Senate File 354 - Introduced SENATE FILE 354 BY SCHOENJAHN A BILL FOR An Act relating to the fee for new registration for repaired 1 salvage vehicles. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2420SS (2) 86 ns/nh

S.F. 354 Section 1. Section 321.105A, subsection 2, paragraph c, 1 subparagraph (17), Code 2015, is amended by striking the 2 subparagraph and inserting in lieu thereof the following: 3 (17) Vehicles titled under a salvage certificate of 4 title. However, when such a vehicle has been repaired and 5 a regular certificate of title is applied for, the fee for 6 new registration is due. If the owner of the vehicle is 7 not licensed as a motor vehicle dealer, the fee for new 8 registration shall be equal to two percent of the value of 9 the vehicle as determined by the department, with deductions 10 allowed for the cost of parts, supplies, and equipment for 11 which sales tax was paid and which were used to rebuild 12 the vehicle. The department shall adopt rules to determine 13 how such deductions shall be documented. The fee for new 14 registration pursuant to this subparagraph (17) shall be 15 automatically reduced in the following amounts, as applicable: 16 (a) If the motor vehicle is seven model years old or older, 17 but newer than nine model years old, one-fourth of one percent 18 of the value of the vehicle as determined by the department. 19 (b) If the motor vehicle is nine model years old or older, 20 but newer than twelve model years old, three-fourths of one 21 percent of the value of the vehicle as determined by the 22 department. 23 (c) If the motor vehicle is twelve model years old or 24 older, one and one-half percent of the value of the vehicle as 25 determined by the department. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 Current law provides that a vehicle titled under a 30 salvage certificate of title is exempt from the fee for new 31 registration until the vehicle is repaired and a regular 32 certificate of title is applied for. If the owner of the 33 vehicle is a licensed recycler, but not licensed as a vehicle 34 dealer, the fee for new registration applies based on the fair 35 -1- LSB 2420SS (2) 86 ns/nh 1/ 2

S.F. 354 market value of the vehicle, with deduction allowed for the 1 cost of parts, supplies, and equipment for which sales tax 2 was paid and which were used to rebuild the vehicle. If the 3 owner is a person who is not licensed as a recycler or vehicle 4 dealer, the fee for new registration applies based on the fair 5 market value of the vehicle, with deduction allowed for the 6 cost of parts, frames, chassis, auto bodies, or supplies that 7 were purchased to rebuild the vehicle and for which sales tax 8 was paid. 9 The bill strikes these provisions but continues to provide 10 that a vehicle titled under a salvage certificate of title is 11 exempt from the fee for new registration until the vehicle is 12 repaired and a regular certificate of title is applied for. 13 The bill provides that if the owner of the vehicle is 14 not licensed as a motor vehicle dealer, the fee for new 15 registration shall be equal to 2 percent of the value of 16 the vehicle as determined by the department, with deductions 17 allowed for the cost of parts, supplies, and equipment for 18 which sales tax was paid and which were used to rebuild 19 the vehicle. The bill provides that the department of 20 transportation shall adopt rules to determine how such 21 deductions shall be documented. 22 The bill provides that the fee for new registration shall be 23 automatically reduced in certain circumstances. If the motor 24 vehicle is seven model years old or older, but newer than nine 25 model years old, the fee for new registration is reduced 0.25 26 percent of the value of the vehicle. If the motor vehicle is 27 nine model years old or older, but newer than 12 model years 28 old, the fee for new registration is reduced 0.75 percent of 29 the value of the vehicle. If the motor vehicle is 12 model 30 years old or older, the fee for new registration is reduced 1.5 31 percent of the value of the vehicle. 32 -2- LSB 2420SS (2) 86 ns/nh 2/ 2