House Study Bill 714 



                                       HOUSE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            TRANSPORTATION BILL BY
                                            CHAIRPERSON HUSER)


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

                                      A BILL FOR

  1 An Act relating to the crediting of fees collected by the
  2    department of transportation, repealing the use tax on
  3    vehicles subject to registration and the use tax on certain
  4    leased motor vehicles, and establishing a fee for new
  5    registration of vehicles, making penalties applicable, and
  6    providing an effective date.
  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  8 TLSB 5396YC 82
  9 dea/nh/14

PAG LIN



  1  1                           DIVISION I
  1  2                        ROAD USE TAX FUND
  1  3    Section 1.  Section 312.1, Code 2007, is amended to read as
  1  4 follows:
  1  5    312.1  FUND CREATED.
  1  6    1.  There is hereby created, in the state treasury, a road
  1  7 use tax fund.  Said The road use tax fund shall embrace and
  1  8 include all of the following:
  1  9    1.  a.  All the net proceeds of the registration of motor
  1 10 vehicles under chapter 321.
  1 11    2.  b.  All the net proceeds of the motor fuel tax or
  1 12 license fees under chapter 452A.
  1 13    3.  c.  Revenue derived from the excise tax imposed upon
  1 14 the rental of automobiles, under chapter 423C, as to the
  1 15 extent provided by section 423C.5.
  1 16    4.  To the extent provided in section 423.43, subsection 1,
  1 17 paragraph "b", from revenue derived from the use tax, under
  1 18 chapter 423 on motor vehicles, trailers, and motor vehicle
  1 19 accessories and equipment.
  1 20    5.  d.  Any other funds which may by law be credited to the
  1 21 road use tax fund.
  1 22    2.  Notwithstanding section 12C.7, subsection 2, interest
  1 23 or earnings on investments or time deposits of the moneys in
  1 24 the road use tax fund and the funds to which moneys from the
  1 25 road use tax fund are credited shall be credited to the road
  1 26 use tax fund.
  1 27    Sec. 2.  Section 312.2, subsections 14 and 16, Code
  1 28 Supplement 2007, are amended by striking the subsections.
  1 29    Sec. 3.  Section 312.2, Code Supplement 2007, is amended by
  1 30 adding the following new subsection:
  1 31    NEW SUBSECTION.  19.  The treasurer of state, before making
  1 32 the allotments provided for in this section, shall credit
  1 33 monthly from the road use tax fund to the state department of
  1 34 transportation an amount equal to twenty percent of the
  1 35 revenues collected from the operation of section 321.105A, to
  2  1 be credited and deposited as follows:  one=half to the road
  2  2 use tax fund and one=half to the primary road fund to be used
  2  3 for the commercial and industrial highway network.
  2  4    Sec. 4.  Section 321.52A, Code 2007, is amended to read as
  2  5 follows:
  2  6    321.52A  CERTIFICATE OF TITLE SURCHARGE == ALLOCATION OF
  2  7 MONEYS.
  2  8    1.  In addition to the fee required for the issuance of a
  2  9 certificate of title under section 321.20, 321.20A, 321.23,
  2 10 321.42, 321.46, 321.47, 321.48, 321.50, or 321.52, a surcharge
  2 11 of five dollars shall be required.  Of each surcharge
  2 12 collected under those sections, the county treasurer shall
  2 13 remit five dollars to the office of treasurer of state for
  2 14 deposit as set forth in section 321.145, subsection 2.
  2 15    2.  For the fiscal year beginning July 1, 2002, through the
  2 16 fiscal year beginning July 1, 2006, the treasurer of state
  2 17 shall deposit twenty percent of the moneys received under
  2 18 subsection 1 in the waste tire management fund and deposit the
  2 19 remainder in the road use tax fund.  For the fiscal year
  2 20 beginning July 1, 2007, and each subsequent fiscal year, the
  2 21 treasurer of state shall deposit the entire amount of moneys
  2 22 received under subsection 1 in the road use tax fund.
  2 23    Sec. 5.  Section 321.145, Code 2007, is amended to read as
  2 24 follows:
  2 25    321.145  DISPOSITION OF MONEYS AND FEES.
  2 26    1.  Except for fines, forfeitures, court costs, and the
  2 27 collection fees retained by the county treasurer pursuant to
  2 28 section 321.152, and except as provided in subsections 2 and
  2 29 3, moneys and motor vehicle license registration fees
  2 30 collected under this chapter shall be credited by the
  2 31 treasurer of state to the road use tax fund.
  2 32    2.  a.  Revenues derived from fees charged for driver's
  2 33 licenses and nonoperator's identification cards, fees charged
  2 34 for the issuance of a certificate of title, and the
  2 35 certificate of title surcharge collected pursuant to section
  3  1 321.52A, shall be credited as follows:
  3  2    (1)  An amount equal to one=twentieth of eighty percent of
  3  3 the revenue from the operation of section 321.105A shall be
  3  4 credited to the department, to be used for purposes of public
  3  5 transit assistance under chapter 324A.
  3  6    (2)  An amount equal to one dollar per year of license
  3  7 validity for each issued or renewed driver's license which is
  3  8 valid for the operation of a motorcycle shall be credited to
  3  9 the motorcycle education fund established under section
  3 10 321.180B.
  3 11    (3)  The amounts required to be transferred pursuant to
  3 12 section 321.34 from revenues available under this subsection
  3 13 shall be transferred and credited as provided in section
  3 14 321.34, subsections 7, 10, 10A, 11, 11A, 11B, 13, 16, 17, 18,
  3 15 19, 20, 20A, 20B, 21, 22, 23, and 24 for the various purposes
  3 16 specified in those subsections.
  3 17    b.  Any such revenues remaining shall be credited to the
  3 18 road use tax fund.
  3 19    3.  The department may direct the treasurer of state to
  3 20 credit to the primary road fund any amount of revenues derived
  3 21 from trailer registration fees collected pursuant to sections
  3 22 321.105 and 321.105A to the extent necessary to reimburse that
  3 23 fund for the expenditures not otherwise eligible to be made
  3 24 from the primary road fund, which are made for repairing,
  3 25 improving, and maintaining bridges over the rivers bordering
  3 26 the state.  Expenditures for those portions of bridges within
  3 27 adjacent states may be included when they are made pursuant to
  3 28 an agreement entered into under section 313.63, 313A.34, or
  3 29 314.10.
  3 30    Sec. 6.  Section 423C.5, Code 2007, is amended to read as
  3 31 follows:
  3 32    423C.5  DEPOSIT OF REVENUE.
  3 33    The department, at the direction of the department of
  3 34 transportation, shall credit the revenue arising from the
  3 35 operation of this chapter shall be credited, as necessary to
  4  1 supplement the funds available for the purposes specified in
  4  2 section 321.145, subsection 2, paragraph "a".  Any such
  4  3 revenue remaining shall be credited to the road use tax fund.
  4  4    Sec. 7.  Section 424.7, subsection 4, Code 2007, is amended
  4  5 to read as follows:
  4  6    4.  Upon receipt of a payment pursuant to this chapter, the
  4  7 department shall deposit the moneys as follows:
  4  8    a.  Up to a maximum of four million two hundred fifty
  4  9 thousand dollars per quarter shall be deposited into and
  4 10 credited to the Iowa comprehensive petroleum underground
  4 11 storage tank fund created in section 455G.3, and the moneys so
  4 12 deposited are a continuing appropriation for expenditure under
  4 13 chapter 455G, and moneys so appropriated shall not be used for
  4 14 other purposes.
  4 15    b.  Any such moneys remaining shall be deposited into the
  4 16 road use tax fund created in section 312.1.
  4 17                           DIVISION II
  4 18                FEE FOR NEW VEHICLE REGISTRATION
  4 19    Sec. 8.  Section 321.1, Code 2007, is amended by adding the
  4 20 following new subsection:
  4 21    NEW SUBSECTION.  59A.  "Registration fees", unless
  4 22 otherwise specified, means both the annual vehicle
  4 23 registration fee and the fee for new registration, to the
  4 24 extent applicable, for purposes of administering the
  4 25 provisions of this chapter concerning vehicle registration
  4 26 fees.
  4 27    Sec. 9.  Section 321.2, Code 2007, is amended to read as
  4 28 follows:
  4 29    321.2  DEPARTMENT.
  4 30    1.  The Except as otherwise provided by law, the state
  4 31 department of transportation shall administer and enforce the
  4 32 provisions of this chapter.
  4 33    2.  The division of state patrol of the department of
  4 34 public safety shall enforce the provisions of this chapter
  4 35 relating to traffic on the public highways of the state,
  5  1 including those relating to the safe and legal operation of
  5  2 passenger cars, motorcycles, motor trucks and buses, and to
  5  3 see that proper safety rules are observed.
  5  4    3.  The state department of transportation and the
  5  5 department of public safety shall cooperate to insure the
  5  6 proper and adequate enforcement of the provisions of this
  5  7 chapter.
  5  8    4.  The director of revenue shall administer and enforce
  5  9 the collection of the fee for new registration as provided in
  5 10 section 321.105A.
  5 11    Sec. 10.  NEW SECTION.  321.105A  FEE FOR NEW REGISTRATION.
  5 12    1.  DEFINITIONS.  The following terms, when used in this
  5 13 section, shall have the following meanings, except in those
  5 14 instances where the context clearly indicates otherwise:
  5 15    a.  "Department" means the department of revenue.
  5 16    b.  "Director" means the director of revenue.
  5 17    c.  "Owner" means as defined in section 321.1.  For
  5 18 purposes of the fee for new registration imposed on leased
  5 19 vehicles under subsection 3, "owner" means the "lessor".
  5 20    d.  "Purchase" means any transfer, exchange, or barter,
  5 21 conditional or otherwise, in any manner or by any means
  5 22 whatsoever, for consideration.
  5 23    2.  In addition to the annual registration fee required
  5 24 under section 321.105, a "fee for new registration" is imposed
  5 25 in the amount of five percent of the purchase price for each
  5 26 vehicle subject to registration.  The fee for new registration
  5 27 shall be paid by the owner of the vehicle to the county
  5 28 treasurer at the time application is made for original
  5 29 registration for a vehicle.  A new registration receipt shall
  5 30 not be issued until the fee has been paid.  The county
  5 31 treasurer or the department of transportation shall require
  5 32 every applicant for a new registration receipt for a vehicle
  5 33 subject to registration to supply information as the county
  5 34 treasurer or the director deems necessary as to the time of
  5 35 purchase, the purchase price, and other information relative
  6  1 to the purchase of the vehicle.  On or before the tenth day of
  6  2 each month, the county treasurer or the department of
  6  3 transportation shall remit to the department of revenue the
  6  4 amount of the fees for new registration collected during the
  6  5 preceding month.
  6  6    a.  For purposes of this subsection, "purchase price"
  6  7 applies to the measure subject to the fee for new
  6  8 registration.  "Purchase price" shall be determined in the
  6  9 same manner as "sales price" is determined for purposes of
  6 10 computing the tax imposed upon the sales price of tangible
  6 11 personal property under chapter 423, pursuant to the
  6 12 definition in section 423.1, subsection 47, subject to the
  6 13 following exemptions:
  6 14    (1)  Exempted from the purchase price of any vehicle
  6 15 subject to registration is the amount of any cash rebate which
  6 16 is provided by a motor vehicle manufacturer to the purchaser
  6 17 of the vehicle subject to registration so long as the rebate
  6 18 is applied to the purchase price of the vehicle.
  6 19    (2)  (a)  In transactions, except those subject to
  6 20 subparagraph subdivision (b), in which a vehicle subject to
  6 21 registration is traded toward the purchase price of another
  6 22 vehicle subject to registration, the purchase price is only
  6 23 that portion of the purchase price which is valued in money,
  6 24 whether received in money or not, if the following conditions
  6 25 are met:
  6 26    (i)  The vehicle traded to the retailer is the type of
  6 27 vehicle normally sold in the regular course of the retailer's
  6 28 business.
  6 29    (ii)  The vehicle traded to the retailer is intended by the
  6 30 retailer to be ultimately sold at retail or is intended to be
  6 31 used by the retailer or another in the remanufacturing of a
  6 32 like vehicle.
  6 33    (b)  In a transaction between persons, neither of which is
  6 34 a retailer of vehicles subject to registration, in which a
  6 35 vehicle subject to registration is traded toward the purchase
  7  1 price of another vehicle subject to registration, the amount
  7  2 of the trade=in value allowed on the vehicle subject to
  7  3 registration traded is exempted from the purchase price.
  7  4    (c)  In order for the trade=in value to be excluded from
  7  5 the purchase price, the name or names on the title and
  7  6 registration of the vehicle being purchased must be the same
  7  7 name or names on the title and registration of the vehicle
  7  8 being traded.  The following trades qualify under this
  7  9 subparagraph subdivision (c):
  7 10    (i)  A trade involving spouses, if the traded vehicle and
  7 11 the acquired vehicle are titled in the name of one or both of
  7 12 the spouses, with no outside party named on the title.
  7 13    (ii)  A trade involving a grandparent, parent, or child,
  7 14 including adopted and step relationships, if the name of one
  7 15 of the family members from the title of the traded vehicle is
  7 16 also on the title of the newly acquired vehicle.
  7 17    (iii)  A trade involving a business, if one of the owners
  7 18 listed on the title of the traded vehicle is a business, and
  7 19 the names on the title are separated by "or".
  7 20    (iv)  A trade in which the vehicle being purchased is
  7 21 titled in the name of an individual other than the owner of
  7 22 the traded vehicle due to the cosigning requirements of a
  7 23 financial institution.
  7 24    (3)  Exempted from the purchase price of a replacement
  7 25 motor vehicle owned by a motor vehicle dealer licensed under
  7 26 chapter 322 which is being registered by that dealer and is
  7 27 not otherwise exempt from the fee for new registration is the
  7 28 fair market value of a replaced motor vehicle if all of the
  7 29 following conditions are met:
  7 30    (a)  The motor vehicle being registered is being placed in
  7 31 service as a replacement motor vehicle for a motor vehicle
  7 32 registered by the motor vehicle dealer.
  7 33    (b)  The motor vehicle being registered is taken from the
  7 34 motor vehicle dealer's inventory.
  7 35    (c)  The fee for new registration on the motor vehicle
  8  1 being replaced was paid by the motor vehicle dealer when that
  8  2 motor vehicle was registered.
  8  3    (d)  The replaced motor vehicle is returned to the motor
  8  4 vehicle dealer's inventory for sale.
  8  5    (e)  The application for registration and title of the
  8  6 motor vehicle being registered is filed with the county
  8  7 treasurer within two weeks of the date the replaced motor
  8  8 vehicle is returned to the motor vehicle dealer's inventory.
  8  9    (f)  The motor vehicle being registered is placed in the
  8 10 same or substantially similar service as the replaced motor
  8 11 vehicle.
  8 12    b.  For purposes of this subsection, the fee for new
  8 13 registration on a vehicle registered in this state by the
  8 14 manufacturer of that vehicle from a manufacturer's statement
  8 15 of origin is calculated on the base value of fifty percent of
  8 16 the retail list price of the vehicle.
  8 17    c.  The following are exempt from the fee for new
  8 18 registration imposed under this subsection, as long as a valid
  8 19 affidavit is filed with the county treasurer at the time of
  8 20 application for registration:
  8 21    (1)  Entities listed in section 423.3, subsections 17, 18,
  8 22 19, 20, 21, 22, 26, 27, 28, 31, and 79, to the extent that
  8 23 those entities are exempt from the tax imposed on the sale of
  8 24 tangible personal property, consisting of goods, wares, or
  8 25 merchandise, sold at retail in the state to consumers or
  8 26 users.
  8 27    (2)  Vehicles as defined in section 321.1, subsections 41,
  8 28 64A, 71, 85, and 88, except such vehicles subject to
  8 29 registration which are designed primarily for carrying
  8 30 persons, when purchased for lease and actually leased to a
  8 31 lessee for use outside the state of Iowa and the subsequent
  8 32 sole use in Iowa is in interstate commerce or interstate
  8 33 transportation.
  8 34    (3)  (a)  Vehicles subject to registration which are
  8 35 transferred from a business or individual conducting a
  9  1 business within this state as a sole proprietorship,
  9  2 partnership, or limited liability company to a corporation
  9  3 formed by the sole proprietorship, partnership, or limited
  9  4 liability company for the purpose of continuing the business
  9  5 when all of the stock of the corporation so formed is owned by
  9  6 the sole proprietor and the sole proprietor's spouse, by all
  9  7 the partners in the case of a partnership, or by all the
  9  8 members in the case of a limited liability company.  This
  9  9 exemption is equally available where the vehicles subject to
  9 10 registration are transferred from a corporation to a sole
  9 11 proprietorship, partnership, or limited liability company
  9 12 formed by that corporation for the purpose of continuing the
  9 13 business when all of the incidents of ownership are owned by
  9 14 the same person or persons who were stockholders of the
  9 15 corporation.
  9 16    (b)  This exemption also applies where the vehicles subject
  9 17 to registration are transferred from a corporation as part of
  9 18 the liquidation of the corporation to its stockholders if
  9 19 within three months of such transfer the stockholders
  9 20 retransfer those vehicles subject to registration to a sole
  9 21 proprietorship, partnership, or limited liability company for
  9 22 the purpose of continuing the business of the corporation when
  9 23 all of the incidents of ownership are owned by the same person
  9 24 or persons who were stockholders of the corporation.
  9 25    (c)  This exemption applies to corporations that have been
  9 26 in existence for not longer than twenty=four months.
  9 27    (4)  Vehicles subject to registration which are transferred
  9 28 from a corporation that is primarily engaged in the business
  9 29 of leasing vehicles subject to registration to a corporation
  9 30 that is primarily engaged in the business of leasing vehicles
  9 31 subject to registration when the transferor and transferee
  9 32 corporations are part of the same controlled group for federal
  9 33 income tax purposes.
  9 34    (5)  (a)  Vehicles registered or operated under chapter 326
  9 35 and used substantially in interstate commerce.  For purposes
 10  1 of this subparagraph (5), "substantially in interstate
 10  2 commerce" means that a minimum of twenty=five percent of the
 10  3 miles operated by the vehicle accrues in states other than
 10  4 Iowa.  This subparagraph (5) applies only to vehicles which
 10  5 are registered for a gross weight of thirteen tons or more.
 10  6    (b)  For purposes of this subparagraph (5), trailers and
 10  7 semitrailers registered or operated under chapter 326 are
 10  8 deemed to be used substantially in interstate commerce and to
 10  9 be registered for a gross weight of thirteen tons or more.
 10 10    (c)  For the purposes of this subparagraph (5), if a
 10 11 vehicle meets the requirement that twenty=five percent of the
 10 12 miles operated accrues in states other than Iowa in each year
 10 13 of the first four=year period of operation, the exemption from
 10 14 the fee for new registration shall continue until the vehicle
 10 15 is sold or transferred.  If the vehicle is found to have not
 10 16 met the exemption requirements or the exemption was revoked,
 10 17 the value of the vehicle upon which the fee for new
 10 18 registration shall be imposed is based on the original
 10 19 purchase price if revocation or nonqualification for this
 10 20 exemption occurs during the first year following registration.
 10 21 If revocation or nonqualification for this exemption occurs
 10 22 after the first year following registration, the value of the
 10 23 vehicle upon which the fee shall be imposed is the book or
 10 24 market value, whichever is less, at the time the exemption
 10 25 requirements were not met or the exemption was revoked.
 10 26    (6)  Vehicles subject to registration in any state when
 10 27 purchased for rental or registered and titled by a motor
 10 28 vehicle dealer licensed pursuant to chapter 322 for rental
 10 29 use, and held for rental for a period of one hundred twenty
 10 30 days or more and actually rented for periods of sixty days or
 10 31 less by a person regularly engaged in the business of renting
 10 32 vehicles including but not limited to motor vehicle dealers
 10 33 licensed pursuant to chapter 322 who rent automobiles to
 10 34 users, if the rental of the vehicles is subject to taxation
 10 35 under chapter 423C.
 11  1    (7)  Vehicles subject to registration in this state for
 11  2 which the applicant for registration has paid to another state
 11  3 a state sales, use, or occupational tax.  However, if the tax
 11  4 paid to another state is less than the fee for new
 11  5 registration calculated for the vehicle, the difference shall
 11  6 be the amount to be collected as the fee for new registration.
 11  7    (8)  A vehicle subject to registration in this state which
 11  8 is owned by a person who has moved from another state with the
 11  9 intention of changing residency to Iowa, provided that the
 11 10 vehicle was purchased for use in the state from which the
 11 11 applicant moved and was not, at or near the time of purchase,
 11 12 purchased for use in Iowa.
 11 13    (9)  A vehicle that was previously registered in this state
 11 14 and was subsequently registered in another state is not
 11 15 subject to the fee for new registration when it is again
 11 16 registered in this state, provided that the applicant for
 11 17 registration has maintained ownership of the vehicle since its
 11 18 initial registration in this state and has previously paid the
 11 19 use tax or fee for new registration for the vehicle in this
 11 20 state.
 11 21    (10)  Vehicles transferred by operation of law as provided
 11 22 in section 321.47.
 11 23    (11)  Vehicles for which ownership is transferred to or
 11 24 from a revocable or irrevocable trust, if no consideration is
 11 25 present.
 11 26    (12)  Vehicles transferred to the surviving corporation for
 11 27 no consideration as a result of a corporate merger according
 11 28 to the laws of this state in which the merging corporation is
 11 29 immediately extinguished and dissolved.
 11 30    (13)  Vehicles purchased in this state by a nonresident for
 11 31 removal to the nonresident's state of residence if the
 11 32 purchaser applies to the county treasurer for a transit plate
 11 33 under section 321.109.
 11 34    (14)  Vehicles purchased by a licensed motor vehicle dealer
 11 35 for resale.
 12  1    (15)  Homemade vehicles built from parts purchased at
 12  2 retail, upon which the consumer paid a tax to the seller, but
 12  3 only on such vehicles never before registered.  This exemption
 12  4 does not apply for vehicles subject to registration which are
 12  5 made by a manufacturer engaged in the business for purpose of
 12  6 sales or rental.
 12  7    (16)  Vehicles title under a salvage certificate of title.
 12  8 However, when such a vehicle has been repaired and a regular
 12  9 certificate of title is applied for, the fee for new
 12 10 registration is due as follows:
 12 11    (a)  If the owner of the vehicle is a licensed recycler,
 12 12 unless the applicant is licensed as a vehicle dealer, the fee
 12 13 for new registration applies based on the fair market value of
 12 14 the vehicle, with deduction allowed for the cost of parts,
 12 15 supplies, and equipment for which sales tax was paid and which
 12 16 were used to rebuild the vehicle.
 12 17    (b)  If the owner is a person who is not licensed as a
 12 18 recycler or vehicle dealer, the fee for new registration
 12 19 applies based on the fair market value of the vehicle, with
 12 20 deduction allowed for the cost of parts, frames, chassis, auto
 12 21 bodies, or supplies that were purchased to rebuild the vehicle
 12 22 and for which sales tax was paid.
 12 23    (17)  A vehicle delivered to a resident Native American
 12 24 Indian on the reservation.
 12 25    (18)  A vehicle transferred from one individual to another
 12 26 as a gift in a transaction in which no consideration is
 12 27 present.
 12 28    (19)  A vehicle given by a corporation as a gift to a
 12 29 retiring employee.
 12 30    (20)  A vehicle sold by an entity where the profits from
 12 31 the sale are used by or donated to a nonprofit entity which is
 12 32 exempt from federal income taxation pursuant to section
 12 33 501(c)(3) of the Internal Revenue Code, a government entity,
 12 34 or a nonprofit private educational institution, and where the
 12 35 entire proceeds from the sale of the vehicle are expended for
 13  1 any of the following purposes:
 13  2    (a)  Educational.
 13  3    (b)  Religious.
 13  4    (c)  Charitable.  A charitable act is an act done out of
 13  5 goodwill, benevolence, and a desire to add to or to improve
 13  6 the good of humankind in general or any class or portion of
 13  7 humankind, with no pecuniary profit inuring to the person
 13  8 performing the service or giving the gift.
 13  9    (21)  A vehicle given or sold to be subsequently awarded as
 13 10 a raffle prize under chapter 99B.
 13 11    (22)  A vehicle won as a raffle prize under chapter 99B.
 13 12    (23)  A vehicle that is directly and primarily used in the
 13 13 recycling or reprocessing of waste products.
 13 14    (24)  Vehicles purchased by a person who will rebuild those
 13 15 vehicles into ambulances, rescue, or fire vehicles, provided
 13 16 the person is a licensed wholesaler of new motor vehicles.
 13 17    (25)  A vehicle repossessed by a vehicle dealer pursuant to
 13 18 the uniform commercial code, chapter 554, provided there is a
 13 19 valid lien on the title and the dealer anticipates reselling
 13 20 the vehicle.
 13 21    (26)  A vehicle repossessed by a financial institution or
 13 22 an individual by means of a foreclosure affidavit pursuant to
 13 23 the uniform commercial code, chapter 554, provided there is a
 13 24 valid lien on the vehicle and the foreclosure affidavit is
 13 25 used for the sole purpose of retaining possession of the
 13 26 vehicle until a new buyer is found.  However, if the financial
 13 27 institution or individual uses the foreclosure affidavit to
 13 28 take title to the vehicle and register the vehicle, the new
 13 29 registration fee shall be due based on the outstanding loan
 13 30 amount on the vehicle.
 13 31    (27)  A damaged vehicle acquired by an insurance company
 13 32 from a client or financial institution, provided the insurance
 13 33 company has a vehicle dealers license.
 13 34    (28)  A vehicle returned to a manufacturer and titled in
 13 35 the manufacturer's name under section 322G.12.
 14  1    (29)  A vehicle purchased directly by a federal, state, or
 14  2 local governmental agency and titled in an individual's name
 14  3 pursuant to a governmental program authorized by law.
 14  4    3.  LEASED VEHICLES.
 14  5    a.  A fee for new registration is imposed in an amount
 14  6 equal to five percent of the leased price for each vehicle
 14  7 subject to registration with a gross vehicle weight rating of
 14  8 less than sixteen thousand pounds, excluding motorcycles and
 14  9 motorized bicycles, which is leased by a lessor licensed
 14 10 pursuant to chapter 321F for a period of twelve months or
 14 11 more.  The fee for new registration shall be paid by the owner
 14 12 of the vehicle to the county treasurer from whom the
 14 13 registration receipt or certificate of title is obtained.  A
 14 14 registration receipt for a vehicle subject to registration or
 14 15 issuance of a certificate of title shall not be issued until
 14 16 the fee for new registration is paid in the initial instance.
 14 17    b.  The amount of the lease price subject to the fee for
 14 18 new registration shall be computed on each separate lease
 14 19 transaction by taking the total of the lease payments, plus
 14 20 the down payment, and excluding the following charges, if
 14 21 included as part of the lease payment:
 14 22    (1)  Title fee.
 14 23    (2)  Annual registration fees.
 14 24    (3)  Fee for new registration.
 14 25    (4)  Federal excise taxes attributable to the sale of the
 14 26 vehicle to the owner or to the lease of the vehicle by the
 14 27 owner.
 14 28    (5)  Optional service or warranty contracts subject to tax
 14 29 pursuant to section 423.2, subsection 1.
 14 30    (6)  Insurance.
 14 31    (7)  Manufacturer's rebate.
 14 32    (8)  Refundable deposit.
 14 33    (9)  Finance charges, if any, on items listed in
 14 34 subparagraphs (1) through (8).
 14 35    c.  If any or all of the items in paragraph "b",
 15  1 subparagraphs (1) through (8), are excluded from the lease
 15  2 price subject to the fee for new registration, the owner shall
 15  3 maintain adequate records of the amounts of those items.  If
 15  4 the parties to a lease enter into an agreement providing that
 15  5 the fee for new registration is to be paid by the lessee or
 15  6 included in the monthly lease payments to be paid by the
 15  7 lessee, the total cost of the fee for new registration shall
 15  8 not be included in the computation of the lease price for the
 15  9 purpose of the fee for new registration under this section.
 15 10 The county treasurer or the department of transportation shall
 15 11 require every applicant for a registration receipt for a
 15 12 vehicle subject to a fee for new registration to supply
 15 13 information as the county treasurer or the director deems
 15 14 necessary as to the date of the lease transaction, the lease
 15 15 price, and other information relative to the lease of the
 15 16 vehicle.
 15 17    d.  On or before the tenth day of each month, the county
 15 18 treasurer or the department of transportation shall remit to
 15 19 the department of revenue the amount of the fees for new
 15 20 registration collected during the preceding month.
 15 21    e.  If the lease is terminated prior to the termination
 15 22 date contained in the lease agreement, no refund shall be
 15 23 allowed for a fee for new registration previously paid under
 15 24 this section, except as provided in section 322G.4.
 15 25    4.  ADMINISTRATION AND ENFORCEMENT == DIRECTOR OF REVENUE.
 15 26    a.  The director of revenue in consultation with the
 15 27 department of transportation shall administer and enforce the
 15 28 fee for new registration as nearly as possible in conjunction
 15 29 with the administration and enforcement of the state use tax
 15 30 law, except that portion of the law which implements the
 15 31 streamlined sales and use tax agreement.  The director shall
 15 32 provide appropriate forms, or provide on the annual
 15 33 registration forms provided by the department of
 15 34 transportation, for reporting the fee for new registration
 15 35 liability.
 16  1    b.  Section 422.25, subsection 4, sections 422.30, 422.67,
 16  2 and 422.68, section 422.69, subsection 1, sections 422.70,
 16  3 422.71, 422.72, 422.74, and 422.75, section 423.14, subsection
 16  4 2, and sections 423.23, 423.24, 423.25, 423.32, 423.33,
 16  5 423.35, 423.37 through 423.42, 423.45, and 423.47, consistent
 16  6 with the provisions of this section, apply with respect to the
 16  7 fees for new registration authorized under this section in the
 16  8 same manner and with the same effect as if the fees for new
 16  9 registration were retail use taxes within the meaning of those
 16 10 statutes.
 16 11    5.  COLLECTIONS BY LICENSED DEALERS.
 16 12    a.  A licensed vehicle dealer maintaining a place of
 16 13 business in this state who sells a vehicle subject to
 16 14 registration for use in this state shall collect the fee for
 16 15 new registration at the time of making the sale.  A dealer
 16 16 required to collect the fee for new registration shall give to
 16 17 the purchaser a receipt for the fee in the manner and form
 16 18 prescribed by the director.  Fees collected by a dealer under
 16 19 this section shall be forwarded to the county treasurer in the
 16 20 same manner as annual registration fees.
 16 21    b.  If an amount of the fee for new registration
 16 22 represented by a dealer to the purchaser of a vehicle is
 16 23 computed upon a purchase price that is not subject to the fee
 16 24 for new registration or the amount represented is in excess of
 16 25 the actual amount subject to the fee and the amount
 16 26 represented is actually paid by the purchaser to the dealer,
 16 27 the excess amount of fee for new registration paid shall be
 16 28 returned to the purchaser upon notification to the dealer by
 16 29 the department that an excess payment exists.
 16 30    c.  If an amount of the fee for new registration
 16 31 represented by a dealer to a purchaser is computed upon a
 16 32 purchase price that is not subject to the fee for new
 16 33 registration or the amount represented is in excess of the
 16 34 actual amount subject to the fee and the amount represented is
 16 35 actually paid by the purchaser to the dealer, the excess
 17  1 amount of fee for new registration paid shall be returned to
 17  2 the purchaser upon proper notification to the dealer by the
 17  3 purchaser that an excess payment exists.  "Proper"
 17  4 notification is written notification which allows a dealer at
 17  5 least sixty days to respond and which contains enough
 17  6 information to allow a dealer to determine the validity of a
 17  7 purchaser's claim that an excess amount of fee for new
 17  8 registration has been paid.  No cause of action shall accrue
 17  9 against a dealer for excess fee for new registration paid
 17 10 until sixty days after proper notice has been given the dealer
 17 11 by the purchaser.
 17 12    d.  In the circumstances described in paragraphs "b" and
 17 13 "c", a dealer has the option to either return any excess
 17 14 amount of fee for new registration paid to a purchaser, or to
 17 15 remit the amount which a purchaser has paid to the dealer to
 17 16 the department.
 17 17    6.  REFUNDS.
 17 18    a.  A fee for new registration is not refundable, except in
 17 19 the following circumstances:
 17 20    (1)  If a vehicle is sold and later returned to the seller
 17 21 and the entire purchase price is refunded by the seller, the
 17 22 purchaser is entitled to a refund of the fee for new
 17 23 registration paid.  To obtain a refund, the purchaser shall
 17 24 make application on forms provided by the department and show
 17 25 proof that the entire purchase price was returned and that the
 17 26 fee for new registration had been paid.
 17 27    (2)  If a vehicle manufacturer reimburses a purchaser for
 17 28 the fee for new registration paid on a returned defective
 17 29 vehicle, the manufacturer may obtain a refund from the
 17 30 department by providing proof that the fee was paid and the
 17 31 purchaser reimbursed in accordance with the provisions of
 17 32 chapter 322G.
 17 33    (3)  If the department determines that, as a result of
 17 34 mistake, an amount of the fee for new registration has been
 17 35 paid which was not due, such amount shall be refunded to the
 18  1 vehicle owner by the department.
 18  2    b.  A claim for refund under this subsection that has not
 18  3 been filed with the department within one year after the fee
 18  4 for new registration was paid shall not be allowed by the
 18  5 director.
 18  6    7.  PENALTY FOR FALSE STATEMENT.  A person who willfully
 18  7 makes a false statement in regard to the purchase price of a
 18  8 vehicle subject to a fee for new registration is guilty of a
 18  9 fraudulent practice.  A person who willfully makes a false
 18 10 statement in regard to the purchase price of such a vehicle
 18 11 with the intent to evade payment of the fee for new
 18 12 registration shall be assessed a penalty of seventy=five
 18 13 percent of the amount of the fee unpaid and required to be
 18 14 paid on the actual purchase price less trade=in allowance.
 18 15                          DIVISION III
 18 16                 MOTOR VEHICLE USE TAX == REPEAL
 18 17    Sec. 11.  Section 423.6, subsections 8, 10, 11, 12, 16, 17,
 18 18 18, 24, and 25, Code 2007, are amended by striking the
 18 19 subsections.
 18 20    Sec. 12.  Section 423.14, subsection 2, paragraph a, Code
 18 21 2007, is amended to read as follows:
 18 22    a.  The tax upon the use of all vehicles subject to
 18 23 registration or subject only to the issuance of a certificate
 18 24 of title or the tax upon the use of manufactured housing shall
 18 25 be collected by the county treasurer or the state department
 18 26 of transportation pursuant to sections section 423.26 and
 18 27 423.27, subsection 1.  The county treasurer shall retain one
 18 28 dollar from each tax payment collected, to be credited to the
 18 29 county general fund.
 18 30    Sec. 13.  Section 423.26, Code 2007, is amended to read as
 18 31 follows:
 18 32    423.26  VEHICLES SUBJECT TO REGISTRATION OR ONLY TO THE
 18 33 ISSUANCE OF TITLE == MANUFACTURED HOUSING == VEHICLE LEASE
 18 34 TRANSACTIONS NOT REQUIRING TITLE OR REGISTRATION.
 18 35    1.  a.  The use tax imposed upon the use of vehicles
 19  1 subject to registration or subject only to the issuance of a
 19  2 certificate of title or imposed upon the use of manufactured
 19  3 housing shall be paid by the owner of the vehicle or of the
 19  4 manufactured housing to the county treasurer or the state
 19  5 department of transportation from whom the registration
 19  6 receipt or certificate of title is obtained.  A registration
 19  7 receipt for a vehicle subject to registration or certificate
 19  8 of title shall not be issued until the tax has been paid.  The
 19  9 county treasurer or the state department of transportation
 19 10 shall require every applicant for a registration receipt for a
 19 11 vehicle subject to registration or certificate of title to
 19 12 supply information as the county treasurer or the director
 19 13 deems necessary as to the time of purchase, the purchase
 19 14 price, installed purchase price, and other information
 19 15 relative to the purchase of the vehicle or manufactured
 19 16 housing.  On or before the tenth day of each month, the county
 19 17 treasurer or the state department of transportation shall
 19 18 remit to the department the amount of the taxes collected
 19 19 during the preceding month.
 19 20    b.  A person who willfully makes a false statement in
 19 21 regard to the purchase price of a vehicle subject to taxation
 19 22 under this section subsection is guilty of a fraudulent
 19 23 practice.  A person who willfully makes a false statement in
 19 24 regard to the purchase price of such a vehicle with the intent
 19 25 to evade the payment of tax shall be assessed a penalty of
 19 26 seventy=five percent of the amount of tax unpaid and required
 19 27 to be paid on the actual purchase price less trade=in
 19 28 allowance.
 19 29    2.  a.  The use tax imposed upon the use of leased vehicles
 19 30 if the lease transaction does not require titling or
 19 31 registration of the vehicle shall be remitted to the
 19 32 department.  Tax and the reporting of tax due to the
 19 33 department shall be remitted on or before fifteen days from
 19 34 the last day of the month that the tax becomes due.  Failure
 19 35 to timely report or remit any of the tax when due shall result
 20  1 in a penalty and interest being imposed on the tax due
 20  2 pursuant to section 423.40, subsection 1, and section 423.42,
 20  3 subsection 1.
 20  4    b.  The amount subject to tax shall be computed on each
 20  5 separate lease transaction by taking the total of the lease
 20  6 payments, plus the down payment, and excluding all of the
 20  7 following:
 20  8    (1)  Title fee.
 20  9    (2)  Registration fees.
 20 10    (3)  Use tax pursuant to this subsection.
 20 11    (4)  Federal excise taxes attributable to the sale of the
 20 12 vehicle to the owner or to the lease of the vehicle by the
 20 13 owner.
 20 14    (5)  Optional service or warranty contracts subject to tax
 20 15 pursuant to section 423.2, subsection 1.
 20 16    (6)  Insurance.
 20 17    (7)  Manufacturer's rebate.
 20 18    (8)  Refundable deposit.
 20 19    (9)  Finance charges, if any, on items listed in
 20 20 subparagraphs (1) through (8).
 20 21    c.  If any or all of the items in paragraph "b",
 20 22 subparagraphs (1) through (8) are excluded from the taxable
 20 23 lease price, the owner shall maintain adequate records of the
 20 24 amounts of those items.  If the parties to a lease enter into
 20 25 an agreement providing that the tax imposed under this
 20 26 subsection is to be paid by the lessee or included in the
 20 27 monthly lease payments to be paid by the lessee, the total
 20 28 cost of the tax shall not be included in the computation of
 20 29 lease price for the purpose of taxation under this subsection.
 20 30    Sec. 14.  Section 423.43, Code Supplement 2007, is amended
 20 31 by striking the section and inserting in lieu thereof the
 20 32 following:
 20 33    423.43  DEPOSIT OF REVENUES.
 20 34    1.  Except as provided in subsection 2, all revenue arising
 20 35 under the operation of the use tax under subchapter III shall
 21  1 be deposited into the general fund of the state.
 21  2    2.  All revenue derived from the use tax imposed pursuant
 21  3 to section 423.26 shall be deposited into the road use tax
 21  4 fund.
 21  5    Sec. 15.  Section 423.27, Code 2007, is repealed.
 21  6                           DIVISION IV
 21  7                      CONFORMING AMENDMENTS
 21  8    Sec. 16.  Section 29A.101A, subsection 5, Code Supplement
 21  9 2007, is amended to read as follows:
 21 10    5.  Rents or lease amounts unpaid for the period preceding
 21 11 the effective date of the lease termination shall be paid on a
 21 12 prorated basis.  In the case of a vehicle lease, the lessor
 21 13 shall not impose an early termination charge, but any taxes,
 21 14 summonses, and title and registration fees, including the fee
 21 15 for new registration, and any other obligation and liability
 21 16 of the lessee in accordance with the terms of the lease,
 21 17 including reasonable charges to the lessee for excess wear,
 21 18 use, and mileage, that are due and unpaid at the time of
 21 19 termination of the lease shall be paid by the lessee.
 21 20    Sec. 17.  Section 321.17, Code 2007, is amended to read as
 21 21 follows:
 21 22    321.17  MISDEMEANOR TO VIOLATE REGISTRATION PROVISIONS.
 21 23    It is a simple misdemeanor punishable as a scheduled
 21 24 violation under section 805.8A, subsection 2, paragraph "b",
 21 25 for any person to drive or move or for an owner knowingly to
 21 26 permit to be driven or moved upon the highway a vehicle of a
 21 27 type required to be registered under this chapter which is not
 21 28 registered, or for which the appropriate fee has fees have not
 21 29 been paid, except as provided in section 321.109, subsection
 21 30 3.
 21 31    Sec. 18.  Section 321.19, subsection 1, unnumbered
 21 32 paragraph 1, Code 2007, is amended to read as follows:
 21 33    All vehicles owned or leased for a period of sixty days or
 21 34 more by the government and used in the transaction of official
 21 35 business by the representatives of foreign governments or by
 22  1 officers, boards, or departments of the government of the
 22  2 United States, and by the state, counties, municipalities and
 22  3 other political subdivisions of the state including vehicles
 22  4 used by an urban transit company operated by a municipality or
 22  5 a regional transit system, and self=propelling vehicles used
 22  6 neither for the conveyance of persons for hire, pleasure, or
 22  7 business nor for the transportation of freight other than
 22  8 those used by an urban transit company operated by a
 22  9 municipality or a regional transit system, all fire trucks,
 22 10 providing they are not owned and operated for a pecuniary
 22 11 profit, and authorized emergency vehicles used only in
 22 12 disaster relief owned and operated by an organization not
 22 13 operated for pecuniary profit, are exempted from the payment
 22 14 of the registration fees imposed by this chapter, except as
 22 15 provided for urban transit companies in subsection 2, but are
 22 16 not exempt from the penalties provided in this chapter.
 22 17    Sec. 19.  Section 321.20, subsection 1, paragraph a, Code
 22 18 2007, is amended to read as follows:
 22 19    a.  The full legal name; social security number or Iowa
 22 20 driver's license number or Iowa nonoperator's identification
 22 21 card number; date of birth; bona fide residence; and mailing
 22 22 address of the owner and of the lessee if the vehicle is being
 22 23 leased.  If the owner or lessee is a firm, association, or
 22 24 corporation, the application shall contain the bona fide
 22 25 business address and federal employer identification number of
 22 26 the owner or lessee.  Up to three owners' names may be listed
 22 27 on the application.  If the vehicle is a leased vehicle, the
 22 28 application shall state whether the notice of registration
 22 29 renewal shall be sent to the lessor or to the lessee and
 22 30 whether the lessor or the lessee shall receive the
 22 31 registration fee refund of the annual registration fee, if
 22 32 any.  Information relating to the lessee of a vehicle shall
 22 33 not be required on an application for registration and a
 22 34 certificate of title for a vehicle with a gross vehicle weight
 22 35 rating of ten thousand pounds or more.
 23  1    Sec. 20.  Section 321.20, subsection 1, paragraph e, Code
 23  2 2007, is amended to read as follows:
 23  3    e.  The amount of the fee for new registration to be paid
 23  4 under section 321.105A or the amount of tax to be paid under
 23  5 section 423.26, subsection 1.
 23  6    Sec. 21.  Section 321.20A, Code 2007, is amended to read as
 23  7 follows:
 23  8    321.20A  CERTIFICATE OF TITLE AND REGISTRATION FEES ==
 23  9 COMMERCIAL VEHICLES.
 23 10    1.  Notwithstanding other provisions of this chapter, the
 23 11 owner of a commercial vehicle subject to the proportional
 23 12 registration provisions of chapter 326 may make application to
 23 13 the department or the appropriate county treasurer for a
 23 14 certificate of title.  The application for certificate of
 23 15 title shall be made within thirty days of purchase or transfer
 23 16 and shall be accompanied by a ten dollar title fee and the
 23 17 appropriate use tax fee for new registration.  The department
 23 18 or the county treasurer shall deliver the certificate of title
 23 19 to the owner if there is no security interest.  If there is a
 23 20 security interest, the title, when issued, shall be delivered
 23 21 to the first secured party.  Delivery may be made using
 23 22 electronic means.
 23 23    2.  An owner of more than fifty commercial vehicles subject
 23 24 to the proportional registration provisions of chapter 326 who
 23 25 is issued a certificate of title under this section shall not
 23 26 be subject to annual registration fees until the commercial
 23 27 vehicle is driven or moved upon the highways.  The annual
 23 28 registration fee due shall be prorated for the remaining
 23 29 unexpired months of the registration year.  Ownership of the
 23 30 commercial vehicle shall not be transferred until annual
 23 31 registration fees have been paid to the department.
 23 32    Sec. 22.  Section 321.23, subsection 3, Code 2007, is
 23 33 amended to read as follows:
 23 34    3.  In the event an applicant for registration of a foreign
 23 35 vehicle for which a certificate of title has been issued is
 24  1 able to furnish evidence of being the registered owner of the
 24  2 vehicle to the county treasurer of the owner's residence,
 24  3 although unable to surrender such certificate of title, the
 24  4 county treasurer may issue a registration receipt and plates
 24  5 upon receipt of the required annual registration fee and the
 24  6 fee for new registration fee but shall not issue a certificate
 24  7 of title thereto.  Upon surrender of the certificate of title
 24  8 from the foreign state, the county treasurer shall issue a
 24  9 certificate of title to the owner, or person entitled thereto,
 24 10 of such vehicle as provided in this chapter.  The owner of a
 24 11 vehicle registered under this subsection shall not be required
 24 12 to obtain a certificate of title in this state and may
 24 13 transfer ownership of the vehicle to a motor vehicle dealer
 24 14 licensed under chapter 322 if, at the time of the transfer,
 24 15 the certificate of title is held by a secured party and the
 24 16 dealer has forwarded to the secured party the sum necessary to
 24 17 discharge the security interest pursuant to section 321.48,
 24 18 subsection 1.
 24 19    Sec. 23.  Section 321.24, subsections 1, 3, and 10, Code
 24 20 Supplement 2007, are amended to read as follows:
 24 21    1.  Upon receipt of the application for title and payment
 24 22 of the required fees for a motor vehicle, trailer, or
 24 23 semitrailer, the county treasurer or the department shall,
 24 24 when satisfied as to the application's genuineness and
 24 25 regularity, and, in the case of a mobile home or manufactured
 24 26 home, that taxes are not owing under chapter 423 or 435, issue
 24 27 a certificate of title and, except for a mobile home or
 24 28 manufactured home, a registration receipt, and shall file the
 24 29 application, the manufacturer's or importer's certificate, the
 24 30 certificate of title, or other evidence of ownership, as
 24 31 prescribed by the department.  The registration receipt shall
 24 32 be delivered to the owner and shall contain upon its face the
 24 33 date issued, the name and address of the owner, the
 24 34 registration number assigned to the vehicle, the amount of the
 24 35 fee paid, the amount of tax paid pursuant to section 423.26,
 25  1 the type of fuel used, a description of the vehicle as
 25  2 determined by the department, and a form for notice of
 25  3 transfer of the vehicle.  The name and address of any lessee
 25  4 of the vehicle shall not be printed on the registration
 25  5 receipt or certificate of title.  Up to three owners may be
 25  6 listed on the registration receipt and certificate of title.
 25  7    3.  The certificate of title shall contain upon its face
 25  8 the identical information required upon the face of the
 25  9 registration receipt.  In addition, the certificate of title
 25 10 shall contain a statement of the owner's title, the title
 25 11 number assigned to the owner or owners of the vehicle, the
 25 12 amount of tax paid pursuant to section 423.26, the name and
 25 13 address of the previous owner, and a statement of all security
 25 14 interests and encumbrances as shown in the application, upon
 25 15 the vehicle described, including the nature of the security
 25 16 interest, date of perfection, and name and address of the
 25 17 secured party.
 25 18    10.  A vehicle shall be registered for the registration
 25 19 year.  A vehicle registered for the first time in this state
 25 20 shall be registered for the remaining unexpired months of the
 25 21 registration year and pay a an annual registration fee
 25 22 prorated for the remaining unexpired months of the
 25 23 registration year plus a fee for new registration if
 25 24 applicable pursuant to section 321.105A.  Except for a vehicle
 25 25 registered under chapter 326, a vehicle registered for the
 25 26 first time during the eleventh month of the owner's
 25 27 registration year may be registered for the remaining
 25 28 unexpired months of the registration year as provided in this
 25 29 paragraph or for the remaining unexpired months of the
 25 30 registration year and for the next registration year, upon
 25 31 payment of the applicable registration fees.
 25 32    Sec. 24.  Section 321.26, subsection 2, Code 2007, is
 25 33 amended to read as follows:
 25 34    2.  The county treasurer may adjust the renewal or
 25 35 expiration date of vehicles when deemed necessary to equalize
 26  1 the number of vehicles registered in each twelve=month period
 26  2 or for the administrative efficiency of the county treasurer's
 26  3 office.  The adjustment shall be accomplished by delivery of a
 26  4 written notice to the vehicle owner of the adjustment and
 26  5 allowance of a credit for the remaining months of the unused
 26  6 portion of the annual registration fee, rounded to the nearest
 26  7 whole dollar, which amount shall be deducted from the annual
 26  8 registration fee due at the time of registration.  Upon
 26  9 receipt of the notification the owner shall, within thirty
 26 10 days, surrender the registration card and registration plates
 26 11 to the county treasurer of the county where the vehicle is
 26 12 registered, except that the registration plates shall not be
 26 13 surrendered if validation stickers or other emblems are used
 26 14 to designate the month and year of expiration of registration.
 26 15 Upon payment of the annual registration fee, less the credit
 26 16 allowed for the remaining months of the unused portion of the
 26 17 annual registration fee, the county treasurer shall issue a
 26 18 new registration card and registration plates, validation
 26 19 stickers, or emblems which indicate the month and year of
 26 20 expiration of registration.
 26 21    Sec. 25.  Section 321.30, subsection 1, paragraphs e and f,
 26 22 Code Supplement 2007, are amended to read as follows:
 26 23    e.  That the required fee has registration fees have not
 26 24 been paid except as provided in section 321.48.
 26 25    f.  That For a vehicle subject only to a certificate of
 26 26 title or a manufactured home, that the required use tax has
 26 27 not been paid.
 26 28    Sec. 26.  Section 321.30, subsection 3, paragraph b, Code
 26 29 Supplement 2007, is amended to read as follows:
 26 30    b.  If the applicant for registration of the vehicle has
 26 31 failed to pay the required annual registration fees fee or the
 26 32 fee for new registration of any vehicle owned or previously
 26 33 owned when the registration fee was required to be paid by the
 26 34 applicant, and for which vehicle the registration was
 26 35 suspended or revoked under section 321.101, subsection 1,
 27  1 paragraph "d", or section 321.101A, until the fees are fee is
 27  2 paid together with any accrued penalties.
 27  3    Sec. 27.  Section 321.34, subsection 2, unnumbered
 27  4 paragraph 1, Code Supplement 2007, is amended to read as
 27  5 follows:
 27  6    In lieu of issuing new registration plates each
 27  7 registration year for a vehicle renewing registration, the
 27  8 department may reassign the registration plates previously
 27  9 issued to the vehicle and may adopt and prescribe an annual
 27 10 validation sticker indicating payment of annual registration
 27 11 fees.  The department shall issue one validation sticker for
 27 12 each set of registration plates.  The sticker shall specify
 27 13 the month and year of expiration of the registration plates.
 27 14 The sticker shall be displayed only on the rear registration
 27 15 plate, except that the sticker shall be displayed on the front
 27 16 registration plate of a truck tractor.
 27 17    Sec. 28.  Section 321.34, subsection 5, paragraphs b and c,
 27 18 Code Supplement 2007, is amended to read as follows:
 27 19    b.  The county treasurer shall validate personalized
 27 20 registration plates in the same manner as regular registration
 27 21 plates are validated under this section at an annual fee of
 27 22 five dollars in addition to the regular annual registration
 27 23 fee.  A person renewing a personalized registration plate
 27 24 within one month following the time requirements under section
 27 25 321.40 may renew the personalized plate without paying the
 27 26 additional registration fee under paragraph "a" but shall pay
 27 27 the five=dollar fee in addition to the regular annual
 27 28 registration fee and any penalties subject to regular
 27 29 registration plate holders for late renewal.
 27 30    c.  The fees collected by the director under this section
 27 31 subsection shall be paid to the treasurer of state and
 27 32 credited by the treasurer of state as provided in section
 27 33 321.145.
 27 34    Sec. 29.  Section 321.34, subsection 7, paragraph c, Code
 27 35 Supplement 2007, is amended to read as follows:
 28  1    c.  (1)  The fees for a collegiate registration plate are
 28  2 as follows:
 28  3    (1)  (a)  A registration fee of twenty=five dollars.
 28  4    (2)  (b)  A special collegiate registration fee of
 28  5 twenty=five dollars.
 28  6    (2)  These fees are in addition to the regular annual
 28  7 registration fee.  The fees collected by the director under
 28  8 this subsection shall be paid monthly to the treasurer of
 28  9 state and credited by the treasurer of state to deposited in
 28 10 the road use tax fund.  Notwithstanding section 423.43 and
 28 11 prior to the revenues being credited to the road use tax fund
 28 12 under section 423.43, subsection 1, paragraph "b", the The
 28 13 treasurer of state shall credit monthly from those revenues
 28 14 respectively the revenues available for purposes of this
 28 15 subsection under section 321.145, subsection 2, to Iowa state
 28 16 university of science and technology, the university of
 28 17 northern Iowa, and the state university of Iowa respectively,
 28 18 the amount of the special collegiate registration fees
 28 19 collected in the previous month for collegiate registration
 28 20 plates designed for the university.  The moneys credited are
 28 21 appropriated to the respective universities to be used for
 28 22 scholarships for students attending the universities.
 28 23    Sec. 30.  Section 321.34, subsection 10, paragraph c, Code
 28 24 Supplement 2007, is amended to read as follows:
 28 25    c.  The special fees collected by the director under this
 28 26 subsection shall be paid monthly to the treasurer of state and
 28 27 credited to deposited in the road use tax fund.
 28 28 Notwithstanding section 423.43, and prior to the crediting of
 28 29 revenues to the road use tax fund under section 423.43,
 28 30 subsection 1, paragraph "b", the The treasurer of state shall
 28 31 transfer monthly from those revenues the revenues available
 28 32 for purposes of this subsection under section 321.145,
 28 33 subsection 2, to the Paul Ryan memorial fire fighter safety
 28 34 training fund created pursuant to section 100B.12 the amount
 28 35 of the special fees collected in the previous month for the
 29  1 fire fighter plates.
 29  2    Sec. 31.  Section 321.34, subsection 10A, paragraph b, Code
 29  3 Supplement 2007, is amended to read as follows:
 29  4    b.  The special fees collected by the director under this
 29  5 subsection shall be paid monthly to the treasurer of state and
 29  6 credited to deposited in the road use tax fund.
 29  7 Notwithstanding section 423.43, and prior to the crediting of
 29  8 revenues to the road use tax fund under section 423.43,
 29  9 subsection 1, paragraph "b", the The treasurer of state shall
 29 10 transfer monthly from those revenues the revenues available
 29 11 for purposes of this subsection under section 321.145,
 29 12 subsection 2, to the emergency medical services fund created
 29 13 in section 135.25 the amount of the special fees collected in
 29 14 the previous month for issuance of emergency medical services
 29 15 plates.
 29 16    Sec. 32.  Section 321.34, subsection 11, paragraph c, Code
 29 17 Supplement 2007, is amended to read as follows:
 29 18    c.  (1)  The special natural resources fee for letter
 29 19 number designated natural resources plates is forty=five
 29 20 dollars.  The fee for personalized natural resources plates is
 29 21 forty=five dollars which shall be paid in addition to the
 29 22 special natural resources fee of forty=five dollars.  The fees
 29 23 collected by the director under this subsection shall be paid
 29 24 monthly to the treasurer of state and credited to deposited in
 29 25 the road use tax fund.  Notwithstanding section 423.43, and
 29 26 prior to the crediting of revenues to the road use tax fund
 29 27 under section 423.43, subsection 1, paragraph "b", the The
 29 28 treasurer of state shall credit monthly from those revenues
 29 29 the revenues available for purposes of this subsection under
 29 30 section 321.145, subsection 2, to the Iowa resources
 29 31 enhancement and protection fund created pursuant to section
 29 32 455A.18, the amount of the special natural resources fees
 29 33 collected in the previous month for the natural resources
 29 34 plates.
 29 35    (2)  From the moneys credited to the Iowa resources
 30  1 enhancement and protection fund under this paragraph "c",
 30  2 subparagraph (1), ten dollars of the fee collected for each
 30  3 natural resources plate issued, and fifteen dollars from each
 30  4 renewal fee, shall be allocated to the department of natural
 30  5 resources wildlife bureau to be used for nongame wildlife
 30  6 programs.
 30  7    Sec. 33.  Section 321.34, subsection 11A, paragraph c, Code
 30  8 Supplement 2007, is amended to read as follows:
 30  9    c.  The special fee for letter number designated love our
 30 10 kids plates is thirty=five dollars.  The fee for personalized
 30 11 love our kids plates is twenty=five dollars, which shall be
 30 12 paid in addition to the special love our kids fee of
 30 13 thirty=five dollars.  The fees collected by the director under
 30 14 this subsection shall be paid monthly to the treasurer of
 30 15 state and credited to deposited in the road use tax fund.
 30 16 Notwithstanding section 423.43, and prior to the crediting of
 30 17 revenues to the road use tax fund under section 423.43,
 30 18 subsection 1, paragraph "b", the The treasurer of state shall
 30 19 transfer monthly from those revenues the revenues available
 30 20 for purposes of this subsection under section 321.145,
 30 21 subsection 2, to the Iowa department of public health the
 30 22 amount of the special fees collected in the previous month for
 30 23 the love our kids plates.  Notwithstanding section 8.33,
 30 24 moneys transferred under this subsection shall not revert to
 30 25 the general fund of the state.
 30 26    Sec. 34.  Section 321.34, subsection 11B, paragraph c, Code
 30 27 Supplement 2007, is amended to read as follows:
 30 28    c.  The special fee for letter number designated motorcycle
 30 29 rider education plates is thirty=five dollars.  The fee for
 30 30 personalized motorcycle rider education plates is twenty=five
 30 31 dollars, which shall be paid in addition to the special
 30 32 motorcycle rider education fee of thirty=five dollars.  The
 30 33 fees collected by the director under this subsection shall be
 30 34 paid monthly to the treasurer of state and credited to
 30 35 deposited in the road use tax fund.  Notwithstanding section
 31  1 423.43, and prior to the crediting of revenues to the road use
 31  2 tax fund under section 423.43, subsection 1, paragraph "b",
 31  3 the The treasurer of state shall transfer monthly from those
 31  4 revenues the revenues available for purposes of this
 31  5 subsection under section 321.145, subsection 2, to the
 31  6 department for use in accordance with section 321.180B,
 31  7 subsection 6, the amount of the special fees collected in the
 31  8 previous month for the motorcycle rider education plates.
 31  9    Sec. 35.  Section 321.34, subsection 13, paragraph d, Code
 31 10 Supplement 2007, is amended to read as follows:
 31 11    d.  A state agency may submit a request to the department
 31 12 recommending a special registration plate.  The alternate fee
 31 13 for letter number designated plates is thirty=five dollars
 31 14 with a ten dollar annual special renewal fee.  The fee for
 31 15 personalized plates is twenty=five dollars which is in
 31 16 addition to the alternative fee of thirty=five dollars with an
 31 17 annual personalized plate renewal fee of five dollars which is
 31 18 in addition to the special renewal fee of ten dollars.  The
 31 19 alternate fees are in addition to the regular annual
 31 20 registration fee.  The alternate fees collected under this
 31 21 paragraph shall be paid monthly to the treasurer of state and
 31 22 credited to deposited in the road use tax fund.
 31 23 Notwithstanding section 423.43, and prior to the crediting of
 31 24 the revenues to the road use tax fund under section 423.43,
 31 25 subsection 1, paragraph "b", the The treasurer of state shall
 31 26 credit monthly from the revenues available for purposes of
 31 27 this subsection under section 321.145, subsection 2, the
 31 28 amount of the alternate fees collected in the previous month
 31 29 to the state agency that recommended the special registration
 31 30 plate.
 31 31    Sec. 36.  Section 321.34, subsection 16, unnumbered
 31 32 paragraph 1, Code Supplement 2007, is amended to read as
 31 33 follows:
 31 34    An owner referred to in subsection 12 who is a member of
 31 35 the national guard, as defined in chapter 29A, may, upon
 32  1 written application to the department, order special
 32  2 registration plates with a national guard processed emblem
 32  3 with the emblem designed by the department in cooperation with
 32  4 the adjutant general which emblem signifies that the applicant
 32  5 is a member of the national guard.  The application shall be
 32  6 approved by the department in consultation with the adjutant
 32  7 general.  The special plate fees collected by the director
 32  8 under subsection 12, paragraph "a", from the issuance and
 32  9 annual validation of letter=number designated and personalized
 32 10 national guard plates shall be paid monthly to the treasurer
 32 11 of state and credited to deposited in the road use tax fund.
 32 12 Notwithstanding section 423.43, and prior to the crediting of
 32 13 revenues to the road use tax fund under section 423.43,
 32 14 subsection 1, paragraph "b", the The treasurer of state shall
 32 15 transfer monthly from those revenues the revenues available
 32 16 for purposes of this subsection under section 321.145,
 32 17 subsection 2, to the veterans license fee fund created in
 32 18 section 35A.11 the amount of the special fees collected in the
 32 19 previous month for national guard plates.  Special
 32 20 registration plates with a national guard processed emblem
 32 21 shall be surrendered, as provided in subsection 12, in
 32 22 exchange for regular registration plates upon termination of
 32 23 the owner's membership in the active national guard.
 32 24    Sec. 37.  Section 321.34, subsection 17, unnumbered
 32 25 paragraph 1, Code Supplement 2007, is amended to read as
 32 26 follows:
 32 27    An owner referred to in subsection 12 who was at Pearl
 32 28 Harbor, Hawaii, as a member of the armed services of the
 32 29 United States on December 7, 1941, may, upon written
 32 30 application to the department, order special registration
 32 31 plates with a Pearl Harbor processed emblem.  The emblem shall
 32 32 be designed by the department in consultation with service
 32 33 organizations.  The application is subject to approval by the
 32 34 department.  The special plate fees collected by the director
 32 35 under subsection 12, paragraph "a", from the issuance and
 33  1 annual validation of letter=number designated and personalized
 33  2 Pearl Harbor plates shall be paid monthly to the treasurer of
 33  3 state and credited to deposited in the road use tax fund.
 33  4 Notwithstanding section 423.43, and prior to the crediting of
 33  5 revenues to the road use tax fund under section 423.43,
 33  6 subsection 1, paragraph "b", the The treasurer of state shall
 33  7 transfer monthly from those revenues the revenues available
 33  8 for purposes of this subsection under section 321.145,
 33  9 subsection 2, to the veterans license fee fund created in
 33 10 section 35A.11 the amount of the special fees collected in the
 33 11 previous month for Pearl Harbor plates.
 33 12    Sec. 38.  Section 321.34, subsection 18, unnumbered
 33 13 paragraph 1, Code Supplement 2007, is amended to read as
 33 14 follows:
 33 15    An owner referred to in subsection 12 who was awarded a
 33 16 purple heart medal by the United States government for wounds
 33 17 received in military or naval combat against an armed enemy of
 33 18 the United States may, upon written application to the
 33 19 department and presentation of satisfactory proof of the award
 33 20 of the purple heart medal, order special registration plates
 33 21 with a purple heart processed emblem.  The design of the
 33 22 emblem shall include a representation of a purple heart medal
 33 23 and ribbon.  The application is subject to approval by the
 33 24 department in consultation with the adjutant general.  The
 33 25 special plate fees collected by the director under subsection
 33 26 12, paragraph "a", from the issuance and annual validation of
 33 27 letter=number designated and personalized purple heart plates
 33 28 shall be paid monthly to the treasurer of state and credited
 33 29 to deposited in the road use tax fund.  Notwithstanding
 33 30 section 423.43, and prior to the crediting of revenues to the
 33 31 road use tax fund under section 423.43, subsection 1,
 33 32 paragraph "b", the The treasurer of state shall transfer
 33 33 monthly from those revenues the revenues available for
 33 34 purposes of this subsection under section 321.145, subsection
 33 35 2, to the veterans license fee fund created in section 35A.11
 34  1 the amount of the special fees collected in the previous month
 34  2 for purple heart plates.
 34  3    Sec. 39.  Section 321.34, subsection 19, unnumbered
 34  4 paragraph 1, Code Supplement 2007, is amended to read as
 34  5 follows:
 34  6    An owner referred to in subsection 12 who is a retired
 34  7 member of the United States armed forces may, upon written
 34  8 application to the department and upon presentation of
 34  9 satisfactory proof of membership, order special registration
 34 10 plates with a United States armed forces retired processed
 34 11 emblem.  The emblem shall be designed by the department in
 34 12 consultation with service organizations.  The application is
 34 13 subject to approval by the department.  For purposes of this
 34 14 subsection, a person is considered to be retired if the person
 34 15 is recognized by the United States armed forces as retired
 34 16 from the United States armed forces.  The special plate fees
 34 17 collected by the director under subsection 12, paragraph "a",
 34 18 from the issuance and annual validation of letter=number
 34 19 designated and personalized armed forces retired plates shall
 34 20 be paid monthly to the treasurer of state and credited to
 34 21 deposited in the road use tax fund.  Notwithstanding section
 34 22 423.43, and prior to the crediting of revenues to the road use
 34 23 tax fund under section 423.43, subsection 1, paragraph "b",
 34 24 the The treasurer of state shall transfer monthly from those
 34 25 revenues the revenues available for purposes of this
 34 26 subsection under section 321.145, subsection 2, to the
 34 27 veterans license fee fund created in section 35A.11 the amount
 34 28 of the special fees collected in the previous month for armed
 34 29 forces retired plates.
 34 30    Sec. 40.  Section 321.34, subsection 20, unnumbered
 34 31 paragraph 1, Code Supplement 2007, is amended to read as
 34 32 follows:
 34 33    An owner referred to in subsection 12 who was awarded a
 34 34 silver or a bronze star by the United States government, may,
 34 35 upon written application to the department and presentation of
 35  1 satisfactory proof of the award of the silver or bronze star,
 35  2 order special registration plates with a silver or bronze star
 35  3 processed emblem.  The emblem shall be designed by the
 35  4 department in consultation with the adjutant general.  The
 35  5 special plate fees collected by the director under subsection
 35  6 12, paragraph "a", from the issuance and annual validation of
 35  7 letter=number designated and personalized silver star and
 35  8 bronze star plates shall be paid monthly to the treasurer of
 35  9 state and credited to deposited in the road use tax fund.
 35 10 Notwithstanding section 423.43, and prior to the crediting of
 35 11 revenues to the road use tax fund under section 423.43,
 35 12 subsection 1, paragraph "b", the The treasurer of state shall
 35 13 transfer monthly from those revenues the revenues available
 35 14 for purposes of this subsection under section 321.145,
 35 15 subsection 2, to the veterans license fee fund created in
 35 16 section 35A.11 the amount of the special fees collected in the
 35 17 previous month for silver star and bronze star plates.
 35 18    Sec. 41.  Section 321.34, subsection 20A, unnumbered
 35 19 paragraph 1, Code Supplement 2007, is amended to read as
 35 20 follows:
 35 21    An owner referred to in subsection 12 who was awarded a
 35 22 distinguished service cross, a navy cross, or an air force
 35 23 cross by the United States government may, upon written
 35 24 application to the department and presentation of satisfactory
 35 25 proof of the award, order special registration plates with a
 35 26 distinguished service cross, navy cross, or air force cross
 35 27 processed emblem.  The emblem shall be designed by the
 35 28 department in consultation with the adjutant general.  The
 35 29 special plate fees collected by the director under subsection
 35 30 12, paragraph "a", from the issuance and annual validation of
 35 31 letter=number designated and personalized distinguished
 35 32 service cross, navy cross, and air force cross plates shall be
 35 33 paid monthly to the treasurer of state and credited to
 35 34 deposited in the road use tax fund.  Notwithstanding section
 35 35 423.43, and prior to the crediting of revenues to the road use
 36  1 tax fund under section 423.43, subsection 1, paragraph "b",
 36  2 the The treasurer of state shall transfer monthly from those
 36  3 revenues the revenues available for purposes of this
 36  4 subsection under section 321.145, subsection 2, to the
 36  5 veterans license fee fund created in section 35A.11 the amount
 36  6 of the special fees collected in the previous month for
 36  7 distinguished service cross, navy cross, and air force cross
 36  8 plates.
 36  9    Sec. 42.  Section 321.34, subsection 20B, unnumbered
 36 10 paragraph 1, Code Supplement 2007, is amended to read as
 36 11 follows:
 36 12    An owner referred to in subsection 12 who was awarded a
 36 13 soldier's medal, a navy and marine corps medal, or an airman's
 36 14 medal by the United States government may, upon written
 36 15 application to the department and presentation of satisfactory
 36 16 proof of the award, order special registration plates with a
 36 17 soldier's medal, navy and marine corps medal, or airman's
 36 18 medal processed emblem.  The emblem shall be designed by the
 36 19 department in consultation with the adjutant general.  The
 36 20 special plate fees collected by the director under subsection
 36 21 12, paragraph "a", from the issuance and annual validation of
 36 22 letter=number designated and personalized soldier's medal,
 36 23 navy and marine corps medal, and airman's medal plates shall
 36 24 be paid monthly to the treasurer of state and credited to
 36 25 deposited in the road use tax fund.  Notwithstanding section
 36 26 423.43, and prior to the crediting of revenues to the road use
 36 27 tax fund under section 423.43, subsection 1, paragraph "b",
 36 28 the The treasurer of state shall transfer monthly from those
 36 29 revenues the revenues available for purposes of this
 36 30 subsection under section 321.145, subsection 2, to the
 36 31 veterans license fee fund created in section 35A.11 the amount
 36 32 of the special fees collected in the previous month for
 36 33 soldier's medal, navy and marine corps medal, and airman's
 36 34 medal plates.
 36 35    Sec. 43.  Section 321.34, subsection 21, paragraph c, Code
 37  1 Supplement 2007, is amended to read as follows:
 37  2    c.  The special fees collected by the director under this
 37  3 subsection shall be paid monthly to the treasurer of state and
 37  4 credited to deposited in the road use tax fund.
 37  5 Notwithstanding section 423.43, and prior to the crediting of
 37  6 revenues to the road use tax fund under section 423.43,
 37  7 subsection 1, paragraph "b", the The treasurer of state shall
 37  8 credit monthly from the revenues available for purposes of
 37  9 this subsection under section 321.145, subsection 2, to the
 37 10 Iowa heritage fund created under section 303.9A the amount of
 37 11 the special fees collected in the previous month for the Iowa
 37 12 heritage plates.
 37 13    Sec. 44.  Section 321.34, subsection 22, paragraph b, Code
 37 14 Supplement 2007, is amended to read as follows:
 37 15    b.  The special school transportation fee for letter number
 37 16 designated education plates is thirty=five dollars.  The fee
 37 17 for personalized education plates is twenty=five dollars,
 37 18 which shall be paid in addition to the special school
 37 19 transportation fee of thirty=five dollars.  The annual special
 37 20 school transportation fee is ten dollars for letter number
 37 21 designated registration plates and is fifteen dollars for
 37 22 personalized registration plates which shall be paid in
 37 23 addition to the regular annual registration fee.  The fees
 37 24 collected by the director under this subsection shall be paid
 37 25 monthly to the treasurer of state and credited to deposited in
 37 26 the road use tax fund.  Notwithstanding section 423.43, and
 37 27 prior to the crediting of revenues to the road use tax fund
 37 28 under section 423.43, subsection 1, paragraph "b", the The
 37 29 treasurer of state shall transfer monthly from those revenues
 37 30 the revenues available for purposes of this subsection under
 37 31 section 321.145, subsection 2, to the school budget review
 37 32 committee in accordance with section 257.31, subsection 17,
 37 33 the amount of the special school transportation fees collected
 37 34 in the previous month for the education plates.
 37 35    Sec. 45.  Section 321.34, subsection 23, paragraph c, Code
 38  1 Supplement 2007, is amended to read as follows:
 38  2    c.  The special fee for letter number designated breast
 38  3 cancer awareness plates is thirty=five dollars.  The fee for
 38  4 personalized breast cancer awareness plates is twenty=five
 38  5 dollars, which shall be paid in addition to the special breast
 38  6 cancer awareness fee of thirty=five dollars.  The fees
 38  7 collected by the director under this subsection shall be paid
 38  8 monthly to the treasurer of state and credited to deposited in
 38  9 the road use tax fund.  Notwithstanding section 423.43, and
 38 10 prior to the crediting of revenues to the road use tax fund
 38 11 under section 423.43, subsection 1, paragraph "b", the The
 38 12 treasurer of state shall transfer monthly from those revenues
 38 13 the revenues available for purposes of this subsection under
 38 14 section 321.145, subsection 2, to the Iowa department of
 38 15 public health the amount of the special fees collected in the
 38 16 previous month for the breast cancer awareness plates and such
 38 17 funds are appropriated to the Iowa department of public
 38 18 health.  The Iowa department of public health shall distribute
 38 19 one hundred percent of the funds received monthly in the form
 38 20 of grants to support breast cancer screenings for both men and
 38 21 women who meet eligibility requirements like those established
 38 22 by the Susan G. Komen foundation.  In the awarding of grants,
 38 23 the Iowa department of public health shall give first
 38 24 consideration to affiliates of the Susan G.  Komen foundation
 38 25 and similar nonprofit organizations providing for breast
 38 26 cancer screenings at no cost in Iowa.  Notwithstanding section
 38 27 8.33, moneys transferred under this subsection shall not
 38 28 revert to the general fund of the state.
 38 29    Sec. 46.  Section 321.34, subsection 24, Code Supplement
 38 30 2007, is amended to read as follows:
 38 31    24.  GOLD STAR PLATES.  An owner referred to in subsection
 38 32 12 who is the surviving spouse, parent, child, or sibling of a
 38 33 deceased member of the United States armed forces who died
 38 34 while serving on active duty during a time of military
 38 35 conflict may order special registration plates bearing a gold
 39  1 star emblem upon written application to the department
 39  2 accompanied by satisfactory supporting documentation as
 39  3 determined by the department.  The gold star emblem shall be
 39  4 designed by the department in cooperation with the commission
 39  5 of veterans affairs.  The special plate fees collected by the
 39  6 director under subsection 12, paragraph "a", from the issuance
 39  7 and annual validation of letter=number designated and
 39  8 personalized gold star plates shall be paid monthly to the
 39  9 treasurer of state and credited to deposited in the road use
 39 10 tax fund.  Notwithstanding section 423.43, and prior to the
 39 11 crediting of revenues to the road use tax fund under section
 39 12 423.43, subsection 1, paragraph "b", the The treasurer of
 39 13 state shall transfer monthly from those revenues the revenues
 39 14 available for purposes of this subsection under section
 39 15 321.145, subsection 2, to the veterans license fee fund
 39 16 created in section 35A.11 the amount of the special fees
 39 17 collected in the previous month for gold star plates.
 39 18    Sec. 47.  Section 321.39, subsections 3 and 4, Code 2007,
 39 19 are amended to read as follows:
 39 20    3.  For vehicles on which the first installment of an
 39 21 annual registration fee has been paid, at midnight on the last
 39 22 day of June or the first business day of July when June 30
 39 23 falls on Saturday, Sunday, or a holiday; for vehicles on which
 39 24 the second installment of an annual registration fee has been
 39 25 paid, at midnight on the last day of December or the first
 39 26 business day of January when December 31 falls on Saturday,
 39 27 Sunday, or a holiday.
 39 28    4.  For vehicles registered without payment of annual
 39 29 registration fees as provided in section 321.19, when
 39 30 designated by the department.
 39 31    5.  Registration for every vehicle registered by the county
 39 32 treasurer shall expire upon transfer of ownership.
 39 33    Sec. 48.  Section 321.40, subsection 1, Code Supplement
 39 34 2007, is amended to read as follows:
 39 35    1.  Application for renewal of a vehicle registration shall
 40  1 be made on or after the first day of the month prior to the
 40  2 month of expiration of registration and up to and including
 40  3 the last day of the month following the month of expiration of
 40  4 registration.  The registration shall be renewed upon payment
 40  5 of the appropriate annual registration fee.  Application for
 40  6 renewal for a vehicle registered under chapter 326 shall be
 40  7 made on or after the first day of the month of expiration of
 40  8 registration and up to and including the last day of the month
 40  9 following the month of expiration of registration.
 40 10    Sec. 49.  Section 321.46, subsections 2, 3, 4, 6, and 7,
 40 11 Code 2007, are amended to read as follows:
 40 12    2.  Upon filing the application for a new registration and
 40 13 a new title, the applicant shall pay a title fee of ten
 40 14 dollars and a, an annual registration fee prorated for the
 40 15 remaining unexpired months of the registration year, and a fee
 40 16 for new registration if applicable.  A manufacturer applying
 40 17 for a certificate of title pursuant to section 322G.12 shall
 40 18 pay a title fee of two dollars.  However, a title fee shall
 40 19 not be charged to a manufactured or mobile home retailer
 40 20 applying for a certificate of title for a used mobile home or
 40 21 manufactured home, titled in Iowa, as required under section
 40 22 321.45, subsection 4.  The county treasurer, if satisfied of
 40 23 the genuineness and regularity of the application, and in the
 40 24 case of a mobile home or manufactured home, that taxes are not
 40 25 owing under chapter 435, and that applicant has complied with
 40 26 all the requirements of this chapter, shall issue a new
 40 27 certificate of title and, except for a mobile home,
 40 28 manufactured home, or a vehicle returned to and accepted by a
 40 29 manufacturer as described in section 322G.12, a registration
 40 30 card to the purchaser or transferee, shall cancel the prior
 40 31 registration for the vehicle, and shall forward the necessary
 40 32 copies to the department on the date of issuance, as
 40 33 prescribed in section 321.24.  Mobile homes or manufactured
 40 34 homes titled under chapter 448 that have been subject under
 40 35 section 446.18 to a public bidder sale in a county shall be
 41  1 titled in the county's name, with no fee, and the county
 41  2 treasurer shall issue the title.
 41  3    3.  The applicant shall be entitled to a credit for that
 41  4 portion of the annual registration fee of the vehicle sold,
 41  5 traded, or junked which had not expired prior to the transfer
 41  6 of ownership of the vehicle.  The annual registration fee for
 41  7 the new registration for the vehicle acquired shall be reduced
 41  8 by the amount of the credit.  The credit shall be computed on
 41  9 the basis of the number of months remaining in the
 41 10 registration year, rounded to the nearest whole dollar.  The
 41 11 credit shall be subject to the following limitations:
 41 12    a.  The credit shall be claimed within thirty days from the
 41 13 date the vehicle for which credit is granted was sold,
 41 14 transferred, or junked.  After thirty days, all credits shall
 41 15 be disallowed.
 41 16    b.  Any credit granted to the owner of a vehicle which has
 41 17 been sold, traded, or junked may only be claimed by that
 41 18 person toward the annual registration fee for another vehicle
 41 19 purchased and the credit may not be sold, transferred, or
 41 20 assigned to any other person.
 41 21    c.  When the amount of the credit is computed to be an
 41 22 amount of less than ten dollars, a credit shall be disallowed.
 41 23    d.  To claim a credit for the unexpired annual registration
 41 24 fee on a junked vehicle, the county treasurer shall disallow
 41 25 any claim for credit unless the owner presents a junking
 41 26 certificate or other evidence as required by the department to
 41 27 the county treasurer.
 41 28    e.  A credit shall not be allowed to any person who has
 41 29 made claim to receive a refund under section 321.126.
 41 30    f.  If the credit allowed exceeds the amount of the annual
 41 31 registration fee for the vehicle acquired, the owner may claim
 41 32 a refund under section 321.126, subsection 6, for the balance
 41 33 of the credit.
 41 34    g.  The credit shall be computed on the unexpired number of
 41 35 months computed from the date of purchase of the vehicle
 42  1 acquired.
 42  2    4.  If the annual registration fee upon application is
 42  3 delinquent, the applicant shall be required to pay the
 42  4 delinquent fee from the first day the annual registration fee
 42  5 was due prorated to the month of application for new title.
 42  6    6.  An applicant for a new registration for a vehicle
 42  7 transferred to the applicant by a spouse, parent, or child of
 42  8 the applicant, or by operation of law upon inheritance, devise
 42  9 or bequest, from the applicant's spouse, parent, or child, or
 42 10 by a former spouse pursuant to a decree of dissolution of
 42 11 marriage, is entitled to a credit to be applied to the annual
 42 12 registration fee for the transferred vehicle.  A credit shall
 42 13 not be allowed unless the vehicle to which the credit applies
 42 14 is registered within the time specified under subsection 1.
 42 15 The credit shall be computed on the basis of the number of
 42 16 unexpired months remaining in the registration year of the
 42 17 former owner computed from the date the vehicle was
 42 18 transferred, computed to the nearest whole dollar.  The credit
 42 19 may exceed the amount of the annual registration fee for the
 42 20 transferred vehicle.  When the amount of the credit is
 42 21 computed to be an amount of less than ten dollars, the credit
 42 22 shall be disallowed.  The credit shall not be sold,
 42 23 transferred, or assigned to any other person.
 42 24    7.  If a motor vehicle is leased and the lessee purchases
 42 25 the vehicle upon termination of the lease, the lessor shall,
 42 26 upon claim by the lessee with the lessor within thirty days of
 42 27 the purchase, assign the annual registration fee credit and
 42 28 registration plates for the leased motor vehicle to the
 42 29 lessee.  Credit shall be applied as provided in subsection 3.
 42 30    Sec. 50.  Section 321.46A, Code 2007, is amended to read as
 42 31 follows:
 42 32    321.46A  CHANGE FROM PROPORTIONAL REGISTRATION == CREDIT.
 42 33    An owner changing a vehicle's registration from
 42 34 proportional registration under chapter 326 to registration
 42 35 under this chapter shall be entitled to a credit on the
 43  1 vehicle's annual registration fees under this chapter.  The
 43  2 credit shall be allowed when the owner surrenders to the
 43  3 county treasurer proof of proportional registration provided
 43  4 by the department.  The amount of the credit shall be
 43  5 calculated based on the unexpired complete calendar months
 43  6 remaining in the registration year from the date the
 43  7 application is filed with the county treasurer.
 43  8    Sec. 51.  Section 321.52, subsections 1 and 3, Code
 43  9 Supplement 2007, are amended to read as follows:
 43 10    1.  When a vehicle is sold outside the state for purposes
 43 11 other than for junk, the owner, dealer or otherwise, shall
 43 12 detach the registration plates and registration card and shall
 43 13 indicate on the registration card the name and address of the
 43 14 foreign purchaser or transferee over the person's signature.
 43 15 Unless the registration plates are legally attached to another
 43 16 vehicle, the owner shall surrender the registration plates and
 43 17 registration card to the county treasurer, who shall cancel
 43 18 the records, destroy the registration plates, and forward the
 43 19 registration card to the department.  The department shall
 43 20 make a notation on the records of the out=of=state sale and,
 43 21 after a reasonable period, may destroy the files for that
 43 22 particular vehicle.  The department is not authorized to make
 43 23 a refund of annual registration fees on a vehicle sold out of
 43 24 state unless it receives the registration card completed as
 43 25 provided in this section.
 43 26    3.  When a vehicle for which a certificate of title is
 43 27 issued is junked or dismantled by the owner, the owner shall
 43 28 detach the registration plates and surrender the plates to the
 43 29 county treasurer, unless the plates are properly assigned to
 43 30 another vehicle.  The owner shall also surrender the
 43 31 certificate of title to the county treasurer.  Upon
 43 32 surrendering the certificate of title and application for
 43 33 junking certificate, the county treasurer shall issue to the
 43 34 person, without fee, a junking certificate, which shall
 43 35 authorize the holder to possess, transport or transfer
 44  1 ownership of the junked vehicle by endorsement of the junking
 44  2 certificate.  The county treasurer shall hold the surrendered
 44  3 certificate of title, registration receipt, application for
 44  4 junking certificate, and, if applicable, the registration
 44  5 plates for a period of fourteen days following the issuance of
 44  6 a junking certificate under this subsection.  Within the
 44  7 fourteen=day period the person who was issued the junking
 44  8 certificate and to whom the vehicle was titled or assigned may
 44  9 surrender to the county treasurer the junking certificate, and
 44 10 upon the person's payment of appropriate fees and taxes and
 44 11 payment of any credit for annual registration fees received by
 44 12 the person for the vehicle under section 321.46, subsection 3,
 44 13 the county treasurer shall issue to the person a certificate
 44 14 of title for the vehicle.  After the expiration of the
 44 15 fourteen=day period, a county treasurer shall not issue a
 44 16 certificate of title for a junked vehicle for which a junking
 44 17 certificate is issued.  The county treasurer shall cancel the
 44 18 record of the vehicle and forward the certificate of title to
 44 19 the department.
 44 20    However, upon application the department upon a showing of
 44 21 good cause may issue a certificate of title after the
 44 22 fourteen=day period for a junked vehicle for which a junking
 44 23 certificate has been issued.  For purposes of this subsection,
 44 24 "good cause" means that the junking certificate was obtained
 44 25 by mistake or inadvertence.  If a person's application to the
 44 26 department is denied, the person may make application for a
 44 27 certificate of title under the bonding procedure as provided
 44 28 in section 321.24, if the vehicle qualifies as an antique
 44 29 vehicle under section 321.115, subsection 1, or the person may
 44 30 seek judicial review as provided under sections 17A.19 and
 44 31 17A.20.
 44 32    Sec. 52.  Section 321.70, Code 2007, is amended to read as
 44 33 follows:
 44 34    321.70  DEALER VEHICLES.
 44 35    A dealer registered under this chapter shall not be
 45  1 required to register any vehicle owned by the dealer which is
 45  2 being held for sale or trade, provided the annual registration
 45  3 fee was not delinquent at the time the vehicle was acquired by
 45  4 the dealer.  When a dealer ceases to hold any vehicle for sale
 45  5 or trade or the vehicle otherwise becomes subject to
 45  6 registration under this chapter the annual registration fee
 45  7 and delinquent annual registration fee, if any, shall be due
 45  8 for the registration year.
 45  9    Sec. 53.  Section 321.101, subsection 1, paragraph d, Code
 45 10 Supplement 2007, is amended to read as follows:
 45 11    d.  When the department determines that the required annual
 45 12 registration fee has not been paid and the fee is not paid
 45 13 upon reasonable notice and demand.
 45 14    Sec. 54.  Section 321.101A, Code 2007, is amended to read
 45 15 as follows:
 45 16    321.101A  REVOCATION OF REGISTRATION BY COUNTY TREASURER.
 45 17    The county treasurer may revoke the registration and
 45 18 registration plates of a vehicle if the annual registration
 45 19 fees are fee or the fee for new registration is paid by check,
 45 20 electronic payment, or credit card and the check, electronic
 45 21 payment, or credit card is not honored by the payer's
 45 22 financial institution or credit card company, upon reasonable
 45 23 notice and demand.  The owner of the vehicle or person in
 45 24 possession of the registration and registration plates for the
 45 25 vehicle shall immediately return the revoked registration and
 45 26 registration plates to the appropriate county treasurer's
 45 27 office.
 45 28    Sec. 55.  Section 321.105, Code 2007, is amended to read as
 45 29 follows:
 45 30    321.105  ANNUAL REGISTRATION FEE REQUIRED.
 45 31    1.  An annual registration fee shall be paid for each
 45 32 vehicle operated upon the public highways of this state unless
 45 33 the vehicle is specifically exempted under this chapter. If a
 45 34 vehicle, which has been registered for the current
 45 35 registration year, is transferred during the registration
 46  1 year, the transferee shall reregister the vehicle as provided
 46  2 in section 321.46.
 46  3    2.  The annual registration fee shall be paid to the county
 46  4 treasurer at the same time the application is made for the
 46  5 registration or reregistration of the motor vehicle or
 46  6 trailer.  An owner may, when applying for registration or
 46  7 reregistration of a motor vehicle or trailer, request that the
 46  8 plates be mailed to the owner's post=office address.  The
 46  9 owner's request shall be accompanied by a mailing fee as
 46 10 determined annually by the director in consultation with the
 46 11 Iowa county treasurers association.
 46 12    3.  Upon application by a financial institution, as defined
 46 13 in section 422.61, and approval of the application by the
 46 14 county treasurer, the county treasurer in any county may
 46 15 authorize the financial institution to receive applications
 46 16 for renewal of vehicle registrations and payment of the annual
 46 17 registration fees.  The annual registration fees shall be
 46 18 delivered to the county treasurer at the time the county
 46 19 treasurer has processed the vehicle registration application.
 46 20 Registration Annual registration fees received with vehicle
 46 21 registration applications shall be designated as public funds
 46 22 only upon receipt of such funds by the county treasurer from
 46 23 the financial institution.
 46 24    4.  In addition to the payment of an annual registration
 46 25 fee for each trailer and semitrailer to be issued an annual
 46 26 registration plate, an additional registration fee may be paid
 46 27 for a period of two or four subsequent registration years.
 46 28    5.  Seriously disabled veterans who have been provided with
 46 29 an automobile or other vehicle by the United States government
 46 30 under the provisions of sections 1901 to 1903, Title 38 of the
 46 31 United States Code, 38 U.S.C. } 1901 et seq. (1970), shall be
 46 32 exempt from payment of any automobile registration fee
 46 33 provided in this chapter, and shall be provided, without fee,
 46 34 with a registration plate.  The disabled veteran, to be able
 46 35 to claim the above benefit, must be a resident of the state of
 47  1 Iowa.  The disabled veteran may obtain a special or
 47  2 personalized plate under section 321.34 by paying the
 47  3 difference between the fee for a regular registration plate
 47  4 and the fee for the special or personalized registration
 47  5 plate.
 47  6    Sec. 56.  Section 321.106, subsections 1, 2, and 4, Code
 47  7 2007, are amended to read as follows:
 47  8    1.  When a vehicle is registered under chapter 326 or a
 47  9 motor truck, truck tractor, or road tractor is registered for
 47 10 a combined gross weight exceeding five tons and there is no
 47 11 delinquency and the registration is made in February or
 47 12 succeeding months through November, the annual registration
 47 13 fee shall be prorated for the remaining unexpired months of
 47 14 the registration year.  A fee shall not be required for the
 47 15 month of December for a vehicle registered on a calendar year
 47 16 basis on which there is no delinquency.  However, except for a
 47 17 vehicle registered under chapter 326, when such a vehicle is
 47 18 registered in November, the vehicle may be registered for the
 47 19 remaining unexpired months of the registration year or for the
 47 20 remaining unexpired months of the registration year and for
 47 21 the next registration year, upon payment of the applicable
 47 22 registration fees.
 47 23    2.  When a vehicle is registered on a birth month basis and
 47 24 there is no delinquency and the registration is made in the
 47 25 month after the beginning of the registration year or
 47 26 succeeding months, the annual registration fee shall be
 47 27 prorated for the remaining unexpired months of the
 47 28 registration year.  A fee shall not be required for the month
 47 29 of the owner's birthday for a vehicle on which there is no
 47 30 delinquency.  However, when a vehicle registered on a birth
 47 31 month basis is registered during the eleventh month of the
 47 32 registration year, the vehicle may be registered for the
 47 33 remaining unexpired months of the registration year or for the
 47 34 remaining unexpired months of the registration year and for
 47 35 the next registration year, upon payment of the applicable
 48  1 registration fees.
 48  2    4.  A reduction in the annual registration fee shall not be
 48  3 allowed by the department until the applicant files
 48  4 satisfactory evidence to prove that there is no delinquency in
 48  5 registration.
 48  6    Sec. 57.  Section 321.109, subsection 3, Code 2007, is
 48  7 amended to read as follows:
 48  8    3.  The owner of an unregistered motor vehicle or motor
 48  9 vehicle for which the registration is delinquent may make
 48 10 application to the county treasurer of the county of residence
 48 11 or, if the unregistered or delinquent motor vehicle is
 48 12 purchased by a nonresident of the state, to the county
 48 13 treasurer in the county of purchase, for a temporary
 48 14 thirty=day permit for a fee of twenty=five dollars.  The
 48 15 permit shall authorize the motor vehicle to be driven or towed
 48 16 upon the highway, but shall not authorize a motor truck or
 48 17 truck tractor to haul or tow a load.  The permit fee shall not
 48 18 be considered a registration fee or exempt the owner from
 48 19 payment of all other fees, registration fees, and penalties
 48 20 due.  If the annual registration fee for the motor vehicle is
 48 21 delinquent, the annual registration fee and penalty shall
 48 22 continue to accrue until paid.  The permit fee shall not be
 48 23 prorated, refunded, or used as credit as provided under
 48 24 section 321.46.  The permit shall be displayed in the upper
 48 25 left=hand corner of the rear window of all motor vehicles,
 48 26 except motorcycles.  Permits issued for a motorcycle shall be
 48 27 attached to the rear of the motorcycle.
 48 28    Sec. 58.  Section 321.110, Code 2007, is amended to read as
 48 29 follows:
 48 30    321.110  REJECTING FRACTIONAL DOLLARS.
 48 31    When the annual registration fee, computed according to
 48 32 section 321.109, subsection 1, totals a fraction over a
 48 33 certain number of dollars the fee shall be arrived at by
 48 34 computing to the nearest even dollar.
 48 35    Sec. 59.  Section 321.113, Code 2007, is amended to read as
 49  1 follows:
 49  2    321.113  AUTOMATIC REDUCTION.
 49  3    1.  The annual registration fee for a motor vehicle shall
 49  4 not be automatically reduced under this section unless the
 49  5 registration fee is based on the value and weight of the motor
 49  6 vehicle as provided in section 321.109, subsection 1.
 49  7    2.  If a motor vehicle is more than five model years old,
 49  8 the part of the annual registration fee that is based on the
 49  9 value of the vehicle shall be seventy=five percent of the rate
 49 10 as fixed when the motor vehicle was new.
 49 11    3.  If a motor vehicle is more than six model years old,
 49 12 the part of the annual registration fee that is based on the
 49 13 value of the vehicle shall be fifty percent of the rate as
 49 14 fixed when the motor vehicle was new.
 49 15    4.  If a 1994 model year or newer motor vehicle is nine
 49 16 model years old or older the annual registration fee is
 49 17 thirty=five dollars.  For purposes of determining the portion
 49 18 of the annual registration fee under this subsection that is
 49 19 based upon the value of the motor vehicle, sixty percent of
 49 20 the annual registration fee is attributable to the value of
 49 21 the vehicle.
 49 22    5.  a.  If a 1993 model year or older motor vehicle has
 49 23 been titled in the same person's name since the vehicle was
 49 24 new or the title to the vehicle was transferred prior to
 49 25 January 1, 2002, the part of the annual registration fee that
 49 26 is based on the value of the vehicle shall be ten percent of
 49 27 the rate as fixed when the motor vehicle was new.
 49 28    b.  If the title of a 1993 model year or older motor
 49 29 vehicle is transferred to a new owner or if such a motor
 49 30 vehicle is brought into the state on or after January 1, 2002,
 49 31 the annual registration fee shall not be based on the weight
 49 32 and list price of the motor vehicle, but shall be as follows:
 49 33    (1)  For a motor vehicle that is model year
 49 34 1969 or older:........................................ $  16.00
 49 35    (2)  For a motor vehicle that is model year
 50  1 1970 through 1989:.................................... $  23.00
 50  2    (3)  For a motor vehicle that is model year
 50  3 1990 through 1993:.................................... $  27.00
 50  4    For purposes of determining the portion of the annual
 50  5 registration fee under this paragraph "b" that is based upon
 50  6 the value of the motor vehicle, sixty percent of the annual
 50  7 registration fee is attributable to the value of the vehicle.
 50  8    Sec. 60.  Section 321.117, Code 2007, is amended to read as
 50  9 follows:
 50 10    321.117  MOTORCYCLE, AMBULANCE, AND HEARSE FEES.
 50 11    For all motorcycles the annual registration fee shall be
 50 12 twenty dollars.  For all motorized bicycles the annual
 50 13 registration fee shall be seven dollars.  When the motorcycle
 50 14 is more than five model years old, the annual registration fee
 50 15 shall be ten dollars.  The annual registration fee for
 50 16 ambulances and hearses shall be fifty dollars.  Passenger car
 50 17 plates shall be issued for ambulances and hearses.
 50 18    Sec. 61.  Section 321.119, Code 2007, is amended to read as
 50 19 follows:
 50 20    321.119  CHURCH BUSES.
 50 21    For motor vehicles designed to carry nine passengers or
 50 22 more which are owned and used exclusively by a church or
 50 23 religious organization to transport passengers to and from
 50 24 activities of or sponsored by the church or religious
 50 25 organization and not operated for rent or hire for purposes
 50 26 unrelated to the activities of the church or religious
 50 27 organization, the annual registration fee shall be twenty=five
 50 28 dollars.
 50 29    Sec. 62.  Section 321.121, Code 2007, is amended to read as
 50 30 follows:
 50 31    321.121  SPECIAL TRUCKS FOR FARM USE.
 50 32    1.  The annual registration fee for a special truck shall
 50 33 be eighty dollars for a gross weight of six tons, one hundred
 50 34 dollars for a gross weight of seven tons, one hundred twenty
 50 35 dollars for a gross weight of eight tons, and in addition,
 51  1 fifteen dollars for each ton over eight tons and not exceeding
 51  2 eighteen tons.  The annual registration fee for a special
 51  3 truck with a gross weight registration exceeding eighteen tons
 51  4 but not exceeding nineteen tons shall be three hundred
 51  5 twenty=five dollars and for a gross weight registration
 51  6 exceeding nineteen tons but not exceeding twenty tons the
 51  7 annual registration fee shall be three hundred seventy=five
 51  8 dollars.  The additional annual registration fee for a special
 51  9 truck for a gross weight registration in excess of twenty tons
 51 10 is twenty=five dollars for each ton over twenty tons and not
 51 11 exceeding thirty=two tons.
 51 12    2.  A person convicted of or found by audit to be using a
 51 13 motor vehicle registered as a special truck for any purpose
 51 14 other than permitted by section 321.1, subsection 76, shall,
 51 15 in addition to any other penalty imposed by law, be required
 51 16 to pay regular annual motor vehicle registration fees upon for
 51 17 such motor vehicle.
 51 18    Sec. 63.  Section 321.123, unnumbered paragraph 1, Code
 51 19 2007, is amended to read as follows:
 51 20    All trailers except farm trailers, mobile homes, and
 51 21 manufactured homes, unless otherwise provided in this section,
 51 22 are subject to a an annual registration fee of ten dollars.
 51 23 Trailers for which the empty weight is two thousand pounds or
 51 24 less are exempt from the certificate of title and lien
 51 25 provisions of this chapter.  Fees collected under this section
 51 26 shall not be reduced or prorated under chapter 326.
 51 27    Sec. 64.  Section 321.123, subsection 1, unnumbered
 51 28 paragraph 1, Code 2007, is amended to read as follows:
 51 29    Travel trailers and fifth=wheel travel trailers, except
 51 30 those in manufacturer's or dealer's stock, shall be subject to
 51 31 an annual registration fee of twenty cents per square foot of
 51 32 floor space computed on the exterior overall measurements, but
 51 33 excluding three feet occupied by any trailer hitch as provided
 51 34 by and certified to by the owner, to the nearest whole dollar.
 51 35 When a travel trailer or fifth=wheel travel trailer is
 52  1 registered in Iowa for the first time or when title is
 52  2 transferred, the annual registration fee shall be prorated on
 52  3 a monthly basis.  The annual registration fee shall be reduced
 52  4 to seventy=five percent of the full fee after the vehicle is
 52  5 more than six model years old.
 52  6    Sec. 65.  Section 321.125, Code 2007, is amended to read as
 52  7 follows:
 52  8    321.125  EFFECT OF EXEMPTION.
 52  9    The exemption of a motor vehicle from a an annual
 52 10 registration fee or a fee for new registration shall not
 52 11 exempt the operator of such vehicle from the performance of
 52 12 any other duty imposed on the operator by this chapter.
 52 13    Sec. 66.  Section 321.126, Code 2007, is amended to read as
 52 14 follows:
 52 15    321.126  REFUNDS OF ANNUAL REGISTRATION FEES.
 52 16    Refunds of unexpired annual vehicle registration fees shall
 52 17 be allowed in accordance with this section, except that no
 52 18 refund shall be allowed and paid if the unused portion of the
 52 19 fee is less than ten dollars.  Subsections 1 and 2 do not
 52 20 apply to vehicles registered by the county treasurer.  The
 52 21 refunds shall be made as follows:
 52 22    1.  If the vehicle is destroyed by fire or accident, or
 52 23 junked and its identity as a vehicle entirely eliminated, the
 52 24 owner in whose name the vehicle was registered at the time of
 52 25 destruction or dismantling shall return the plates to the
 52 26 department and within thirty days thereafter make a statement
 52 27 of such destruction or dismantling and make claim for refund.
 52 28 With reference to the destruction or dismantling of a vehicle,
 52 29 no refund shall be allowed unless a junking certificate has
 52 30 been issued, as provided in section 321.52.
 52 31    2.  If the vehicle is stolen, the owner shall give notice
 52 32 of the theft to the department within five days.  If the
 52 33 vehicle is not recovered by the owner thirty days prior to the
 52 34 end of the current registration year, the owner shall make a
 52 35 statement of the theft and make claim for refund.
 53  1    3.  If the vehicle is placed in storage by the owner upon
 53  2 the owner's entry into the military service of the United
 53  3 States, the owner shall return the plates to the county
 53  4 treasurer or the department and make a statement regarding the
 53  5 storage and military service and make claim for refund.
 53  6 Whenever the owner of a vehicle so placed in storage desires
 53  7 to again register the vehicle, the county treasurer or
 53  8 department shall compute and collect the fees for registration
 53  9 for the registration year commencing in the month the vehicle
 53 10 is removed from storage.
 53 11    4.  If the vehicle is registered by the county treasurer
 53 12 during the current registration year and the owner or lessee
 53 13 registers the vehicle for proportional registration under
 53 14 chapter 326, the owner of the registered vehicle shall
 53 15 surrender the registration plates to the county treasurer and
 53 16 may file a claim for refund.  In lieu of a refund, a credit
 53 17 for the annual registration fees paid to the county treasurer
 53 18 may be applied by the department to the owner or lessee's
 53 19 proportional registration fees upon the surrender of the
 53 20 county plates and registration.
 53 21    5.  A refund for trailers and semitrailers issued a
 53 22 multiyear registration plate shall be paid by the department
 53 23 upon application.
 53 24    6.  If a vehicle is sold or junked, the owner in whose name
 53 25 the vehicle was registered may make claim to the county
 53 26 treasurer or department for a refund of the sold or junked
 53 27 vehicle's annual registration fee.  Also if the owner of a
 53 28 vehicle receives a vehicle registration fee credit under
 53 29 section 321.46, subsection 3, and the credit allowed exceeds
 53 30 the amount of the annual registration fee for the vehicle
 53 31 acquired, the owner may claim a refund for the balance of the
 53 32 credit.  The refund is subject to the following limitations:
 53 33    a.  If a vehicle registration fee credit has not been
 53 34 received by the owner of the vehicle under section 321.46,
 53 35 subsection 3, the refund shall be computed on the basis of the
 54  1 number of unexpired months remaining in the registration year
 54  2 at the time the vehicle was sold or junked.  The refund shall
 54  3 be rounded to the nearest whole dollar.  Section 321.127,
 54  4 subsection 1, does not apply.
 54  5    b.  The refund shall only be allowed if the owner makes
 54  6 claim for the refund within six months after the date of the
 54  7 vehicle's sale, trade, or junking.
 54  8    c.  This subsection does not apply to vehicles registered
 54  9 under chapter 326.
 54 10    7.  If the vehicle was leased and an affidavit was filed by
 54 11 the lessor or the lessee as provided in section 321.46, the
 54 12 lessor or the lessee, as applicable, may make a claim for a
 54 13 refund with the county treasurer of the county where the
 54 14 vehicle was registered within six months of the vehicle's
 54 15 surrender to the lessor.  The refund shall be paid to either
 54 16 the lessor or the lessee, as specified on the application for
 54 17 title and registration pursuant to section 321.20.
 54 18    8.  If the owner of the vehicle moves out of state, the
 54 19 owner may make a claim for a refund by returning the Iowa
 54 20 registration plates, along with evidence of the vehicle's
 54 21 registration in another jurisdiction, to the county treasurer
 54 22 of the county in which the vehicle was registered within six
 54 23 months of the out=of=state registration.  For purposes of
 54 24 section 321.127, the unexpired months remaining in the
 54 25 registration year shall be calculated on the basis of the
 54 26 effective date of the out=of=state registration.  However, for
 54 27 the purpose of timely issuance of the refund, the claim for a
 54 28 refund under this subsection is considered to be filed on the
 54 29 date the registration documents are received by the county
 54 30 treasurer.
 54 31    9.  Notwithstanding any provision of this section to the
 54 32 contrary, there shall be no refund of proportional
 54 33 registration fees unless the state which issued the base plate
 54 34 for the vehicle allows such refund.  If an owner subject to
 54 35 proportional registration leases the vehicle for which the
 55  1 refund is sought, the claim shall be filed in the names of
 55  2 both the lessee and the lessor and the refund payment made
 55  3 payable to both the lessor and the lessee.  The term "owner"
 55  4 for purposes of this section shall include a person in whom is
 55  5 vested right of possession or control of a vehicle which is
 55  6 subject to a lease, contract, or other legal arrangement
 55  7 vesting right of possession or control in addition to the term
 55  8 as defined in section 321.1, subsection 49.
 55  9    Sec. 67.  Section 321.127, subsection 1, Code 2007, is
 55 10 amended to read as follows:
 55 11    1.  The refund of the annual registration fee for vehicles
 55 12 shall be computed on the basis of the number of unexpired
 55 13 months remaining in the registration year from date of filing
 55 14 of the claim for refund with the county treasurer, computed to
 55 15 the nearest dollar.
 55 16    Sec. 68.  Section 321.132, Code 2007, is amended to read as
 55 17 follows:
 55 18    321.132  WHEN LIEN ATTACHES.
 55 19    The lien of the original annual registration fee attaches,
 55 20 at the time the fee is first payable, as provided by law, and
 55 21 the lien of all renewals of registration attach on the first
 55 22 day of each succeeding registration year.
 55 23    Sec. 69.  Section 321.134, Code Supplement 2007, is amended
 55 24 to read as follows:
 55 25    321.134  MONTHLY PENALTY.
 55 26    1.  On the first day of the second month following the
 55 27 beginning of each registration year a penalty of five percent
 55 28 of the annual registration fee shall be added to the annual
 55 29 registration fees not paid by that date and an additional
 55 30 penalty of five percent shall be added the first day of each
 55 31 succeeding month, until the fee is paid.  A penalty shall not
 55 32 be less than five dollars.  If the owner of a vehicle
 55 33 surrenders the registration plates for a vehicle prior to the
 55 34 plates becoming delinquent, to the county treasurer of the
 55 35 county where the vehicle is registered, or to the department
 56  1 if the vehicle is registered under chapter 326, the owner may
 56  2 register the vehicle any time thereafter upon payment of the
 56  3 annual registration fee for the registration year without
 56  4 penalty.  The penalty on vehicles registered under chapter 326
 56  5 shall accrue February 1 of each year.  To avoid a penalty or
 56  6 an additional penalty in the case of a delinquent
 56  7 registration, if the last calendar day of a month falls on
 56  8 Saturday, Sunday, or a holiday, the payment deadline is
 56  9 extended to include the first business day of the following
 56 10 month.  For payments made through a county treasurer's
 56 11 authorized website only, if the last day of the month falls on
 56 12 a Saturday, Sunday, or a holiday, the electronic payment must
 56 13 be initiated by midnight on the first business day of the next
 56 14 month.  All other electronic payments must be initiated by
 56 15 midnight on the last day of the month preceding the delinquent
 56 16 date.
 56 17    2.  The annual registration fee for trucks, truck tractors,
 56 18 and road tractors, as provided in sections 321.121 and
 56 19 321.122, may be payable in two equal semiannual installments
 56 20 if the annual registration fee exceeds the annual registration
 56 21 fee for a vehicle with a gross weight exceeding five tons.
 56 22 The penalties provided in subsection 1 shall be computed on
 56 23 the amount of the first installment only and on the first day
 56 24 of the seventh month of the registration period the same rate
 56 25 of penalty shall apply to the second installment, until the
 56 26 fee is paid.  Semiannual installments do not apply to
 56 27 commercial vehicles, as defined under section 326.2, subject
 56 28 to proportional registration, with a base state other than the
 56 29 state of Iowa, as defined in section 326.2, subsection 1.  The
 56 30 penalty on vehicles registered under chapter 326 accrues
 56 31 August 1 of each year except as provided in section 326.6.
 56 32 The department shall not allow the annual registration fee for
 56 33 a commercial vehicle registered under chapter 326 to be paid
 56 34 in two equal semiannual installments for five years after the
 56 35 registrant has paid the annual registration fee late for two
 57  1 consecutive years.
 57  2    3.  If a penalty applies to a an annual vehicle
 57  3 registration fee provided for in sections 321.121 and 321.122,
 57  4 the same penalty shall be assessed on the fees collected to
 57  5 increase the registered gross weight of the vehicle, if the
 57  6 increased gross weight is requested within forty=five days
 57  7 from the date the delinquent vehicle is registered for the
 57  8 current registration period.
 57  9    4.  Notwithstanding subsections 1 through 3, if a vehicle
 57 10 registration is delinquent for twenty=four months or more, a
 57 11 flat penalty and fee shall be assessed for the delinquent
 57 12 period in addition to the current annual registration fee.
 57 13 The flat penalty and fee shall be one hundred fifty percent of
 57 14 the current annual registration fee.
 57 15    5.  The department shall waive the penalties imposed by
 57 16 this section for an owner who is in the military service of
 57 17 the United States and who has been relocated as a result of
 57 18 being placed on active duty on or after September 11, 2001.
 57 19 The department shall adopt rules to implement this subsection,
 57 20 including, if necessary, procedures for refunding penalties
 57 21 collected prior to March 29, 2004.
 57 22    Sec. 70.  Section 321.135, Code 2007, is amended to read as
 57 23 follows:
 57 24    321.135  WHEN FEES DELINQUENT.
 57 25    Except as otherwise provided, delinquencies begin annual
 57 26 registration fees become delinquent and penalties accrue the
 57 27 first of the month following the purchase of a new vehicle,
 57 28 and thirty days following the date a vehicle is brought into
 57 29 the state.
 57 30    Sec. 71.  Section 321.151, Code 2007, is amended to read as
 57 31 follows:
 57 32    321.151  DUTY AND LIABILITY OF TREASURER.
 57 33    The county treasurer shall collect the registration fee,
 57 34 the fee for new registration, and penalties on each vehicle
 57 35 registered by the county treasurer and shall be responsible on
 58  1 the county treasurer's bond for such amount.  The county
 58  2 treasurer shall remit such amount to the treasurer of state as
 58  3 provided in this chapter.  Fees collected pursuant to
 58  4 participation in county issuance of driver's licenses under
 58  5 chapter 321M shall be governed by the provisions of that
 58  6 chapter.
 58  7    Sec. 72.  Section 321.152, subsection 1, Code 2007, is
 58  8 amended to read as follows:
 58  9    1.  Four percent of the total collection, excluding the
 58 10 amount of any fee for new registration, for each annual or
 58 11 semiannual vehicle registration and each duplicate
 58 12 registration card or plate issued.
 58 13    Sec. 73.  Section 321.152, Code 2007, is amended by adding
 58 14 the following new subsection:
 58 15    NEW SUBSECTION.  5.  One dollar from each fee for new
 58 16 registration collected pursuant to section 321.105A.
 58 17    Sec. 74.  Section 321.159, Code 2007, is amended to read as
 58 18 follows:
 58 19    321.159  EXCEPTIONAL CASES == ANNUAL REGISTRATION FEE.
 58 20    The department shall have the power to fix the annual
 58 21 registration fee on all makes and models of motor vehicles
 58 22 which are not now being furnished or upon which the statement
 58 23 from the factory cannot be obtained.
 58 24    For a current year model of a motor vehicle for which the
 58 25 manufacturer or importer of the motor vehicle has not provided
 58 26 the weight and list price, the department shall set the annual
 58 27 registration fee at ten dollars greater than the annual
 58 28 registration fee for the previous year model.  Once the
 58 29 manufacturer or importer provides the required information,
 58 30 the information shall be used to set the annual registration
 58 31 fee or the registration renewal fee for the succeeding
 58 32 registration or registration renewal time for the motor
 58 33 vehicle.
 58 34    Sec. 75.  Section 321.170, Code 2007, is amended to read as
 58 35 follows:
 59  1    321.170  PLATES FOR EXEMPT VEHICLES.
 59  2    The department shall furnish, on application, free of
 59  3 charge, distinguishing plates for motor vehicles exempted from
 59  4 a annual registration fee fees and shall keep a separate
 59  5 record thereof.
 59  6    Sec. 76.  Section 322G.4, subsection 2, unnumbered
 59  7 paragraph 2, Code 2007, is amended to read as follows:
 59  8    Refunds shall be made to the consumer and lienholder of
 59  9 record, if any, as their interests appear.  If applicable,
 59 10 refunds shall be made to the lessor and lessee as follows:
 59 11 the lessee shall receive the lessee's cost less a reasonable
 59 12 offset for use, and the lessor shall receive the lease price
 59 13 less the aggregate deposit and rental payments previously paid
 59 14 to the lessor for the leased vehicle.  If it is determined
 59 15 that the lessee is entitled to a refund pursuant to this
 59 16 chapter, the consumer's lease agreement with the lessor is
 59 17 terminated upon payment of the refund and no penalty for early
 59 18 termination shall be assessed.  The department of revenue
 59 19 shall refund to the manufacturer any use tax or fee for new
 59 20 registration which the manufacturer refunded to the consumer,
 59 21 lessee, or lessor under this section, if the manufacturer
 59 22 provides to the department of revenue a written request for a
 59 23 refund and evidence that the use tax or fee for new
 59 24 registration was paid when the vehicle was purchased and that
 59 25 the manufacturer refunded the use tax or fee for new
 59 26 registration to the consumer, lessee, or lessor.
 59 27    Sec. 77.  Section 322G.12, unnumbered paragraph 1, Code
 59 28 2007, is amended to read as follows:
 59 29    A manufacturer who accepts the return of a motor vehicle
 59 30 pursuant to a settlement, determination, or decision under
 59 31 this chapter shall notify the state department of
 59 32 transportation, report the vehicle identification number of
 59 33 that motor vehicle within ten days after the acceptance, and
 59 34 obtain a new certificate of title for the vehicle in the
 59 35 manufacturer's name pursuant to section 321.46.  In obtaining
 60  1 a new certificate of title, the manufacturer shall title the
 60  2 vehicle in the county of the transferor's residence and shall
 60  3 be exempt from the registration fee requirements of section
 60  4 321.46.  For purposes of chapter 423, a manufacturer's
 60  5 acceptance of the return of a motor vehicle, as described in
 60  6 this section, shall not be considered "use", as defined in
 60  7 section 423.1 and the fee for new registration under section
 60  8 321.105A.  The new certificate of title, and all subsequent
 60  9 registration receipts and certificates of title issued for the
 60 10 motor vehicle, shall contain a designation indicating that the
 60 11 motor vehicle was returned to the manufacturer pursuant to
 60 12 this chapter or a similar law of another state.  The state
 60 13 department of transportation shall determine the manner in
 60 14 which the designation is to be indicated on registration
 60 15 receipts and certificates of title and may determine that a
 60 16 "REBUILT" or "SALVAGE" designation supersedes the designation
 60 17 required by this paragraph and include the "REBUILT" or
 60 18 "SALVAGE" designation on the registration receipt and
 60 19 certificate of title in lieu of the designation required by
 60 20 this paragraph.
 60 21    Sec. 78.  Section 326.2, Code 2007, is amended by adding
 60 22 the following new subsection:
 60 23    NEW SUBSECTION.  11A.  "Registration fee" means the annual
 60 24 motor vehicle registration fee imposed pursuant to section
 60 25 321.105, unless otherwise specified.
 60 26    Sec. 79.  Section 327I.26, Code 2007, is amended to read as
 60 27 follows:
 60 28    327I.26  APPROPRIATION TO AUTHORITY.
 60 29    Notwithstanding section 423.43, and prior to the
 60 30 application of section 423.43, subsection 1 2, paragraph "b",
 60 31 there shall be deposited into the general fund of the state
 60 32 and is appropriated to the authority from eighty percent of
 60 33 the revenues derived from the operation of section 423.26, the
 60 34 amounts certified by the authority under section 327I.25.
 60 35 However, the total amount deposited into the general fund and
 61  1 appropriated to the Iowa railway finance authority under this
 61  2 section shall not exceed two million dollars annually.  Moneys
 61  3 appropriated to the Iowa railway finance authority under this
 61  4 section are appropriated only for the payment of principal and
 61  5 interest on obligations or the payment of leases guaranteed by
 61  6 the authority as provided under section 327I.25.
 61  7    Sec. 80.  Section 331.557, subsection 3, Code 2007, is
 61  8 amended to read as follows:
 61  9    3.  Collect the use tax on vehicles subject to registration
 61 10 only to a certificate of title and on manufactured housing as
 61 11 provided in sections section 423.14, and section 423.26, and
 61 12 423.27, subsection 1.
 61 13    Sec. 81.  Section 423.5, subsection 3, Code 2007, is
 61 14 amended to read as follows:
 61 15    3.  The use of leased vehicles, if the lease transaction
 61 16 does not require titling or registration of the vehicle, on
 61 17 the amount subject to tax as calculated pursuant to section
 61 18 423.27 423.26, subsection 2.
 61 19    Sec. 82.  Section 423.36, subsection 8, paragraph b,
 61 20 subparagraph (2), Code 2007, is amended to read as follows:
 61 21    (2)  Taxes imposed under sections section 423.26 and 423.27
 61 22 and chapter 423C.
 61 23    Sec. 83.  Section 423.57, Code Supplement 2007, is amended
 61 24 to read as follows:
 61 25    423.57  STATUTES APPLICABLE.
 61 26    The director shall administer this subchapter as it relates
 61 27 to the taxes imposed in this chapter in the same manner and
 61 28 subject to all the provisions of, and all of the powers,
 61 29 duties, authority, and restrictions contained in sections
 61 30 423.14, 423.15, 423.16, 423.17, 423.19, 423.20, 423.21,
 61 31 423.22, 423.23, 423.24, 423.25, 423.28, 423.29, 423.31,
 61 32 423.32, 423.33, 423.34, 423.35, 423.37, 423.38, 423.39,
 61 33 423.40, 423.41, and 423.42, section 423.43, subsection 3 1,
 61 34 and sections 423.45, 423.46, and 423.47.
 61 35    Sec. 84.  Section 423B.4, unnumbered paragraphs 2 and 3,
 62  1 Code 2007, are amended to read as follows:
 62  2    Payment of a local vehicle tax shall be evidenced by a
 62  3 notation on the state registration certificate.  The director
 62  4 of the department of transportation shall prescribe by rule
 62  5 the type of notation.  A local vehicle tax shall not be
 62  6 refunded even when annual state registration fees are
 62  7 refunded.
 62  8    Penalties for late payment which are comparable to the
 62  9 penalties for late payment of annual state registration fees
 62 10 shall be imposed by the ordinance imposing a local vehicle
 62 11 tax.  Willful violation of a local vehicle tax ordinance is a
 62 12 simple misdemeanor.
 62 13    Sec. 85.  Section 455D.11C, subsection 1, Code 2007, is
 62 14 amended to read as follows:
 62 15    1.  A waste tire management fund is created within the
 62 16 state treasury.  Moneys For the fiscal year beginning July 1,
 62 17 2002, through the fiscal year beginning July 1, 2006, moneys
 62 18 received from each five dollar surcharge on the issuance of a
 62 19 certificate of title shall be deposited as provided in section
 62 20 321.52A, subsection 2 Code 2007.  Notwithstanding section
 62 21 8.33, any unexpended balance in the fund at the end of each
 62 22 fiscal year shall be retained in the fund.  Notwithstanding
 62 23 section 12C.7, any interest or earnings on investments from
 62 24 moneys in the fund shall be credited to the fund.  Moneys from
 62 25 the fund that are expended by the department in closing or
 62 26 bringing into compliance a waste tire collection site pursuant
 62 27 to section 455D.11A and later recouped by the department shall
 62 28 be credited to the fund.
 62 29    Sec. 86.  Section 455G.3, subsection 1, Code 2007, is
 62 30 amended to read as follows:
 62 31    1.  The Iowa comprehensive petroleum underground storage
 62 32 tank fund is created as a separate fund in the state treasury,
 62 33 and any funds remaining in the fund at the end of each fiscal
 62 34 year shall not revert to the general fund but shall remain in
 62 35 the Iowa comprehensive petroleum underground storage tank
 63  1 fund.  Interest or other income earned by the fund shall be
 63  2 deposited in the fund.  The fund shall include moneys credited
 63  3 to the fund under this section, section 423.43 424.7,
 63  4 subsection 1 4, paragraph "a", and sections 455G.8, 455G.9,
 63  5 and 455G.11, Code 2003, and other funds which by law may be
 63  6 credited to the fund.  The moneys in the fund are appropriated
 63  7 to and for the purposes of the board as provided in this
 63  8 chapter.  Amounts in the fund shall not be subject to
 63  9 appropriation for any other purpose by the general assembly,
 63 10 but shall be used only for the purposes set forth in this
 63 11 chapter.  The treasurer of state shall act as custodian of the
 63 12 fund and disburse amounts contained in it as directed by the
 63 13 board including automatic disbursements of funds as received
 63 14 pursuant to the terms of bond indentures and documents and
 63 15 security provisions to trustees and custodians.  The treasurer
 63 16 of state is authorized to invest the funds deposited in the
 63 17 fund at the direction of the board and subject to any
 63 18 limitations contained in any applicable bond proceedings.  The
 63 19 income from such investment shall be credited to and deposited
 63 20 in the fund.  The fund shall be administered by the board
 63 21 which shall make expenditures from the fund consistent with
 63 22 the purposes of the programs set out in this chapter without
 63 23 further appropriation.  The fund may be divided into different
 63 24 accounts with different depositories as determined by the
 63 25 board and to fulfill the purposes of this chapter.
 63 26    Sec. 87.  Section 455G.6, subsection 4, Code 2007, is
 63 27 amended to read as follows:
 63 28    4.  Grant a mortgage, lien, pledge, assignment, or other
 63 29 encumbrance on one or more improvements, revenues, asset of
 63 30 right, accounts, or funds established or received in
 63 31 connection with the fund, including revenues derived from the
 63 32 use tax environmental protection charge under section 423.43
 63 33 424.7, subsection 1 4, paragraph "a", and deposited in the
 63 34 fund or an account of the fund.
 63 35    Sec. 88.  Section 455G.8, subsection 2, Code 2007, is
 64  1 amended to read as follows:
 64  2    2.  USE TAX ENVIRONMENTAL PROTECTION CHARGE.  The revenues
 64  3 derived from the use tax environmental protection charge
 64  4 imposed under chapter 423, subchapter III 424.  The proceeds
 64  5 of the use tax environmental protection charge under section
 64  6 423.43 424.7, subsection 1 4, paragraph "a", shall be
 64  7 allocated, consistent with this chapter, among the fund's
 64  8 accounts, for debt service and other fund expenses, according
 64  9 to the fund budget, resolution, trust agreement, or other
 64 10 instrument prepared or entered into by the board or authority
 64 11 under direction of the board.
 64 12    Sec. 89.  Section 321.115, subsection 1, as enacted by 2007
 64 13 Iowa Acts, chapter 143, section 12, is amended to read as
 64 14 follows:
 64 15    1.  A motor vehicle twenty=five years old or older may be
 64 16 registered as an antique vehicle upon payment of.  The annual
 64 17 registration fee is the fee provided for in section 321.113,
 64 18 321.122, or 321.124.  The owner of a motor vehicle registered
 64 19 under this subsection may display authentic Iowa registration
 64 20 plates from the model year of the motor vehicle, furnished by
 64 21 the person and approved by the department, in lieu of the
 64 22 current and valid Iowa registration plates issued for the
 64 23 vehicle, provided that the current and valid Iowa registration
 64 24 plates and the registration card issued for the vehicle are
 64 25 simultaneously carried within the vehicle and are available
 64 26 for inspection to any peace officer upon the officer's
 64 27 request.
 64 28    Sec. 90.  2007 Iowa Acts, chapter 179, section 6, is
 64 29 amended to read as follows:
 64 30    SEC. 6.  Section 423.57, Code 2007, as amended by this Act,
 64 31 is amended to read as follows:
 64 32    423.57  STATUTES APPLICABLE.
 64 33    The director shall administer this subchapter as it relates
 64 34 to the taxes imposed in this chapter in the same manner and
 64 35 subject to all the provisions of, and all of the powers,
 65  1 duties, authority, and restrictions contained in sections
 65  2 423.14, 423.15, 423.16, 423.17, 423.19, 423.20, 423.21,
 65  3 423.22, 423.23, 423.24, 423.25, 423.28, 423.29, 423.31,
 65  4 423.32, 423.33, 423.34, 423.34A, 423.35, 423.37, 423.38,
 65  5 423.39, 423.40, 423.41, and 423.42, section 423.43, subsection
 65  6 3 1, and sections 423.45, 423.46, and 423.47.
 65  7    Sec. 91.  Section 423.44, Code 2007, is repealed.
 65  8    Sec. 92.  PRIOR USE TAX LIABILITY.  The enactment of this
 65  9 Act does not affect a person's liability for any use tax,
 65 10 penalty, or interest owed by the person prior to the effective
 65 11 date of this Act.
 65 12    Sec. 93.  EFFECTIVE DATE.  The section of this Act amending
 65 13 2007 Iowa Acts, chapter 179, takes effect January 1, 2009.
 65 14                           EXPLANATION
 65 15    This bill eliminates the imposition of the use tax on motor
 65 16 vehicles subject to registration and the use tax on leased
 65 17 motor vehicles, provides alternate sources of revenue for
 65 18 purposes currently funded from revenues derived from the motor
 65 19 vehicle use tax, and establishes a one=time motor vehicle
 65 20 registration fee called the "fee for new registration".
 65 21    DIVISION I == Currently, there are several purposes for
 65 22 which motor vehicle use taxes are allocated which are not
 65 23 eligible under Iowa's constitution for funding from motor
 65 24 vehicle registration fees.  The bill addresses those funding
 65 25 needs as follows:
 65 26    1.  Prior to allocation from the road use tax fund, an
 65 27 amount equal to 20 percent of the revenue collected from the
 65 28 fee for new registration is to be credited one=half to the
 65 29 road use tax fund and one=half to the primary road fund to be
 65 30 used for the commercial and industrial highway network.
 65 31    2.  An amount equal to 1/20 of 80 percent of the revenue
 65 32 collected from the fee for new registration is to be credited
 65 33 for purposes of public transit assistance from revenues
 65 34 derived from driver's license fees, title fees, and title fee
 65 35 surcharges.
 66  1    3.  An amount equal to $1 per year of license validity for
 66  2 each issued or renewed driver's license valid for the
 66  3 operation of a motorcycle shall be credited to the motorcycle
 66  4 rider education fund from revenues derived from driver's
 66  5 license fees, title fees, and title fee surcharges.
 66  6    4.  Amounts required to be transferred from the sale of
 66  7 special motor vehicle registration plates for the various
 66  8 purposes associated with those plates are to be credited from
 66  9 revenues derived from driver's license fees, title fees, and
 66 10 title fee surcharges.
 66 11    5.  Amounts required for certain projects on bridges over
 66 12 rivers bordering the state, which are not eligible for funding
 66 13 from the road use tax fund, may be credited to the primary
 66 14 road fund from funds derived from trailer registration fees.
 66 15    The bill provides that revenues from the automobile rental
 66 16 excise tax may be used to supplement the funding available to
 66 17 meet the statutory requirements for public transit assistance,
 66 18 the motorcycle rider education fund, and purposes of special
 66 19 registration plates.
 66 20    DIVISION II == The bill establishes a new vehicle
 66 21 registration fee, referred to as the "fee for new
 66 22 registration", which amounts to 5 percent of the purchase
 66 23 price of a vehicle subject to registration, or 5 percent of
 66 24 the leased price for each vehicle subject to registration with
 66 25 a gross vehicle weight rating of less than 16,000 pounds,
 66 26 excluding motorcycles and motorized bicycles, which is leased
 66 27 for 12 months or more.  The imposition of the fee for new
 66 28 registration is subject to the same exemptions currently
 66 29 applicable to the use tax on vehicles.  The bill provides that
 66 30 the computation of a vehicle's purchase price for purposes of
 66 31 the fee for new registration mirrors the computation of "sales
 66 32 price" under current use tax provisions.  The director of
 66 33 revenue, in consultation with the department of
 66 34 transportation, shall administer and enforce the fee for new
 66 35 registration as nearly as possible in conjunction with the
 67  1 administration and enforcement of the use tax law.
 67  2    The fee for new registration is payable to the county
 67  3 treasurer at the time application is made for a new
 67  4 registration for a vehicle.  As is currently the case with the
 67  5 vehicle use tax, the county treasurer shall retain $1 from the
 67  6 collection of a fee for new registration, to be deposited in
 67  7 the county general fund.  The bill provides a mechanism for
 67  8 collection of the fee by licensed vehicle dealers at the time
 67  9 a vehicle is purchased and provisions for obtaining a refund
 67 10 of a fee.  The bill provides that a person who makes a false
 67 11 statement regarding the purchase price of a vehicle commits a
 67 12 fraudulent practice and is subject to the same penalties that
 67 13 applied for purposes of the use tax on vehicles.
 67 14    DIVISION III == The bill repeals the use tax on vehicles
 67 15 subject to registration and the motor vehicle lease tax,
 67 16 except for the tax on the use of leased vehicles if the lease
 67 17 transaction does not require titling and registration of the
 67 18 vehicle.  The use tax on vehicles subject only to a
 67 19 certificate of title, which applies to mobile homes, and on
 67 20 manufactured homes is retained under the bill.  The resulting
 67 21 revenue is deposited into the road use tax fund.
 67 22    DIVISION IV == The bill contains conforming amendments to
 67 23 the Code relating to provisions in the bill.
 67 24 LSB 5396YC 82
 67 25 dea/nh/14