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Property Tax

2021 Updates to the Motor Vehicle Fee for New Registration

In 2008, the legislature moved the then-use tax imposed on vehicle registration to Iowa Code section 321.105A and renamed it to the “fee for new registration.” The Iowa Department of Revenue (IDR) and the Iowa Department of Transportation (DOT) often field questions about confusing provisions from taxpayers seeking to register their vehicles as well as county treasurers tasked with collecting the fee. IDR received input from DOT before submitting revisions to Iowa Code section 321.105A to the legislature.

The revisions improve the administration of and compliance with the fee for new registration. They were enacted by the legislature, signed into law by Governor Reynolds, and took effect July 1, 2021.

In addition to the changes to the statute, IDR has published administrative rule revisions to supplement the law. The administrative rules include many examples, some of which were taken from the UT-510 manual. View Iowa Administrative code 701.250.

Discontinue the use of the UT-510 manual as guidance and refer to the rules instead.

Vehicle Rental Tax

The rental of motor vehicles in Iowa is subject to sales or use tax. The rental may also be subject to the Iowa automobile rental tax.