House File 2050 - Introduced HOUSE FILE 2050 BY FISHER A BILL FOR An Act relating to the fee for new registration for repaired 1 motor vehicles previously titled under a salvage certificate 2 of title. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5482YH (3) 87 ns/rh

H.F. 2050 Section 1. Section 321.105A, subsection 2, paragraph c, 1 subparagraph (17), Code 2018, is amended to read as follows: 2 (17) Vehicles titled under a salvage certificate of 3 title. However, when such a vehicle has been repaired and a 4 regular certificate of title is applied for, the fee for new 5 registration is due as follows: 6 (a) If the owner of the vehicle is a licensed recycler, 7 unless the applicant is licensed as a vehicle dealer, the fee 8 for new registration applies based on the purchase price of 9 the vehicle. If the vehicle was not purchased, the fee for 10 new registration applies based on the fair market value of 11 the vehicle, with deduction allowed for the cost of parts, 12 supplies, and equipment for which sales tax was paid and which 13 were used to rebuild the vehicle. 14 (b) If the owner is a person who is not licensed as a 15 recycler or vehicle dealer, the fee for new registration 16 applies based on the purchase price of the vehicle. If the 17 vehicle was not purchased, the fee for new registration applies 18 based on the fair market value of the vehicle, with deduction 19 allowed for the cost of parts, frames, chassis, auto bodies, 20 or supplies that were purchased to rebuild the vehicle and for 21 which sales tax was paid. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 Under current law, when a motor vehicle titled under a 26 salvage certificate of title has been repaired and a regular 27 certificate of title is applied for by a licensed recycler, 28 unless the applicant is licensed as a vehicle dealer, the fee 29 for new registration applies based on the fair market value 30 of the vehicle, with deduction allowed for the cost of parts, 31 supplies, and equipment for which sales tax was paid and which 32 were used to rebuild the vehicle. When a motor vehicle titled 33 under a salvage certificate of title has been repaired and a 34 regular certificate of title is applied for by a person who 35 -1- LSB 5482YH (3) 87 ns/rh 1/ 2

H.F. 2050 is not a licensed recycler or vehicle dealer, the fee for new 1 registration applies based on the fair market value of the 2 vehicle, with deduction allowed for the cost of parts, frames, 3 chassis, auto bodies, or supplies that were purchased to 4 rebuild the vehicle and for which sales tax was paid. 5 This bill amends current law to provide that when a motor 6 vehicle titled under a salvage certificate of title has been 7 repaired and a regular certificate of title is applied for, the 8 fee for new registration applies based on the purchase price of 9 the vehicle. However, if the vehicle was not purchased, the 10 fee for new registration applies based on the fair market value 11 of the vehicle as provided by current law. 12 Under current law, Code section 321.105A provides that 13 “purchase price” is determined in the same manner as “sales 14 price” is determined for purposes of computing the tax imposed 15 upon the sales price of tangible personal property under Code 16 chapter 423, pursuant to the definition of “sales price” in 17 Code section 423.1. In addition, the county treasurer or the 18 department of transportation must require every applicant for a 19 new registration receipt for a vehicle subject to registration 20 to supply information as the county treasurer or the director 21 of transportation deems necessary as to the time of purchase, 22 the purchase price, and other information relative to the 23 purchase of the vehicle. 24 -2- LSB 5482YH (3) 87 ns/rh 2/ 2