Fiscal Note
Fiscal Services Division
HF 870 – Motor Vehicle Title and Registration, County of Issuance (LSB2767HZ)
Staff Contact: Austin Brinks (515.725.2200) austin.brinks@legis.iowa.gov
Fiscal Note Version – New
Description
House File 870 allows a person to go to any county treasurer to register the person’s vehicle or
obtain a certificate of title. The Bill requires that if a person utilizes a county other than the one
the person resides in for these services, the county providing the service must electronically
submit the required documentation to that person’s county of residence, the county where the
primary user of the vehicle is located, a lessee’s county of residence, or the county where the
primary user is located in the event that a business has vehicles in multiple counties.
The Bill requires a person who buys a mobile or manufactured home to apply for and obtain a
new registration and certificate of title within 30 calendar days of the purchase or transfer. In
addition, under the Bill, a security interest for a mobile or manufactured home is perfected once
an owner pays a $15 fee for each security interest that is shown.
The Bill also increases by $5 various fees required in the registration and titling of vehicles,
including establishing a $5 increase in the fee for new registrations.
Background
Iowa Code section 321.152 currently allows counties to retain and deposit fees in their general
funds. The fees that can be retained are as follows:
• 4.0% of the total collection of each annual or semiannual vehicle registration, and each
duplicate registration card or plate issued.
• $2.50 from each fee collected for certificates of title.
• 40.0% of all fees collected for certified copies of certificates of title.
• 60.0% of all fees collected for perfection of security interests.
• 25.0% of each penalty collected for improper business-trade truck registration.
• $1.00 from each fee for new registration.
• 25.0% of each penalty collected for improper motorsports recreational vehicle registration.
Currently, a person must apply for registration and certificate of title from the person’s county of
residence or from the county where the primary users of the vehicle are located.
Assumptions
• FY 2022 transactions will be similar to CY 2019.
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Fiscal Impact
Table 1 shows both the current share of fees retained in county general funds and the share
under HF 870.
Table 1
Fees Retained by Counties
Current Fees Retained Fees Retained Under HF 870
Fees for New Title $2.50 $7.50
Fees for Replacement Title $2.50 $7.50
Manufacturer Buy Back $2.50 $7.50
Perfection of Security Interest $6.00 $11.00
Salvage Title $2.50 $7.50
Fee for New Registration $1.00 $6.00
House File 870 is estimated to increase fee revenue retained in county general funds by $10.7
million annually, beginning in FY 2022 (Table 2).
Table 2
Fee Revenue Retained by Counties
2019 Transactions Current Revenue Estimated Increase in Revenue Estimated FY 2022 Total
Fees for New Title 971,028 $ 2,427,570 $ 4,855,140 $ 7,282,710
Fees for Replacement Title 62,483 156,208 312,415 468,623
Manufacturer Buy Back 138 345 690 1,035
Perfection of Security Interest 175,903 1,055,418 879,515 1,934,933
Salvage Title 48,738 121,845 243,690 365,535
Fee for New Registration 888,704 888,704 4,443,520 5,332,224
Totals 2,146,994 $ 4,650,090 $ 10,734,970 $ 15,385,060
In addition, the Department of Transportation has stated it would incur a one-time information
technology expense of $14,000 under the Bill.
Sources
Legislative Services Agency
Department of Transportation
/s/ Holly M. Lyons
April 14, 2021
Doc ID 12191371219137
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: 321.20, 578A.7, 321.48, 321.34, 321.46, 321.42, 321.49, 321.52, 321.50, 321.105, 321.109, 321.122