Senate File 101 - IntroducedA Bill ForAn Act 1establishing an annual vehicle registration surcharge
2and appropriating the resulting revenue for certain expenses
3of the state patrol.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 312.2, subsection 17, paragraph a, Code
22021, is amended to read as follows:
   3a.  The treasurer of state, before making the allotments
4provided for in this section, shall credit annually to the
5TIME-21 fund created in section 312A.2, the revenue accruing to
6the road use tax fund from annual motor vehicle registration
7fees for passenger cars, multipurpose vehicles, and motor
8trucks in excess of three hundred ninety-two million dollars
9annually. For purposes of this paragraph, “annual motor vehicle
10registration fees”
does not include the annual registration
11surcharge imposed under section 321.105B.

12   Sec. 2.  Section 312.2, Code 2021, is amended by adding the
13following new subsection:
14   NEW SUBSECTION.  18.  Notwithstanding section 312.9 or
15any other provision of law to the contrary, the treasurer
16of state, before making the allotments provided for in this
17section, shall credit monthly to the department of public
18safety the revenue accruing to the road use tax fund from the
19collection of the annual registration surcharge pursuant to
20section 321.105B. Moneys credited under this subsection are
21appropriated to the department of public safety to be used for
22vehicles, equipment, and training expenses of the division of
23state patrol related to the supervision of the highways of this
24state.
25   Sec. 3.  Section 321.1, subsection 59A, Code 2021, is amended
26to read as follows:
   2759A.  “Registration fees”, unless otherwise specified,
28means both the annual vehicle registration fee, the annual
29registration surcharge,
and the fee for new registration,
30to the extent applicable, for purposes of administering the
31provisions of this chapter concerning vehicle registration
32fees.
33   Sec. 4.  Section 321.20A, subsection 2, Code 2021, is amended
34to read as follows:
   352.  An owner of more than fifty commercial vehicles subject
-1-1to the apportioned registration provisions of chapter 326 who
2is issued a certificate of title under this section shall not
3be subject to annual registration fees until the commercial
4vehicle is driven or moved upon the highways. The annual
5registration fee due shall be prorated for the remaining
6unexpired months of the registration year. Ownership of the
7commercial vehicle shall not be transferred until annual
8registration fees and the annual registration surcharge have
9been paid to the department.
10   Sec. 5.  Section 321.23, subsection 3, Code 2021, is amended
11to read as follows:
   123.  In the event an applicant for registration of a foreign
13vehicle for which a certificate of title has been issued is
14able to furnish evidence of being the registered owner of the
15vehicle to the county treasurer of the owner’s residence,
16although unable to surrender such certificate of title, the
17county treasurer may issue a registration receipt and plates
18upon receipt of the required annual registration fee, the
19annual registration surcharge,
and the fee for new registration
20but shall not issue a certificate of title thereto. Upon
21surrender of the certificate of title from the foreign state,
22the county treasurer shall issue a certificate of title to the
23owner, or person entitled thereto, of such vehicle as provided
24in this chapter. The owner of a vehicle registered under this
25subsection shall not be required to obtain a certificate of
26title in this state and may transfer ownership of the vehicle
27to a motor vehicle dealer licensed under chapter 322 if, at the
28time of the transfer, the certificate of title is held by a
29secured party and the dealer has forwarded to the secured party
30the sum necessary to discharge the security interest pursuant
31to section 321.48, subsection 1.
32   Sec. 6.  Section 321.24, subsection 10, Code 2021, is amended
33to read as follows:
   3410.  A vehicle shall be registered for the registration
35year. A vehicle registered for the first time in this state
-2-1shall be registered for the remaining unexpired months of the
2registration year and pay an annual registration fee prorated
3for the remaining unexpired months of the registration year
4plus the annual registration surcharge pursuant to section
5321.105B and
a fee for new registration, if applicable,
6 pursuant to section 321.105A. Except for a vehicle registered
7under chapter 326, a vehicle registered for the first time
8during the eleventh month of the owner’s registration year
9may be registered for the remaining unexpired months of the
10registration year as provided in this subsection or for the
11remaining unexpired months of the registration year and for
12the next registration year, upon payment of the applicable
13registration fees.
14   Sec. 7.  Section 321.30, subsection 3, Code 2021, is amended
15to read as follows:
   163.  The department or the county treasurer shall refuse
17registration of a vehicle if the applicant for registration of
18the vehicle has failed to pay the required annual registration
19fee, the annual registration surcharge, or the fee for new
20registration of any vehicle owned or previously owned when the
21fee was required to be paid by the applicant, and for which
22vehicle the registration was suspended or revoked under section
23321.101, subsection 1, paragraph “d”, or section 321.101A,
24until the fee is paid together with any accrued penalties.
25   Sec. 8.  Section 321.40, subsection 1, Code 2021, is amended
26to read as follows:
   271.  Application for renewal for a vehicle registered under
28this chapter shall be made on or after the first day of the
29month prior to the month of expiration of registration and
30up to and including the last day of the month following the
31month of expiration of registration. The registration shall
32be renewed upon payment of the appropriate annual registration
33fee and the annual registration surcharge. Application for
34renewal for a vehicle registered under chapter 326 shall be
35made on or after the first day of the month prior to the month
-3-1of expiration of registration and up to and including the last
2day of the month of expiration of registration.
3   Sec. 9.  Section 321.40, subsection 6, paragraph b, Code
42021, is amended to read as follows:
   5b.  The county treasurer of the county of the person’s
6residence and in which the person’s vehicle is registered,
7in cooperation with the department of revenue, may collect
8delinquent taxes including penalties and interest owed to
9the state from a person applying for renewal of a vehicle
10registration. The applicant may remit full payment of the
11taxes including applicable penalties and interest, along with
12a processing fee of five dollars, to the county treasurer at
13the time of registration renewal. Upon full payment of the
14required taxes including applicable penalties and interest,
15the processing fee, and the vehicle registration fee, and the
16annual registration surcharge,
the county treasurer shall issue
17the registration to the person. A county treasurer collecting
18on behalf of the department of revenue shall update the vehicle
19registration records through the distributed teleprocessing
20network on a daily basis for all persons who have paid taxes
21pursuant to this subsection. A county treasurer shall forward
22all funds collected for the department of revenue to the
23department of revenue.
24   Sec. 10.  Section 321.40, subsection 7, paragraph b, Code
252021, is amended to read as follows:
   26b.  The county treasurer of the county of an applicant’s
27residence and in which the applicant’s vehicle is registered,
28in cooperation with the department, may collect a civil
29penalty imposed on the applicant pursuant to section 321N.3,
30subsection 3, when the applicant applies for renewal of a
31vehicle registration. The applicant may remit full payment of
32the civil penalty, along with a processing fee of five dollars,
33to the county treasurer at the time of registration renewal.
34Upon full payment of the civil penalty, the processing fee,
35and the vehicle registration fee, and the annual registration
-4-1surcharge,
the county treasurer shall issue the registration to
2the applicant. A county treasurer collecting a civil penalty
3on behalf of the department pursuant to this subsection shall
4update the vehicle registration records through the distributed
5teleprocessing network on a daily basis for all applicants
6who have paid civil penalties pursuant to this subsection. A
7county treasurer shall forward all funds collected on behalf of
8the department to the department.
9   Sec. 11.  Section 321.46, subsection 2, Code 2021, is amended
10to read as follows:
   112.  Upon filing the application for a new registration
12and a new title, the applicant shall pay a title fee of
13twenty dollars, an annual registration fee prorated for the
14remaining unexpired months of the registration year, an annual
15registration surcharge,
and a fee for new registration if
16applicable. A manufacturer applying for a certificate of
17title pursuant to section 322G.12 shall pay a title fee of
18ten dollars. However, a title fee shall not be charged to a
19manufactured or mobile home retailer applying for a certificate
20of title for a used mobile home or manufactured home, titled
21in Iowa, as required under section 321.45, subsection 4.
22The county treasurer, if satisfied of the genuineness and
23regularity of the application, and in the case of a mobile
24home or manufactured home, that taxes are not owing under
25chapter 435, and that applicant has complied with all the
26requirements of this chapter, shall issue a new certificate
27of title and, except for a mobile home, manufactured home,
28or a vehicle returned to and accepted by a manufacturer as
29described in section 322G.12, a registration card to the
30purchaser or transferee, shall cancel the prior registration
31for the vehicle, and shall forward the necessary copies to the
32department on the date of issuance, as prescribed in section
33321.24. Mobile homes or manufactured homes titled under
34chapter 448 that have been subject under section 446.18 to a
35public bidder sale in a county shall be titled in the county’s
-5-1name, with no fee, and the county treasurer shall issue the
2title.
3   Sec. 12.  Section 321.70, Code 2021, is amended to read as
4follows:
   5321.70  Dealer vehicles.
   6A dealer registered under this chapter shall not be required
7to register any vehicle owned by the dealer which is being held
8for sale or trade, provided the annual registration fee was and
9the annual registration surcharge were
not delinquent at the
10time the vehicle was acquired by the dealer. When a dealer
11ceases to hold any vehicle for sale or trade or the vehicle
12otherwise becomes subject to registration under this chapter
13the annual registration fee, the annual registration surcharge,
14 and delinquent annual registration fee or surcharge, if any,
15shall be due for the registration year.
16   Sec. 13.  Section 321.101, subsection 1, paragraph d, Code
172021, is amended to read as follows:
   18d.  When the department determines that the required annual
19registration fee or the annual registration surcharge has not
20been paid and the fee or surcharge is not paid upon reasonable
21notice and demand.
22   Sec. 14.  Section 321.101A, Code 2021, is amended to read as
23follows:
   24321.101A  Revocation of registration by county treasurer.
   25The county treasurer may revoke the registration and
26registration plates of a vehicle if the annual registration
27fee, the annual registration surcharge, or the fee for new
28registration is paid by check, electronic payment, or credit
29card and the check, electronic payment, or credit card is
30not honored by the payer’s financial institution or credit
31card company, upon reasonable notice and demand. The owner
32of the vehicle or person in possession of the registration
33and registration plates for the vehicle shall immediately
34return the revoked registration and registration plates to the
35appropriate county treasurer’s office.
-6-
1   Sec. 15.  Section 321.105A, subsection 3, paragraph b,
2subparagraph (2), Code 2021, is amended to read as follows:
   3(2)  Annual registration fees and annual registration
4surcharges
.
5   Sec. 16.  NEW SECTION.  321.105B  Annual registration
6surcharge.
   71.  In addition to the annual registration fee required
8under section 321.105, an annual registration surcharge is
9imposed in the amount of two dollars for each vehicle subject
10to registration. The annual registration surcharge shall
11be paid by the owner of the vehicle to the county treasurer
12or the department at the time application is made for a new
13registration and certificate of title for a vehicle and each
14time application is made for renewal of registration for
15a vehicle. If a vehicle’s registration fee is payable in
16semiannual installments, the annual registration surcharge
17shall be paid with the first installment.
   182.  The surcharge imposed under this section shall not
19be considered in the calculation of the annual registration
20fee for a vehicle, is not subject to proration, and is not
21refundable except as provided in section 321.129.
   223.  This section does not apply to vehicles that are exempt
23from annual registration fees.
24   Sec. 17.  Section 321.151, Code 2021, is amended to read as
25follows:
   26321.151  Duty and liability of treasurer.
   27The county treasurer shall collect the annual registration
28fee, the annual registration surcharge, the fee for new
29registration, and penalties on each vehicle registered by
30the county treasurer and shall be responsible on the county
31treasurer’s bond for such amount. The county treasurer shall
32remit such amount to the treasurer of state as provided in this
33chapter. Fees collected pursuant to participation in county
34issuance of driver’s licenses under chapter 321M shall be
35governed by the provisions of that chapter.
-7-
1   Sec. 18.  Section 321.152, subsection 1, paragraph a, Code
22021, is amended to read as follows:
   3a.  Four percent of the total collection, excluding the
4amount of any fee for new registration and annual registration
5surcharge
, for each annual or semiannual vehicle registration
6and each duplicate registration card or plate issued.
7   Sec. 19.  Section 326.2, subsection 5, Code 2021, is amended
8to read as follows:
   95.  “Registration fee” means the annual motor vehicle
10registration fee imposed pursuant to section 321.105, unless
11otherwise specified. “Registration fee” includes the annual
12registration surcharge imposed pursuant to section 321.105B, in
13accordance with the terms of that section.

14EXPLANATION
15The inclusion of this explanation does not constitute agreement with
16the explanation’s substance by the members of the general assembly.
   17This bill imposes an annual registration surcharge in
18the amount of $2 for each vehicle subject to registration,
19including both motor vehicles and trailers. The surcharge
20is payable to the county treasurer or the department of
21transportation the first time application is made for
22registration and certificate of title for a vehicle and each
23time registration is renewed. Revenues collected from the
24annual registration surcharge accrue to the road use tax fund
25and are appropriated to the department of public safety to be
26used for vehicles, equipment, and training expenses of the
27division of state patrol related to the supervision of the
28highways of this state.
   29The bill amends the definition of “registration fees” for
30purposes of Code chapter 321 to provide for administration
31of the annual registration surcharge in conjunction with
32administration of annual vehicle registration fees, and the
33bill amends the definition of “registration fee” in Code
34chapter 326 to provide for administration of the annual
35registration surcharge in conjunction with administration of
-8-1apportioned fees for commercial motor vehicles. In addition,
2the bill makes conforming amendments to various Code sections
3relating to vehicle registration fees and the distribution of
4revenue from the road use tax fund.
   5It is a simple misdemeanor punishable by a scheduled fine of
6$70 for a person to drive, move, or permit to be driven or moved
7upon the highway a vehicle required to be registered that is
8not registered or for which the appropriate fees have not been
9paid, notwithstanding certain exceptions.
-9-
th/ns