Bill Text: IA SF423 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act relating to the fee for new registration for repaired salvage vehicles, and including effective date provisions. (Formerly SF 354; see SF 495.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2015-03-17 - Subcommittee, McCoy, Quirmbach, and Smith. S.J. 599. [SF423 Detail]
Download: Iowa-2015-SF423-Introduced.html
Senate File 423 - Introduced SENATE FILE BY COMMITTEE ON TRANSPORTATION (SUCCESSOR TO SF 354) A BILL FOR 1 An Act relating to the fee for new registration for repaired 2 salvage vehicles, and including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2420SV (3) 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 taking into account the deductions applied for the cost of 1 21 parts, supplies, and equipment for which sales tax was paid and 1 22 which were used to rebuild the vehicle. 1 23 (b) If the motor vehicle is nine model years old or older, 1 24 but newer than twelve model years old, three=fourths of one 1 25 percent of the value of the vehicle as determined by the 1 26 department, taking into account the deductions applied for the 1 27 cost of parts, supplies, and equipment for which sales tax was 1 28 paid and which were used to rebuild the vehicle. 1 29 (c) If the motor vehicle is twelve model years old or 1 30 older, one and one=half percent of the value of the vehicle 1 31 as determined by the department, taking into account the 1 32 deductions applied for the cost of parts, supplies, and 1 33 equipment for which sales tax was paid and which were used to 1 34 rebuild the vehicle. 1 35 Sec. 2. EFFECTIVE DATE. This Act takes effect January 1, 2 1 2016. 2 2 EXPLANATION 2 3 The inclusion of this explanation does not constitute agreement with 2 4 the explanation's substance by the members of the general assembly. 2 5 Current law provides that a vehicle titled under a 2 6 salvage certificate of title is exempt from the fee for new 2 7 registration until the vehicle is repaired and a regular 2 8 certificate of title is applied for. If the owner of the 2 9 vehicle is a licensed recycler, but not licensed as a vehicle 2 10 dealer, the fee for new registration applies based on the fair 2 11 market value of the vehicle, with deduction allowed for the 2 12 cost of parts, supplies, and equipment for which sales tax 2 13 was paid and which were used to rebuild the vehicle. If the 2 14 owner is a person who is not licensed as a recycler or vehicle 2 15 dealer, the fee for new registration applies based on the fair 2 16 market value of the vehicle, with deduction allowed for the 2 17 cost of parts, frames, chassis, auto bodies, or supplies that 2 18 were purchased to rebuild the vehicle and for which sales tax 2 19 was paid. 2 20 The bill strikes these provisions but continues to provide 2 21 that a vehicle titled under a salvage certificate of title is 2 22 exempt from the fee for new registration until the vehicle is 2 23 repaired and a regular certificate of title is applied for. 2 24 The bill provides that if the owner of the vehicle is 2 25 not licensed as a motor vehicle dealer, the fee for new 2 26 registration shall be equal to 2 percent of the value of 2 27 the vehicle as determined by the department, with deductions 2 28 allowed for the cost of parts, supplies, and equipment for 2 29 which sales tax was paid and which were used to rebuild 2 30 the vehicle. The bill provides that the department of 2 31 transportation shall adopt rules to determine how such 2 32 deductions shall be documented. 2 33 The bill provides that the fee for new registration shall be 2 34 automatically reduced in certain circumstances. If the motor 2 35 vehicle is seven model years old or older, but newer than nine 3 1 model years old, the fee for new registration is reduced 0.25 3 2 percent of the value of the vehicle. If the motor vehicle is 3 3 nine model years old or older, but newer than 12 model years 3 4 old, the fee for new registration is reduced 0.75 percent of 3 5 the value of the vehicle. If the motor vehicle is 12 model 3 6 years old or older, the fee for new registration is reduced 1.5 3 7 percent of the value of the vehicle. For these reductions, the 3 8 value of the vehicle is determined by the department, taking 3 9 into account the deductions applied for the cost of parts, 3 10 supplies, and equipment for which sales tax was paid and which 3 11 were used to rebuild the vehicle. 3 12 The bill takes effect January 1, 2016. LSB 2420SV (3) 86 ns/nh
