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Today's News

Culver signs bill raising vehicle registration fees

By MIKE GLOVER, THE ASSOCIATED PRESS
POSTED: April 23, 2008
DES MOINES — New car buyers will pay more in registration and other fees under a measure that Gov. Chet Culver signed into law Tuesday.

The law is expected to ultimately raise $161 million a year that will be spent on road repairs, but in its first year will bring in about $11.6 million.

The revenue will grow gradually because the law applies only to new vehicles bought after Jan. 1, 2009.

‘‘For the first time we will begin to provide the critical revenue,’’ Culver said as he signed the measure during a crowded Statehouse ceremony.

Hardest hit are pickup truck owners who for decades have enjoyed a lower fee based on vehicle weight — currently $65 for trucks weighing 3 tons or less. That was a nod to farmers who traditionally owned pickup trucks, but the change acknowledged that over the years more urban Iowans have bought trucks with no intention of using them on a farm.

Under the new measure, registration fees for trucks would be set according to their weight and value, the system used for cars.

Trucks used in businesses would pay less, but even that fee would be nearly triple the existing charge.

Car owners would pay more in a number of ways. Currently, registration fees for cars stay at an initial rate for five years, then decline as value shrinks. That period would be stretched to seven years under the new law. In addition, title fees would double from the current $10.

Lawmakers began considering options for raising money for road work after a state study concluded Iowa needed an additional $200 million in annual transportation spending. Culver limited their options before the session began when he promised to oppose any increase to the gasoline tax.

‘‘Now is not the time to raise the gas tax,’’ Culver again said as he signed the measure.

A future increase is possible, however, as legislators consider options for increasing road work funding.

‘‘I think we will continue to review the needs of the system,’’ said Senate Majority Leader Michael Gronstal, D-Council Bluffs.

Culver agreed that the transportation debate is just beginning, with long-term studies showing the state needs billions of dollars to upgrade and maintain roads and bridges.

Under the measure, 60 percent of the additional money generated would go the state’s primary road system, 20 percent to secondary roads and 20 percent to city streets.

The measure also calls on state transportation officials to conduct another study of the needs of the highway system, similar to the one that led to the fee increases signed on Tuesday.
 
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Member Comments
View Comments: | 1-5 | Post a comment
10waman
04-23-08 9:58 PM
TAX REFORM NOW - TAX REFORM NOW - TAX REFORM NOW

sande88705
04-23-08 10:57 AM
Why? Oh Why? Arn't they taxing the casinos more? Good gosh we got enough of them in this state,Let them carry the burden, and ease off the middle class and the fixed income people.

CentralIowaMan
04-23-08 6:04 AM
WHEW, I SURE AM GLAD I DRIVE A 1988 CHEVROLET TRUCK THAT IS IN AWESOME CONDITION. THAT COMMUNIST CULVER IS GONNA BREAK THE GREAT PEOPLE OF THE STATE OF IOWA WITH HIS TAX INCREASES. YOU JUST WAIT, PRETTY SOON WE WILL SEE A BREATHE MY AIR TAX!!!!

Johnny
04-23-08 4:51 AM
Great, the Dems are reaching into my pocket, yet again.....

sande88705
04-23-08 1:55 AM
MA, better hitch up the horses ,we gonna need'm

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