Bill Summary – FastDemocracy

Fiscal Note
                                       Fiscal Services Division
HF 853 – Snowmobile Fees (LSB2777HZ)
Staff Contact: Danielle Beavers (515.725.1286) danielle.beavers@legis.iowa.gov
Fiscal Note Version – New
Description
House File 853 increases the annual registration fee for a snowmobile from $15 to $30 in Iowa
Code section 321G.4. The Bill also amends Iowa Code section 321G.3 to eliminate the
requirement that a resident snowmobile operator must obtain a user permit from the Department
of Natural Resources (DNR) in addition to registering the snowmobile to operate on public land,
public ice, or a designated snowmobile trail of the State.
A nonresident snowmobile operator must still purchase a user permit from the DNR in addition
to registering the snowmobile. The user permit is issued for only one snowmobile and cannot
be transferred to a different snowmobile, and is only valid for the calendar year or time period
specified by the permit. Both resident and nonresident snowmobile operators are required to
display the registration decal, and nonresidents are also required to display the user permit
decal.
User permits will be issued at a fee of $15 each by a county recorder or a license agent
designated by the Director of the DNR under Iowa Code section 483A.11, who will retain a
writing fee from the sale of each user permit. An administrative fee is also required to be
established by the Natural Resource Commission in addition to the fee for each user permit.
Background
Under current law, both resident and nonresident snowmobile operators must pay the annual
registration fee for a snowmobile and purchase a user permit from the DNR for $15 each.
Resident and nonresident snowmobile operators must also display the registration decal and
user permit decal, which expire at midnight on December 31 of each year. Any snowmobile
user with an unregistered snowmobile is allowed to be registered in the same transaction as a
renewed registration beginning September 1 of each year. The fee for a renewal registration is
$5, and the registration fee for the subsequent year is $15.
Moneys collected by the DNR from all snowmobile registration fees are remitted to the
Treasurer of State who allots the collected revenue to a special Snowmobile Fund. The moneys
in the special Snowmobile Fund are appropriated for snowmobile programs of the State. These
programs include grants, subgrants, contracts, or cost-sharing of snowmobile programs with
political subdivisions or incorporated private organizations or both, which may include the
purchase, ownership, and maintenance of trail grooming equipment in accordance with rules
adopted by the Commission. At least 70.0% of the moneys in the special Snowmobile Fund are
available to political subdivisions or incorporated private organizations or both, and unused
moneys do not revert to the General Fund.
Assumptions
• There will be a $15 increase in the annual registration fee for a snowmobile, for a total fee of
   $30.
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•   There will be a $15 increase in the user permit fee for a snowmobile, for a total fee of $30,
    only applicable to nonresident snowmobile operators.
•   There were 13,015 resident user permits sold at $15 each in 2021. Under the Bill, resident
    user permits will no longer be required, causing a decrease in annual revenue of $195,000.
•   There will be 21,053 snowmobiles registered under the Bill, which matches the number of
    resident permits issued in 2021. If permits are sold at a similar rate for $30 each instead of
    $15 each, there will be an increase of $315,000 in registration fee revenue.
•   Of registration and user permit fee revenue, 30.0% goes to the DNR and 70.0% goes to the
    special Snowmobile Fund.
Fiscal Impact
House File 853 is expected to increase total revenue to the Snowmobile Fund by $120,500. Of
the increased revenue, $36,170 would be available to the DNR and $84,400 would be available
to political subdivisions or incorporated private organizations or both.
Source
Department of Natural Resources
                                                                        /s/ Holly M. Lyons
                                                                           April 6, 2022
Doc ID 1289322
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: 321G.3, 805.8B, 321G.4B, 321G.6, 321G.4A, 321G.4