for an owner who is in the military service of
 81 16 the United States and who has been relocated as a result of
 81 17 being placed on active duty on or after September 11, 2001.
 81 18 The department shall adopt rules to implement this subsection,
 81 19 including, if necessary, procedures for refunding penalties
 81 20 collected prior to March 29, 2004.
 81 21    Sec. 101.  Section 321.135, Code 2007, is amended to read
 81 22 as follows:
 81 23    321.135  WHEN FEES DELINQUENT.
 81 24    Except as otherwise provided, delinquencies begin annual
 81 25 registration fees become delinquent and penalties accrue the
 81 26 first of the month following the purchase of a new vehicle,
 81 27 and thirty days following the date a vehicle is brought into
 81 28 the state.
 81 29    Sec. 102.  Section 321.151, Code 2007, is amended to read
 81 30 as follows:
 81 31    321.151  DUTY AND LIABILITY OF TREASURER.
 81 32    The county treasurer shall collect the registration fee,
 81 33 the fee for new registration, and penalties on each vehicle
 81 34 registered by the county treasurer and shall be responsible on
 81 35 the county treasurer's bond for such amount.  The county
 82  1 treasurer shall remit such amount to the treasurer of state as
 82  2 provided in this chapter.  Fees collected pursuant to
 82  3 participation in county issuance of driver's licenses under
 82  4 chapter 321M shall be governed by the provisions of that
 82  5 chapter.
 82  6    Sec. 103.  Section 321.152, subsection 1, Code 2007, is
 82  7 amended to read as follows:
 82  8    1.  Four percent of the total collection, excluding the
 82  9 amount of any fee for new registration, for each annual or
 82 10 semiannual vehicle registration and each duplicate
 82 11 registration card or plate issued.
 82 12    Sec. 104.  Section 321.152, Code 2007, is amended by adding
 82 13 the following new subsection:
 82 14    NEW SUBSECTION.  5.  One dollar from each fee for new
 82 15 registration collected pursuant to section 321.105A.
 82 16    Sec. 105.  Section 321.159, Code 2007, is amended to read
 82 17 as follows:
 82 18    321.159  EXCEPTIONAL CASES == ANNUAL REGISTRATION FEE.
 82 19    The department shall have the power to fix the annual
 82 20 registration fee on all makes and models of motor vehicles
 82 21 which are not now being furnished or upon which the statement
 82 22 from the factory cannot be obtained.
 82 23    For a current year model of a motor vehicle for which the
 82 24 manufacturer or importer of the motor vehicle has not provided
 82 25 the weight and list price, the department shall set the annual
 82 26 registration fee at ten dollars greater than the annual
 82 27 registration fee for the previous year model.  Once the
 82 28 manufacturer or importer provides the required information,
 82 29 the information shall be used to set the annual registration
 82 30 fee or the registration renewal fee for the succeeding
 82 31 registration or registration renewal time for the motor
 82 32 vehicle.
 82 33    Sec. 106.  Section 321.170, Code 2007, is amended to read
 82 34 as follows:
 82 35    321.170  PLATES FOR EXEMPT VEHICLES.
 83  1    The department shall furnish, on application, free of
 83  2 charge, distinguishing plates for motor vehicles exempted from
 83  3 a annual registration fee fees and shall keep a separate
 83  4 record thereof.
 83  5    Sec. 107.  Section 322G.4, subsection 2, unnumbered
 83  6 paragraph 2, Code 2007, is amended to read as follows:
 83  7    Refunds shall be made to the consumer and lienholder of
 83  8 record, if any, as their interests appear.  If applicable,
 83  9 refunds shall be made to the lessor and lessee as follows:
 83 10 the lessee shall receive the lessee's cost less a reasonable
 83 11 offset for use, and the lessor shall receive the lease price
 83 12 less the aggregate deposit and rental payments previously paid
 83 13 to the lessor for the leased vehicle.  If it is determined
 83 14 that the lessee is entitled to a refund pursuant to this
 83 15 chapter, the consumer's lease agreement with the lessor is
 83 16 terminated upon payment of the refund and no penalty for early
 83 17 termination shall be assessed.  The department of revenue
 83 18 shall refund to the manufacturer any use tax or fee for new
 83 19 registration which the manufacturer refunded to the consumer,
 83 20 lessee, or lessor under this section, if the manufacturer
 83 21 provides to the department of revenue a written request for a
 83 22 refund and evidence that the use tax or fee for new
 83 23 registration was paid when the vehicle was purchased and that
 83 24 the manufacturer refunded the use tax or fee for new
 83 25 registration to the consumer, lessee, or lessor.
 83 26    Sec. 108.  Section 322G.12, unnumbered paragraph 1, Code
 83 27 2007, is amended to read as follows:
 83 28    A manufacturer who accepts the return of a motor vehicle
 83 29 pursuant to a settlement, determination, or decision under
 83 30 this chapter shall notify the state department of
 83 31 transportation, report the vehicle identification number of
 83 32 that motor vehicle within ten days after the acceptance, and
 83 33 obtain a new certificate of title for the vehicle in the
 83 34 manufacturer's name pursuant to section 321.46.  In obtaining
 83 35 a new certificate of title, the manufacturer shall title the
 84  1 vehicle in the county of the transferor's residence and shall
 84  2 be exempt from the registration fee requirements of section
 84  3 321.46.  For purposes of chapter 423, a manufacturer's
 84  4 acceptance of the return of a motor vehicle, as described in
 84  5 this section, shall not be considered "use", as defined in
 84  6 section 423.1 and the fee for new registration under section
 84  7 321.105A.  The new certificate of title, and all subsequent
 84  8 registration receipts and certificates of title issued for the
 84  9 motor vehicle, shall contain a designation indicating that the
 84 10 motor vehicle was returned to the manufacturer pursuant to
 84 11 this chapter or a similar law of another state.  The state
 84 12 department of transportation shall determine the manner in
 84 13 which the designation is to be indicated on registration
 84 14 receipts and certificates of title and may determine that a
 84 15 "REBUILT" or "SALVAGE" designation supersedes the designation
 84 16 required by this paragraph and include the "REBUILT" or
 84 17 "SALVAGE" designation on the registration receipt and
 84 18 certificate of title in lieu of the designation required by
 84 19 this paragraph.
 84 20    Sec. 109.  Section 326.2, Code 2007, is amended by adding
 84 21 the following new subsection:
 84 22    NEW SUBSECTION.  11A.  "Registration fee" means the annual
 84 23 motor vehicle registration fee imposed pursuant to section
 84 24 321.105, unless otherwise specified.
 84 25    Sec. 110.  Section 327I.26, Code 2007, is amended to read
 84 26 as follows:
 84 27    327I.26  APPROPRIATION TO AUTHORITY.
 84 28    Notwithstanding section 423.43, and prior to the
 84 29 application of section 423.43, subsection 1, paragraph "b",
 84 30 there There shall be deposited into the general fund of the
 84 31 state and is appropriated to the authority from eighty percent
 84 32 of the revenues derived from the operation of section 423.26
 84 33 the statutory allocations fund created under section 321.145,
 84 34 subsection 2, the amounts certified by the authority under
 84 35 section 327I.25.  However, the total amount deposited into the
 85  1 general fund and appropriated to the Iowa railway finance
 85  2 authority under this section shall not exceed two million
 85  3 dollars annually.  Moneys appropriated to the Iowa railway
 85  4 finance authority under this section are appropriated only for
 85  5 the payment of principal and interest on obligations or the
 85  6 payment of leases guaranteed by the authority as provided
 85  7 under section 327I.25.
 85  8    Sec. 111.  Section 331.557, subsection 3, Code 2007, is
 85  9 amended to read as follows:
 85 10    3.  Collect the use tax on vehicles subject to registration
 85 11 only to a certificate of title and on manufactured housing as
 85 12 provided in sections section 423.14, and section 423.26, and
 85 13 423.27, subsection 1.
 85 14    Sec. 112.  Section 423.5, subsection 3, Code 2007, is
 85 15 amended to read as follows:
 85 16    3.  The use of leased vehicles, if the lease transaction
 85 17 does not require titling or registration of the vehicle, on
 85 18 the amount subject to tax as calculated pursuant to section
 85 19 423.27 423.26, subsection 2.
 85 20    Sec. 113.  Section 423.36, subsection 8, paragraph b,
 85 21 subparagraph (2), Code 2007, is amended to read as follows:
 85 22    (2)  Taxes imposed under sections section 423.26 and 423.27
 85 23 and chapter 423C.
 85 24    Sec. 114.  Section 423.57, Code Supplement 2007, is amended
 85 25 to read as follows:
 85 26    423.57  STATUTES APPLICABLE.
 85 27    The director shall administer this subchapter as it relates
 85 28 to the taxes imposed in this chapter in the same manner and
 85 29 subject to all the provisions of, and all of the powers,
 85 30 duties, authority, and restrictions contained in sections
 85 31 423.14, 423.15, 423.16, 423.17, 423.19, 423.20, 423.21,
 85 32 423.22, 423.23, 423.24, 423.25, 423.28, 423.29, 423.31,
 85 33 423.32, 423.33, 423.34, 423.35, 423.37, 423.38, 423.39,
 85 34 423.40, 423.41, and 423.42, section 423.43, subsection 3 1,
 85 35 and sections 423.45, 423.46, and 423.47.
 86  1    Sec. 115.  Section 423B.4, unnumbered paragraphs 2 and 3,
 86  2 Code 2007, are amended to read as follows:
 86  3    Payment of a local vehicle tax shall be evidenced by a
 86  4 notation on the state registration certificate.  The director
 86  5 of the department of transportation shall prescribe by rule
 86  6 the type of notation.  A local vehicle tax shall not be
 86  7 refunded even when annual state registration fees are
 86  8 refunded.
 86  9    Penalties for late payment which are comparable to the
 86 10 penalties for late payment of annual state registration fees
 86 11 shall be imposed by the ordinance imposing a local vehicle
 86 12 tax.  Willful violation of a local vehicle tax ordinance is a
 86 13 simple misdemeanor.
 86 14    Sec. 116.  Section 455D.11C, subsection 1, Code 2007, is
 86 15 amended to read as follows:
 86 16    1.  A waste tire management fund is created within the
 86 17 state treasury.  Moneys For the fiscal year beginning July 1,
 86 18 2002, through the fiscal year beginning July 1, 2006, moneys
 86 19 received from each five dollar surcharge on the issuance of a
 86 20 certificate of title shall be deposited as provided in section
 86 21 321.52A, subsection 2 Code 2007.  Notwithstanding section
 86 22 8.33, any unexpended balance in the fund at the end of each
 86 23 fiscal year shall be retained in the fund.  Notwithstanding
 86 24 section 12C.7, any interest or earnings on investments from
 86 25 moneys in the fund shall be credited to the fund.  Moneys from
 86 26 the fund that are expended by the department in closing or
 86 27 bringing into compliance a waste tire collection site pursuant
 86 28 to section 455D.11A and later recouped by the department shall
 86 29 be credited to the fund.
 86 30    Sec. 117.  Section 455G.3, subsection 1, Code 2007, is
 86 31 amended to read as follows:
 86 32    1.  The Iowa comprehensive petroleum underground storage
 86 33 tank fund is created as a separate fund in the state treasury,
 86 34 and any funds remaining in the fund at the end of each fiscal
 86 35 year shall not revert to the general fund but shall remain in
 87  1 the Iowa comprehensive petroleum underground storage tank
 87  2 fund.  Interest or other income earned by the fund shall be
 87  3 deposited in the fund.  The fund shall include moneys credited
 87  4 to the fund under this section, section 423.43 321.145,
 87  5 subsection 1 2, paragraph "a", and sections 455G.8, 455G.9,
 87  6 and 455G.11, Code 2003, and other funds which by law may be
 87  7 credited to the fund.  The moneys in the fund are appropriated
 87  8 to and for the purposes of the board as provided in this
 87  9 chapter.  Amounts in the fund shall not be subject to
 87 10 appropriation for any other purpose by the general assembly,
 87 11 but shall be used only for the purposes set forth in this
 87 12 chapter.  The treasurer of state shall act as custodian of the
 87 13 fund and disburse amounts contained in it as directed by the
 87 14 board including automatic disbursements of funds as received
 87 15 pursuant to the terms of bond indentures and documents and
 87 16 security provisions to trustees and custodians.  The treasurer
 87 17 of state is authorized to invest the funds deposited in the
 87 18 fund at the direction of the board and subject to any
 87 19 limitations contained in any applicable bond proceedings.  The
 87 20 income from such investment shall be credited to and deposited
 87 21 in the fund.  The fund shall be administered by the board
 87 22 which shall make expenditures from the fund consistent with
 87 23 the purposes of the programs set out in this chapter without
 87 24 further appropriation.  The fund may be divided into different
 87 25 accounts with different depositories as determined by the
 87 26 board and to fulfill the purposes of this chapter.
 87 27    Sec. 118.  Section 455G.6, subsection 4, Code 2007, is
 87 28 amended to read as follows:
 87 29    4.  Grant a mortgage, lien, pledge, assignment, or other
 87 30 encumbrance on one or more improvements, revenues, asset of
 87 31 right, accounts, or funds established or received in
 87 32 connection with the fund, including revenues derived from the
 87 33 use tax moneys credited under section 423.43 321.145,
 87 34 subsection 1 2, paragraph "a", and deposited in the fund or an
 87 35 account of the fund.
 88  1    Sec. 119.  Section 455G.8, subsection 2, Code 2007, is
 88  2 amended to read as follows:
 88  3    2.  USE TAX STATUTORY ALLOCATIONS FUND.  The revenues
 88  4 derived from the use tax imposed under chapter 423, subchapter
 88  5 III.  The proceeds of the use tax moneys credited from the
 88  6 statutory allocations fund under section 423.43 321.145,
 88  7 subsection 1 2, paragraph "a", shall be allocated, consistent
 88  8 with this chapter, among the fund's accounts, for debt service
 88  9 and other fund expenses, according to the fund budget,
 88 10 resolution, trust agreement, or other instrument prepared or
 88 11 entered into by the board or authority under direction of the
 88 12 board.
 88 13    Sec. 120.  Section 321.115, subsection 1, as enacted by
 88 14 2007 Iowa Acts, chapter 143, section 12, is amended to read as
 88 15 follows:
 88 16    1.  A motor vehicle twenty=five years old or older may be
 88 17 registered as an antique vehicle upon payment of.  The annual
 88 18 registration fee is the fee provided for in section 321.113,
 88 19 321.122, or 321.124.  The owner of a motor vehicle registered
 88 20 under this subsection may display authentic Iowa registration
 88 21 plates from the model year of the motor vehicle, furnished by
 88 22 the person and approved by the department, in lieu of the
 88 23 current and valid Iowa registration plates issued for the
 88 24 vehicle, provided that the current and valid Iowa registration
 88 25 plates and the registration card issued for the vehicle are
 88 26 simultaneously carried within the vehicle and are available
 88 27 for inspection to any peace officer upon the officer's
 88 28 request.
 88 29    Sec. 121.  Section 321.173, as amended by 2008 Iowa Acts,
 88 30 House File 2213, is amended by adding the following new
 88 31 subsection:
 88 32    NEW SUBSECTION.  3.  This section does not apply to the fee
 88 33 for new registration administered by the department of revenue
 88 34 pursuant to section 321.105A.
 88 35    Sec. 122.  2007 Iowa Acts, chapter 179, section 6, is
 89  1 amended to read as follows:
 89  2    SEC. 6.  Section 423.57, Code 2007, as amended by this Act,
 89  3 is amended to read as follows:
 89  4    423.57  STATUTES APPLICABLE.
 89  5    The director shall administer this subchapter as it relates
 89  6 to the taxes imposed in this chapter in the same manner and
 89  7 subject to all the provisions of, and all of the powers,
 89  8 duties, authority, and restrictions contained in sections
 89  9 423.14, 423.15, 423.16, 423.17, 423.19, 423.20, 423.21,
 89 10 423.22, 423.23, 423.24, 423.25, 423.28, 423.29, 423.31,
 89 11 423.32, 423.33, 423.34, 423.34A, 423.35, 423.37, 423.38,
 89 12 423.39, 423.40, 423.41, and 423.42, section 423.43, subsection
 89 13 3 1, and sections 423.45, 423.46, and 423.47.
 89 14    Sec. 123.  Section 423.44, Code 2007, is repealed.
 89 15    Sec. 124.  PRIOR USE TAX LIABILITY.  The enactment of this
 89 16 division of this Act does not affect a person's liability for
 89 17 any use tax, penalty, or interest owed by the person prior to
 89 18 the effective date of this division of this Act.
 89 19    Sec. 125.  EFFECTIVE DATE.  The following sections of this
 89 20 division of this Act take effect January 1, 2009:
 89 21    1.  The section amending section 321.115, subsection 1, as
 89 22 enacted by 2007 Iowa Acts, chapter 143, section 12.
 89 23    2.  The section amending 2007 Iowa Acts, chapter 179.
 89 24                           EXPLANATION
 89 25    This bill increases registration fees charged for certain
 89 26 motor vehicles, fees charged for certificates of title, and
 89 27 trailer registration fees and appropriates the additional
 89 28 revenues to the transportation investment moves the economy in
 89 29 the twenty=first century (TIME=21) fund.  The bill also
 89 30 replaces the use tax on vehicles with a registration fee
 89 31 imposed at the time of application for registration and a
 89 32 certificate of title.  The bill contains additional related
 89 33 provisions.
 89 34    DIVISION I == MOTOR VEHICLES.  The bill requires the
 89 35 treasurer of state, prior to distributing moneys under the
 90  1 road use tax fund formula, to credit to the TIME=21 fund the
 90  2 amount collected from annual motor vehicle registration fees
 90  3 that is in excess of $392 million annually.  The provision
 90  4 crediting revenues to the TIME=21 fund is repealed, and the
 90  5 revenues will revert to the road use tax fund, on June 30,
 90  6 2028.  Pursuant to current law, the TIME=21 fund is scheduled
 90  7 to be dissolved on that date.
 90  8    The bill requires that most 2010 and newer model year motor
 90  9 trucks with an unladen weight of 10,000 pounds or less be
 90 10 registered for a fee based on the weight and value of the
 90 11 vehicle.  Currently, such trucks are registered for flat fees
 90 12 based on combined gross weight.  Under the bill,
 90 13 business=trade trucks will continue to be registered for flat
 90 14 fees.  The bill defines "business=trade truck" as a motor
 90 15 truck with an unladen weight of 10,000 pounds or less which is
 90 16 owned by a corporation, limited liability company, or
 90 17 partnership or by a person who files a schedule C or schedule
 90 18 F form for federal tax purposes and which is eligible for
 90 19 depreciation for federal tax purposes.  In the case of a
 90 20 leased truck, the lessee must be a corporation, limited
 90 21 liability company, or partnership or a person who files a
 90 22 schedule C or schedule F form for tax purposes and the truck
 90 23 must be used primarily for business or farm operations.  A
 90 24 person who registers a vehicle as a business=trade truck shall
 90 25 be required to provide proof or affirm that the vehicle meets
 90 26 the qualifications for such registration.  Special
 90 27 registration plates shall be issued that distinguish
 90 28 business=trade trucks from trucks that are subject to regular
 90 29 registration fees based on weight and value.  A person who
 90 30 registers a vehicle as a business=trade truck that is not
 90 31 qualified for the registration shall be required to pay the
 90 32 difference between the registration fees paid and the
 90 33 registration fees owed for each year of violation.  In
 90 34 addition, if the person knowingly registered the vehicle
 90 35 improperly as a business=trade truck, a penalty is imposed in
 91  1 the amount of $750 for each year of improper registration, up
 91  2 to a maximum of $2,250.  County treasurers may retain 25
 91  3 percent of the moneys collected from such penalties, with the
 91  4 remainder accruing to the road use tax fund.  Penalties
 91  5 provided under existing law may also apply.  Currently, a
 91  6 person who knowingly falsifies a registration application is
 91  7 guilty of a fraudulent practice.  The penalties for fraudulent
 91  8 practice are determined by the amount of money involved,
 91  9 ranging from a simple misdemeanor for amounts of $200 or less
 91 10 to a class "C" felony for amounts in excess of $10,000.
 91 11    Passenger vehicles are registered for a fee that is based
 91 12 on the weight and value of the vehicle:  1 percent of the
 91 13 vehicle's value plus 40 cents for each 100 pounds of weight of
 91 14 the vehicle.  Currently, the amount of the fee that is based
 91 15 on value is reduced to 75 percent of the rate as fixed when
 91 16 the vehicle was new if the vehicle is more than five model
 91 17 years old and 50 percent if the vehicle is more than six model
 91 18 years old.  When the vehicle is nine model years old or older,
 91 19 the registration fee drops to $35.  In addition, certain older
 91 20 vehicles that fall under prior fee schedules pay more modest
 91 21 fees of $16, $23, or $27.  The bill provides an expanded
 91 22 schedule for fee reductions as follows:  When the vehicle is
 91 23 more than seven model years old, the amount of the fee based
 91 24 on value is 75 percent of the rate as fixed when the vehicle
 91 25 was new; when the vehicle is more than nine model years old,
 91 26 that amount is 50 percent; when the vehicle is 12 model years
 91 27 old or older, the fee drops to $50.  However, under the bill,
 91 28 if the registration fee under the new rate schedule is higher
 91 29 than the owner paid for the same vehicle in the previous
 91 30 registration year, the fee will be the fee from the previous
 91 31 year.  The owner of a vehicle currently paying a fee of less
 91 32 than $50 will continue to pay that lower fee for as long as
 91 33 they own the vehicle.  The fee for a vehicle registered by the
 91 34 owner as an antique vehicle prior to January 1, 2009, will be
 91 35 $23 for model years 1970=1983 and $16 for model years 1969 and
 92  1 older.
 92  2    Fees for special trucks for farm use, which are registered
 92  3 for a gross weight of six tons through 32 tons, are increased
 92  4 under the bill.  For a gross weight of six tons, the fee is
 92  5 increased from $80 to $100; for a gross weight of seven tons,
 92  6 from $100 to $125; and for a gross weight of eight tons, from
 92  7 $120 to $155.  Fees for special trucks with a gross weight of
 92  8 nine through 18 tons are established as follows:  nine tons,
 92  9 $170; 10 tons, $190; 11 tons, $205; 12 tons, $225; 13 tons,
 92 10 $245; 14 tons, $265; 15 tons, $280; 16 tons, $295; 17 tons,
 92 11 $305; and 18 tons, $315.  The fees apply for vehicles
 92 12 registered by a new owner for a 2009 or subsequent
 92 13 registration year.  Current owners will continue to pay
 92 14 current fees for as long as they own their vehicles.
 92 15    The bill also revises the flat fee schedule for motor
 92 16 trucks registered for a combined gross weight, including
 92 17 business=trade trucks.  For a combined gross weight of three
 92 18 tons or less, the fee is increased from $65 to $150.  When the
 92 19 motor vehicle is more than seven model years old, the fee is
 92 20 $120; more than nine model years old, $100; and 12 model years
 92 21 old or older, $50.  Registration fees for a combined gross
 92 22 weight exceeding three tons and up to nine tons are increased
 92 23 as follows:  For more than three tons but not more than four
 92 24 tons, the fee is increased from $80 to $165; for more than
 92 25 four tons but not more than five tons, from $90 to $180; for
 92 26 more than five tons but not more than six tons, from $105 to
 92 27 $195; for more than six tons but not more than seven tons,
 92 28 from $130 to $215; for more than seven tons but not more than
 92 29 eight tons, from $165 to $220; and for more than eight tons
 92 30 but not more than nine tons, from $200 to $225.  The new fees
 92 31 apply for vehicles registered by a new owner for a 2009 or
 92 32 subsequent registration year.  Current owners will continue to
 92 33 pay current fees for as long as they own the vehicle.
 92 34    This division of the bill takes effect January 1, 2009, and
 92 35 applies to vehicles registered for registration years
 93  1 beginning in 2009 and thereafter.
 93  2    DIVISION II == TITLE FEES.  The bill increases the fee
 93  3 charged for issuance of a certificate of title for a motor
 93  4 vehicle or trailer from $10 to $20.  The fees for a salvage
 93  5 certificate of title and for a motor vehicle returned to a
 93  6 manufacturer are increased from $2 to $10.
 93  7    The bill requires the treasurer of state, prior to
 93  8 distributing moneys under the road use tax fund formula, to
 93  9 credit monthly to the TIME=21 fund an amount equal to the
 93 10 revenues attributable to the increase in title fees under the
 93 11 bill.  The provision crediting revenues to the TIME=21 fund is
 93 12 repealed and new revenues will revert to the road use tax fund
 93 13 on June 30, 2028.  Pursuant to current law, the TIME=21 fund
 93 14 is scheduled to be dissolved on that date.
 93 15    This division of the bill takes effect January 1, 2009.
 93 16    DIVISION III == TRAILER REGISTRATION FEES.  The bill
 93 17 increases the fee charged for registration of trailers.
 93 18 Currently, most trailers other than farm trailers and trailers
 93 19 registered for the combined gross weight of the vehicle are
 93 20 subject to a $10 registration fee.  The bill increases the fee
 93 21 to $20 for such trailers with an empty weight of 2,000 pounds
 93 22 or less, and $30 for such trailers with an empty weight in
 93 23 excess of 2,000 pounds.  The registration fee for travel
 93 24 trailers and fifth=wheel travel trailers, which is based on
 93 25 square footage, is increased from 20 cents to 30 cents per
 93 26 square foot.
 93 27    The bill requires the treasurer of state, prior to
 93 28 distributing moneys under the road use tax fund formula, to
 93 29 credit monthly to the TIME=21 fund an amount equal to the
 93 30 revenues attributable to the increase in trailer registration
 93 31 fees under the bill.  The provision crediting revenues to the
 93 32 TIME=21 fund is repealed and new revenues will revert to the
 93 33 road use tax fund on June 30, 2028.  Pursuant to current law,
 93 34 the TIME=21 fund is scheduled to be dissolved on that date.
 93 35    This division of the bill takes effect January 1, 2009, and
 94  1 applies to trailers registered for registration years
 94  2 beginning in 2009 and thereafter.
 94  3    DIVISION IV == TIME=21 FUNDING ANALYSIS.  The bill requires
 94  4 the department of transportation to analyze additional
 94  5 revenues necessary to provide at least $200 million annually
 94  6 to the TIME=21 fund by FY 2011=2012, including an analysis of
 94  7 sources of revenue to create a balance of taxes and fees paid
 94  8 by Iowa drivers and out=of=state drivers.  A report of the
 94  9 analysis is required to be submitted to the governor and the
 94 10 general assembly on or before December 31, 2008.
 94 11    The bill requires the department of transportation, in
 94 12 cooperation with the office of energy independence and the
 94 13 department of natural resources, to review current funding for
 94 14 public transit and assess the sufficiency of that funding to
 94 15 meet future needs.  A report is required to be submitted to
 94 16 the governor and the general assembly on or before December 1,
 94 17 2009.
 94 18    DIVISION V == MOTORCYCLE OPERATOR'S LICENSE FEE.  The bill
 94 19 increases the additional fee required for a license valid for
 94 20 operation of a motorcycle from $1 to $2.  Pursuant to current
 94 21 law and as provided in the bill, revenues from those fees are
 94 22 credited to the motorcycle rider education fund.
 94 23    DIVISION VI == USE TAX ON MOTOR VEHICLES REPEALED == FEE
 94 24 FOR NEW REGISTRATION IMPOSED.  This division of the bill
 94 25 eliminates the imposition of the use tax on motor vehicles
 94 26 subject to registration and the use tax on leased motor
 94 27 vehicles, provides alternate sources of revenue for purposes
 94 28 currently funded from revenues derived from the motor vehicle
 94 29 use tax, and establishes a one=time motor vehicle registration
 94 30 fee called the "fee for new registration".
 94 31    PART 1 == ROAD USE TAX FUND.  Currently, there are several
 94 32 purposes for which motor vehicle use taxes are allocated which
 94 33 are not eligible under Iowa's constitution for funding from
 94 34 motor vehicle registration fees.  The bill directs that, prior
 94 35 to allocation from the road use tax fund, an amount equal to
 95  1 10 percent of the revenue collected from the fee for new
 95  2 registration on vehicles other than leased motor vehicles is
 95  3 to be credited monthly to the primary road fund to be used for
 95  4 the commercial and industrial highway network.  This continues
 95  5 current funding levels for that purpose.
 95  6    The remaining purposes currently funded from vehicle use
 95  7 taxes will continue to be funded under the bill from revenue
 95  8 sources that accrue to the road use tax fund but are not
 95  9 constitutionally protected.  Those sources include trailer
 95 10 registration fees, fees from driver's licenses and
 95 11 nonoperator's identification cards, title fees and the
 95 12 certificate of title surcharge, revenues from the automobile
 95 13 rental excise tax, and revenues from the use tax on mobile
 95 14 homes and manufactured homes and on leased vehicles not
 95 15 subject to registration and title.  The bill creates a
 95 16 statutory allocations fund under the control of the department
 95 17 of transportation for deposit and distribution of those
 95 18 revenues.  Pursuant to current law, revenues from the
 95 19 environmental protection charge on petroleum diminution are
 95 20 deposited into the road use tax fund, and $4.25 million is
 95 21 credited quarterly from vehicle use tax moneys to the Iowa
 95 22 comprehensive petroleum underground storage tank fund.  The
 95 23 bill directs the treasurer of state to credit that same amount
 95 24 to the fund from the statutory allocations fund.  After the
 95 25 obligation to the Iowa petroleum underground storage tank fund
 95 26 is met, moneys shall be credited in order of priority as
 95 27 follows:
 95 28    1.  An amount equal to 4 percent of the revenue collected
 95 29 from the fee for new registration on vehicles other than
 95 30 leased vehicles is to be credited for purposes of public
 95 31 transit assistance.
 95 32    2.  An amount equal to $1 per year of license validity for
 95 33 each issued or renewed driver's license valid for the
 95 34 operation of a motorcycle shall be credited to the motorcycle
 95 35 rider education fund.  Under the bill, the amount credited
 96  1 doubles to $2 in conjunction with an increase in the fee in
 96  2 another division of the bill.
 96  3    3.  Amounts required to be transferred from the sale of
 96  4 special motor vehicle registration plates are to be credited
 96  5 for the various purposes associated with those plates.
 96  6    4.  Amounts of up to $2 million per year may be credited to
 96  7 the railway finance authority for payments on obligations
 96  8 certified by the authority and lease payments guaranteed by
 96  9 the authority.
 96 10    5.  Amounts required for certain projects on bridges over
 96 11 rivers bordering the state, which are not eligible for funding
 96 12 from the road use tax fund, may be credited to the primary
 96 13 road fund at the direction of the department of
 96 14 transportation.
 96 15    PART 2 == FEE FOR NEW VEHICLE REGISTRATION.  The bill
 96 16 establishes a new vehicle registration fee, referred to as the
 96 17 "fee for new registration", which amounts to 5 percent of the
 96 18 purchase price of a vehicle subject to registration, or 5
 96 19 percent of the leased price for each vehicle subject to
 96 20 registration with a gross vehicle weight rating of less than
 96 21 16,000 pounds, excluding motorcycles and motorized bicycles,
 96 22 which is leased for 12 months or more.  The imposition of the
 96 23 fee for new registration is subject to the same exemptions
 96 24 currently applicable to the use tax on vehicles.  The bill
 96 25 provides that the computation of a vehicle's purchase price
 96 26 for purposes of the fee for new registration mirrors the
 96 27 computation of "sales price" under current use tax provisions.
 96 28 The director of revenue, in consultation with the department
 96 29 of transportation, shall administer and enforce the fee for
 96 30 new registration as nearly as possible in conjunction with the
 96 31 administration and enforcement of the use tax law.
 96 32    The fee for new registration is payable to the county
 96 33 treasurer at the time application is made for a new
 96 34 registration and certificate of title for a vehicle.  As is
 96 35 currently the case with the vehicle use tax, the county
 97  1 treasurer shall retain $1 from the collection of a fee for new
 97  2 registration, to be deposited in the county general fund.  The
 97  3 bill provides a mechanism for collection of the fee by
 97  4 licensed vehicle dealers at the time a vehicle is purchased
 97  5 and provisions for obtaining a refund of a fee.  The bill
 97  6 provides that a person who makes a false statement regarding
 97  7 the purchase price of a vehicle commits a fraudulent practice
 97  8 and is subject to the same penalties that applied for purposes
 97  9 of the use tax on vehicles.
 97 10    PART 3 == MOTOR VEHICLE USE TAX == REPEAL.  The bill
 97 11 repeals the use tax on vehicles subject to registration and
 97 12 the motor vehicle lease tax, except for the tax on the use of
 97 13 leased vehicles if the lease transaction does not require
 97 14 titling and registration of the vehicle.  The use tax on
 97 15 vehicles subject only to a certificate of title, which applies
 97 16 to mobile homes, and on manufactured homes is retained under
 97 17 the bill.  The resulting revenue may be used to supplement
 97 18 funding sources for purposes currently funded by vehicle use
 97 19 taxes, with the remainder to be deposited into the road use
 97 20 tax fund.
 97 21    PART 4 == CONFORMING AMENDMENTS.  The bill contains
 97 22 conforming amendments to the Code relating to the repeal of
 97 23 the use tax on vehicles subject to registration and the
 97 24 establishment of the fee for new registration.
 97 25 LSB 5811HZ 82
 97 26 dea/nh/24