Senate File 495 - Introduced SENATE FILE 495 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 423) (SUCCESSOR TO SF 354) A BILL FOR An Act relating to certificates of title and fees for new 1 registration of motor vehicles. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2420SZ (2) 86 ns/nh

S.F. 495 Section 1. Section 321.24, subsection 1, Code 2015, is 1 amended to read as follows: 2 1. Upon receipt of the application for title and payment of 3 the required fees for a motor vehicle, trailer, or semitrailer, 4 the county treasurer or the department shall, when satisfied 5 as to the application’s genuineness and regularity, and, in 6 the case of a mobile home or manufactured home, that taxes 7 are not owing under chapter 423 or 435 , issue a certificate 8 of title and, except for a mobile home or manufactured home, 9 a registration receipt, and shall file the application, the 10 manufacturer’s or importer’s certificate, the certificate of 11 title, or other evidence of ownership, as prescribed by the 12 department. The registration receipt shall be delivered to the 13 owner and shall contain upon its face the date issued, the name 14 and address of the owner, the registration number assigned to 15 the vehicle, the amount of the fee paid, the type of fuel used, 16 a description of the vehicle as determined by the department, 17 and a form for notice of transfer of the vehicle. The name 18 and address of any lessee of the vehicle shall not be printed 19 on the registration receipt or certificate of title. Up to 20 three owners may be listed on the registration receipt and 21 certificate of title. The certificate of title shall contain 22 a provision stating the following: “NOTICE: Pursuant to the 23 Iowa Code, under-reporting the purchase price of a vehicle may 24 be punishable by a prison sentence, a fine, or both.” 25 Sec. 2. Section 321.105A, subsection 2, paragraph c, 26 subparagraph (17), Code 2015, is amended by striking the 27 subparagraph and inserting in lieu thereof the following: 28 (17) Vehicles titled under a salvage certificate of 29 title. However, when such a vehicle has been repaired and 30 a regular certificate of title is applied for, the fee for 31 new registration is due. If the regular certificate of title 32 is applied for by the owner of the vehicle who owned the 33 vehicle at the time the vehicle was repaired, the fee for new 34 registration shall be equal to five percent of the purchase 35 -1- LSB 2420SZ (2) 86 ns/nh 1/ 3

S.F. 495 price of the vehicle. If the regular certificate of title 1 is applied for by the owner of the vehicle who purchased the 2 vehicle from another person after the vehicle was repaired, 3 whether it was the first or a subsequent purchase of the 4 vehicle after the vehicle was repaired, and the owner of the 5 vehicle is not licensed as a motor vehicle dealer, the fee for 6 new registration shall be equal to three and one-fourth percent 7 of the purchase price of the vehicle. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill provides that certificates of title for motor 12 vehicles shall contain a provision stating “NOTICE: Pursuant to 13 the Iowa Code, under-reporting the purchase price of a vehicle 14 may be punishable by a prison sentence, a fine, or both.” 15 Current law provides that a vehicle titled under a 16 salvage certificate of title is exempt from the fee for new 17 registration until the vehicle is repaired and a regular 18 certificate of title is applied for. If the owner of the 19 vehicle is a licensed recycler, but not licensed as a vehicle 20 dealer, the fee for new registration is 5 percent of the fair 21 market value of the vehicle, with deductions allowed for the 22 cost of parts, supplies, and equipment for which sales tax 23 was paid and which were used to rebuild the vehicle. If the 24 owner is a person who is not licensed as a recycler or vehicle 25 dealer, the fee for new registration is 5 percent of the fair 26 market value of the vehicle, with deductions allowed for the 27 cost of parts, frames, chassis, auto bodies, or supplies that 28 were purchased to rebuild the vehicle and for which sales tax 29 was paid. 30 The bill strikes these provisions but continues to provide 31 that a vehicle titled under a salvage certificate of title is 32 exempt from the fee for new registration until the vehicle is 33 repaired and a regular certificate of title is applied for. 34 The bill provides that if the regular certificate of title 35 -2- LSB 2420SZ (2) 86 ns/nh 2/ 3

S.F. 495 is applied for by the owner who repaired the vehicle, the fee 1 for new registration is 5 percent of the purchase price of the 2 vehicle. If the regular certificate of title is applied for 3 by an owner who purchased the vehicle after the vehicle was 4 repaired, whether it was the first or a subsequent purchase of 5 the vehicle after the vehicle was repaired, and the owner of 6 the vehicle is not licensed as a motor vehicle dealer, the fee 7 for new registration is 3.25 percent of the purchase price of 8 the vehicle. 9 -3- LSB 2420SZ (2) 86 ns/nh 3/ 3