Fiscal Note
Fiscal Services Division
SF 230 – Vehicle Salvage Title (LSB1685SV.1)
Staff Contact: Austin Brinks (515.725.2200) austin.brinks@legis.iowa.gov
Fiscal Note Version – Final Action
Description
Senate File 230 increases the threshold for the cost of repair to a damaged vehicle in order for
the vehicle to be deemed wrecked or salvage from 50.0% to 70.0% of the vehicle’s fair market
value.
Background
Currently, a vehicle is deemed wrecked or salvage if the cost to repair the vehicle exceeds
50.0% of the vehicle’s fair market value. Before the owner of a repaired vehicle can be issued a
vehicle registration to operate the vehicle on public highways, the vehicle must undergo a
salvage theft examination by a peace officer certified by the Iowa Law Enforcement Academy
(ILEA). Under Iowa Code section 321.52(4)(d), the purpose of the examination is to determine
whether the vehicle or repair components have been stolen and not whether a car is safe to
operate. The current cost of an examination is $50. The local agency performing the
examination retains $40; the remaining $10 is split evenly between the Road Use Tax Fund
(RUTF) and the General Fund. The moneys in the General Fund are to be used by the ILEA to
provide for the training and certification of officers performing salvage theft examinations.
County treasurers are also authorized under Iowa Code section 321.152(1)(b) to retain $2.50 for
each certificate of salvage title issued. In calendar year 2019, there were 48,783 salvage
vehicle titles issued. CY 2019 is used for this calculation due to the pandemic.
Assumptions
• The number of salvage theft examinations that will be completed annually beginning in
FY 2022 will total 48,700, which is similar to the number completed in CY 2019.
• Sixty percent of the vehicles issued a salvage title will be valued between 50.0% and 70.0%
of the fair market value, resulting in 29,000 fewer vehicles receiving salvage theft
examinations and salvage titles.
Fiscal Impact
Senate File 230 would decrease State revenues by $290,000 annually, which would be split
evenly between the RUTF and the ILEA. In addition, there would be an estimated decrease in
fee revenue of $1.2 million to the local law enforcement agencies that perform the examinations,
and an estimated decrease of $73,000 to counties.
The Department of Transportation also estimates $7,000 for labor costs associated with
information technology development that would be funded with the Department’s existing
resources.
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Sources
Iowa Department of Transportation
LSA calculations
/s/ Holly M. Lyons
June 7, 2021
Doc ID 12194661219466
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in
developing this fiscal note is available from the Fiscal Services Division of the Legislative Services
Agency upon request.
www.legis.iowa.gov
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Statutes affected:
Introduced: 321.52, 321H.2
Enrolled: 321.52, 321H.2