Senate File 354 - Introduced SENATE FILE BY SCHOENJAHN A BILL FOR 1 An Act relating to the fee for new registration for repaired 2 salvage vehicles. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2420SS (2) 86 ns/nh PAG LIN 1 1 Section 1. Section 321.105A, subsection 2, paragraph c, 1 2 subparagraph (17), Code 2015, is amended by striking the 1 3 subparagraph and inserting in lieu thereof the following: 1 4 (17) Vehicles titled under a salvage certificate of 1 5 title. However, when such a vehicle has been repaired and 1 6 a regular certificate of title is applied for, the fee for 1 7 new registration is due. If the owner of the vehicle is 1 8 not licensed as a motor vehicle dealer, the fee for new 1 9 registration shall be equal to two percent of the value of 1 10 the vehicle as determined by the department, with deductions 1 11 allowed for the cost of parts, supplies, and equipment for 1 12 which sales tax was paid and which were used to rebuild 1 13 the vehicle. The department shall adopt rules to determine 1 14 how such deductions shall be documented. The fee for new 1 15 registration pursuant to this subparagraph (17) shall be 1 16 automatically reduced in the following amounts, as applicable: 1 17 (a) If the motor vehicle is seven model years old or older, 1 18 but newer than nine model years old, one=fourth of one percent 1 19 of the value of the vehicle as determined by the department. 1 20 (b) If the motor vehicle is nine model years old or older, 1 21 but newer than twelve model years old, three=fourths of one 1 22 percent of the value of the vehicle as determined by the 1 23 department. 1 24 (c) If the motor vehicle is twelve model years old or 1 25 older, one and one=half percent of the value of the vehicle as 1 26 determined by the department. 1 27 EXPLANATION 1 28 The inclusion of this explanation does not constitute agreement with 1 29 the explanation's substance by the members of the general assembly. 1 30 Current law provides that a vehicle titled under a 1 31 salvage certificate of title is exempt from the fee for new 1 32 registration until the vehicle is repaired and a regular 1 33 certificate of title is applied for. If the owner of the 1 34 vehicle is a licensed recycler, but not licensed as a vehicle 1 35 dealer, the fee for new registration applies based on the fair 2 1 market value of the vehicle, with deduction allowed for the 2 2 cost of parts, supplies, and equipment for which sales tax 2 3 was paid and which were used to rebuild the vehicle. If the 2 4 owner is a person who is not licensed as a recycler or vehicle 2 5 dealer, the fee for new registration applies based on the fair 2 6 market value of the vehicle, with deduction allowed for the 2 7 cost of parts, frames, chassis, auto bodies, or supplies that 2 8 were purchased to rebuild the vehicle and for which sales tax 2 9 was paid. 2 10 The bill strikes these provisions but continues to provide 2 11 that a vehicle titled under a salvage certificate of title is 2 12 exempt from the fee for new registration until the vehicle is 2 13 repaired and a regular certificate of title is applied for. 2 14 The bill provides that if the owner of the vehicle is 2 15 not licensed as a motor vehicle dealer, the fee for new 2 16 registration shall be equal to 2 percent of the value of 2 17 the vehicle as determined by the department, with deductions 2 18 allowed for the cost of parts, supplies, and equipment for 2 19 which sales tax was paid and which were used to rebuild 2 20 the vehicle. The bill provides that the department of 2 21 transportation shall adopt rules to determine how such 2 22 deductions shall be documented. 2 23 The bill provides that the fee for new registration shall be 2 24 automatically reduced in certain circumstances. If the motor 2 25 vehicle is seven model years old or older, but newer than nine 2 26 model years old, the fee for new registration is reduced 0.25 2 27 percent of the value of the vehicle. If the motor vehicle is 2 28 nine model years old or older, but newer than 12 model years 2 29 old, the fee for new registration is reduced 0.75 percent of 2 30 the value of the vehicle. If the motor vehicle is 12 model 2 31 years old or older, the fee for new registration is reduced 1.5 2 32 percent of the value of the vehicle. LSB 2420SS (2) 86 ns/nh