Bill Text: IA SF364 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act concerning vehicle registration fees, including matters relating to evasion of fees and to fees for electric vehicles, providing penalties, and including applicability provisions. (Formerly SSB 1204.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2013-12-31 - END OF 2013 ACTIONS [SF364 Detail]
Download: Iowa-2013-SF364-Introduced.html
Senate
File
364
-
Introduced
SENATE
FILE
364
BY
COMMITTEE
ON
TRANSPORTATION
(SUCCESSOR
TO
SSB
1204)
A
BILL
FOR
An
Act
concerning
vehicle
registration
fees,
including
matters
1
relating
to
evasion
of
fees
and
to
fees
for
electric
2
vehicles,
providing
penalties,
and
including
applicability
3
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
321.55,
Code
2013,
is
amended
to
read
as
1
follows:
2
321.55
Registration
and
financial
liability
coverage
required
3
for
certain
vehicles
owned
or
operated
by
nonresidents.
4
1.
A
nonresident
owner
or
operator
engaged
in
remunerative
5
employment
within
the
this
state
or
carrying
on
business
6
within
the
this
state
and
owning
or
operating
a
motor
vehicle,
7
trailer,
or
semitrailer
within
the
this
state
shall
register
8
and
maintain
financial
liability
coverage
as
required
under
9
section
321.20B
for
each
vehicle
and
pay
the
same
fees
for
10
registration
as
are
paid
for
like
vehicles
owned
by
residents
11
of
this
state.
However,
this
paragraph
subsection
does
not
12
apply
to
a
person
commuting
from
the
person’s
residence
in
13
another
state
or
whose
employment
is
seasonal
or
temporary,
not
14
exceeding
ninety
days.
15
2.
a.
A
nonresident
owner
of
a
motor
vehicle
operated
16
within
the
this
state
by
a
resident
of
the
this
state
shall
17
register
the
vehicle
and
shall
maintain
financial
liability
18
coverage
as
required
under
section
321.20B
for
the
vehicle.
19
The
nonresident
owner
shall
pay
the
same
fees
for
registration
20
as
are
paid
for
like
vehicles
owned
by
residents
of
this
state.
21
However,
registration
under
this
paragraph
is
not
required
for
22
vehicles
being
operated
by
residents
temporarily
,
not
exceeding
23
for
not
more
than
ninety
days.
For
purposes
of
this
paragraph,
24
a
vehicle
is
not
operated
in
the
state
temporarily,
and
is
25
therefore
subject
to
registration
and
the
owner
is
required
26
to
pay
the
applicable
fees,
if
the
vehicle
is
located
in
Iowa
27
for
more
than
ninety
consecutive
or
nonconsecutive
days
and
is
28
operated
on
an
Iowa
highway
by
an
Iowa
resident
during
that
29
time.
It
is
unlawful
for
a
resident
to
operate
within
the
30
state
an
unregistered
motor
vehicle
required
to
be
registered
31
under
this
paragraph.
The
ninety-day
temporary
period
of
32
operation
provided
for
under
this
paragraph
does
not
apply
to
a
33
vehicle
owned
by
a
shell
business
as
provided
in
paragraph
“b”
.
34
b.
On
or
after
July
1,
2013,
if
the
department,
in
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364
consultation
with
the
department
of
revenue,
determines
that
1
the
nonresident
owner
of
a
vehicle
is
a
partnership,
limited
2
liability
company,
or
corporation
that
is
a
shell
business,
it
3
shall
be
rebuttably
presumed
that
the
Iowa
resident
in
control
4
of
the
vehicle
is
the
actual
owner
of
the
vehicle,
that
the
5
vehicle
is
subject
to
registration
in
this
state,
and
that
6
payment
of
the
fee
for
new
registration
for
the
vehicle
is
owed
7
by
the
Iowa
resident.
8
(1)
Factors
which
indicate
that
a
partnership,
limited
9
liability
company,
or
corporation
is
a
shell
business
include
10
but
are
not
limited
to
the
following:
11
(a)
The
partnership,
limited
liability
company,
or
12
corporation
lacks
a
specific
business
activity
or
purpose.
13
(b)
The
partnership,
limited
liability
company,
or
14
corporation
fails
to
maintain
a
physical
location
in
the
15
foreign
state.
16
(c)
The
partnership,
limited
liability
company,
or
17
corporation
fails
to
employ
individual
persons
and
provide
18
those
persons
with
internal
revenue
service
form
W-2
wage
and
19
tax
statements.
20
(d)
The
partnership,
limited
liability
company,
or
21
corporation
fails
to
file
federal
tax
returns,
or
fails
to
file
22
a
required
state
tax
return
in
the
foreign
state.
23
(2)
Factors
which
indicate
that
a
person
is
in
control
of
a
24
vehicle
include
but
are
not
limited
to
the
following:
25
(a)
The
person
was
the
initial
purchaser
of
the
vehicle.
26
(b)
The
person
operated
or
stored
the
vehicle
in
Iowa
for
27
any
period
of
time.
28
(c)
The
person
is
a
partner,
member,
or
shareholder
of
29
the
nonresident
partnership,
limited
liability
company,
or
30
corporation
that
purports
to
be
the
owner
of
the
vehicle.
31
(d)
The
person
is
insured
to
drive
the
vehicle.
32
(3)
If
the
department
determines
that
the
nonresident
owner
33
of
a
vehicle
is
a
shell
business,
the
department
shall
notify
34
the
Iowa
resident
in
control
of
the
vehicle
in
writing
that
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the
Iowa
resident
is
required
to
obtain
an
Iowa
certificate
of
1
title
and
registration
for
the
vehicle
and
pay
the
fee
for
new
2
registration
owed
for
the
vehicle
not
later
than
thirty
days
3
from
the
date
of
the
notice.
4
Sec.
2.
Section
321.105A,
subsection
7,
Code
2013,
is
5
amended
to
read
as
follows:
6
7.
Penalty
for
false
statement
or
evasion
of
fee
.
7
a.
A
person
who
willfully
makes
a
false
statement
in
8
regard
to
the
purchase
price
of
a
vehicle
subject
to
a
fee
9
for
new
registration
or
willfully
attempts
in
any
manner
to
10
evade
payment
of
the
fee
required
by
this
section
is
guilty
11
of
a
fraudulent
practice.
A
person
who
willfully
makes
a
12
false
statement
in
regard
to
the
purchase
price
of
such
a
13
vehicle
with
the
intent
to
evade
payment
of
the
fee
for
new
14
registration
or
willfully
attempts
in
any
manner
to
evade
15
payment
of
the
fee
required
by
this
section
shall
be
assessed
16
a
penalty
of
seventy-five
percent
of
the
amount
of
the
fee
17
unpaid
and
required
to
be
paid
on
the
actual
purchase
price
18
less
trade-in
allowance.
19
b.
An
Iowa
resident
found
to
be
in
control
of
a
vehicle
20
which
is
owned
by
a
shell
business
and
for
which
the
fee
for
new
21
registration
has
not
been
paid,
as
provided
in
section
321.55,
22
subsection
2,
is
guilty
of
a
fraudulent
practice.
An
Iowa
23
resident
found
to
be
in
control
of
a
vehicle
which
is
owned
by
24
a
shell
business
and
for
which
the
fee
for
new
registration
25
has
not
been
paid,
as
provided
in
section
321.55,
subsection
26
2,
shall
be
assessed
a
penalty
of
seventy-five
percent
of
the
27
amount
of
the
fee
unpaid
and
required
to
be
paid
on
the
actual
28
purchase
price
less
trade-in
allowance.
29
Sec.
3.
REPEAL.
Section
321.116,
Code
2013,
is
repealed.
30
Sec.
4.
APPLICABILITY
——
PRIOR
ELECTRIC
VEHICLE
31
REGISTRATIONS.
32
1.
Except
as
provided
in
subsection
2,
the
section
of
this
33
Act
that
repeals
section
321.116
applies
to
the
registration
of
34
electric
motor
vehicles
for
registration
years
beginning
on
or
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after
January
1,
2014.
1
2.
For
an
annual
renewal
of
registration
for
an
electric
2
motor
vehicle
which
was
registered
to
the
same
owner
for
a
3
registration
year
beginning
prior
to
January
1,
2014,
the
4
annual
registration
fee
shall
be
according
to
the
terms
of
5
section
321.116,
Code
2013.
6
EXPLANATION
7
This
bill
contains
provisions
relating
to
collection
of
8
the
fee
for
new
registration
from
vehicle
owners
who
attempt
9
to
evade
payment
of
the
fee,
including
resident
owners
who
10
establish
a
shell
business
in
another
state.
In
addition,
11
the
bill
provides
for
annual
registration
fees
for
electric
12
vehicles
based
on
the
weight
and
value
of
the
vehicle.
13
Under
current
law,
the
nonresident
owner
of
a
motor
vehicle
14
which
is
operated
within
this
state
by
a
resident
of
this
15
state
must
register
the
vehicle
in
Iowa
and
pay
the
same
fees
16
required
for
registration
of
a
vehicle
by
a
resident
owner.
17
However,
registration
is
not
required
for
a
vehicle
owned
by
18
a
nonresident
and
operated
in
this
state
by
an
Iowa
resident
19
for
a
temporary
period
of
not
more
than
90
days.
The
bill
20
provides
that
if
a
vehicle
owned
by
a
nonresident
is
located
in
21
Iowa
for
more
than
90
consecutive
or
nonconsecutive
days
and
is
22
operated
by
an
Iowa
resident
during
that
time,
the
vehicle
is
23
not
considered
to
be
in
the
state
temporarily.
24
The
bill
provides
that
on
or
after
July
1,
2013,
if
the
25
department
of
transportation,
in
consultation
with
the
26
department
of
revenue,
determines
that
the
nonresident
owner
27
of
a
vehicle
is
a
partnership,
limited
liability
company,
or
28
corporation
that
is
a
shell
business,
there
is
a
rebuttable
29
presumption
that
the
Iowa
resident
in
control
of
the
vehicle
30
is
the
actual
owner
of
the
vehicle,
that
the
vehicle
is
31
subject
to
registration
in
this
state,
and
that
the
fee
for
32
new
registration
for
the
vehicle
is
owed
by
the
Iowa
resident.
33
The
90-day
grace
period
does
not
apply
to
such
a
vehicle,
34
and
the
department
of
transportation
shall
notify
the
Iowa
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364
resident
in
control
of
the
vehicle
of
the
requirement
to
obtain
1
a
certificate
of
title
and
registration
for
the
vehicle
and
2
pay
the
applicable
fee
for
registration
within
30
days
of
the
3
date
of
the
notice.
The
bill
lists
factors
that
identify
a
4
shell
business,
including
but
not
limited
to
lacking
a
specific
5
business
activity
or
purpose,
failing
to
maintain
a
physical
6
location
in
the
foreign
jurisdiction,
failing
to
employ
7
individuals
and
issue
federal
W-2
forms,
and
failing
to
file
8
federal
or
state
tax
returns.
Factors
used
to
identify
the
9
person
in
control
of
the
vehicle
include
that
the
person
was
10
the
original
purchaser
of
the
vehicle;
that
the
person
operated
11
or
stored
the
vehicle
in
Iowa
for
any
period
of
time;
that
the
12
person
is
a
partner,
member,
or
shareholder
of
the
nonresident
13
partnership,
limited
liability
company,
or
corporation
that
14
purports
to
be
the
owner
of
the
vehicle;
or
that
the
person
is
15
insured
to
operate
the
vehicle.
16
The
bill
provides
that
a
person
who
willfully
attempts
to
17
evade
payment
of
the
fee
for
new
registration
is
guilty
of
18
a
fraudulent
practice.
The
bill
also
provides
that
a
person
19
who
is
found
to
be
in
control
of
a
vehicle
that
is
owned
by
a
20
shell
business
and
for
which
the
fee
for
new
registration
is
21
unpaid
is
guilty
of
a
fraudulent
practice.
In
addition
to
any
22
criminal
penalty,
the
person
shall
be
assessed
a
penalty
of
23
75
percent
of
the
amount
of
the
fee
unpaid
and
required
to
be
24
paid.
These
are
the
same
penalties
that
apply
for
making
a
25
false
statement
in
regard
to
the
purchase
price
of
a
vehicle
26
subject
to
the
fee
for
new
registration.
27
Code
section
321.116,
which
establishes
an
annual
28
registration
fee
of
$25
for
an
electric
motor
vehicle
up
to
29
five
model
years
old
and
a
fee
of
$15
thereafter,
is
repealed.
30
As
a
result,
electric
motor
vehicles
will
be
subject
to
31
registration
fees
based
on
the
weight
and
value
of
the
vehicle.
32
The
change
applies
for
registration
years
beginning
on
or
after
33
January
1,
2014.
However,
current
fees
will
continue
to
apply
34
to
registration
renewals
for
electric
motor
vehicles
registered
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