SSB 1053 (LSB 1875XC (1) 87)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON FEENSTRA)

A BILL FOR

An Act relating to registration fees for motor vehicles transferred to nonprofit entities for donation to individuals.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321.105A, subsection 2, paragraph c, Code 2017, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (022)  A motor vehicle transferred to a nonprofit entity, which is exempt from federal income taxation pursuant to section 501(c)(3) of the Internal Revenue Code, for the purpose of donation to an individual served by the nonprofit entity, in a transaction in which no consideration is given.
    Sec. 2.  NEW SECTION.  321.118  Donated vehicles.
   The annual registration fee for a motor vehicle transferred to a nonprofit entity as described in section 321.105A, subsection 2, paragraph “c”, subparagraph (022), is ten dollars. After the nonprofit entity donates the motor vehicle to an individual served by the nonprofit entity, the registration fee for the motor vehicle shall be calculated pursuant to section 321.109.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to registration fees for motor vehicles transferred to nonprofit entities for donation to individuals. The bill provides an exemption from the fee for new registration for vehicles transferred to a nonprofit entity for the purpose of donation to an individual served by the nonprofit entity in a transaction involving no consideration. The bill also establishes an annual registration fee of $10 for such vehicles and provides that, after the vehicle is donated from the nonprofit entity to the individual, the annual registration fee becomes the regular registration fee for the vehicle.