Bills › 89th General Assembly
Reducing annual motor vehicle registration fees and annual registration plate fees for disabled veterans
Sponsored by the House Veterans Affairs Committee
Topics:TaxesTransportationVeterans & military
Same legislation: SSB 3036, HF 2194, HSB 643, HF 2308, SF 2261, SSB 3135, SF 2290, HF 2433
Where it is now
- Done: IntroducedFebruary 1, 2022
- Done: SubcommitteeFebruary 9, 2022
- Done: House committeeFebruary 15, 2022
- Done: Passes the HouseApril 4, 202297–0
- Skipped: Senate committeeSkipped
- Done: Passes the SenateMarch 9, 202248–0
- Stopped: To the GovernorDied when the General Assembly ended
- Next: Signed into law
Died when the session ended The 2022 session adjourned on May 24, 2022, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary Disabled veterans can pay less for their annual vehicle registration and special license plates. The amount they save depends on their disability rating from the U.S. Department of Veterans Affairs. This discount applies to one vehicle owned by the veteran.1
Read the official explanation
This bill reduces the annual motor vehicle registration fee for a disabled veteran by a percentage equal to the veteran’s service-related disability rating, as determined by the United States department of veterans affairs, for one vehicle owned by the disabled veteran. The bill also reduces the annual fee due on special or personalized registration plates for the vehicle, if any, by the same percentage.
Changed since by amendments H-8311, S-5047; see Amendments.
Fiscal note
AI summary This bill expands motor vehicle registration fee exemptions and free license plates to include veterans with a service-related disability rating of 50.0% or higher. It is estimated to reduce revenue to the Road Use Tax Fund by $3.1 million per year. The Department of Transportation may also need an increase in appropriations of $92,000 and 2.0 full-time equivalent positions during the first year, with an ongoing cost of 1.0 full-time equivalent position in subsequent years.3
Read the fiscal note
Description
Senate File 2261 broadens the current exemptions for paying motor vehicle registration fees and applying for a persons with disabilities (PWD) parking permit to include veterans with a service-related disability rating of 50.0% or higher. The Bill also amends Iowa Code section 321.105 and requires the Department of Transportation (DOT) to issue one free set of regular vehicle or qualifying service type registration plates to veterans with a service-related disability rating of 50.0% or higher. Service-related disability ratings are classified by the U.S. Department of Veterans Affairs.
Background
Under current federal law 38 U.S.C. §3901 – 3904, veterans who experience the loss of extremities, severe injury/blindness to an eye, or a severe burn injury are eligible to receive an automobile from the federal government. Iowa Code section 321.105(5) exempts veterans receiving an automobile or other vehicle from the federal government under 38 U.S.C. §3901 – 3904 from paying a motor vehicle registration fee and from the need to apply for a PWD parking permit. Veterans also receive one free set of regular or qualifying service type registration plates.
Assumptions
- As of December 2021, 22,372 Iowa veterans were classified at a 50.0% or higher disability rating. There were 16,660 Iowa veterans classified between 50.0% and 90.0% disability for exemption, leaving 5,712 at the 100.0% disability rating.
- Vehicles currently pay an average annual registration fee of $140.
- The 22,372 veterans who are eligible under this Bill will use the registration fee exemption. Only one vehicle is eligible for the exemption for each eligible veteran.
- There are approximately 355 active disabled veteran plates.
- The DOT has estimated that 2.0 full-time equivalent (FTE) positions are required to process additional applications. One FTE position is estimated to be required on a permanent basis.
Fiscal Impact
Senate File 2261 is expected to reduce revenue to the Road Use Tax Fund (RUTF) by $3.1 million per year. The DOT may require an increase in appropriations of $92,000 and 2.0 FTE positions to process additional applications the first year the Bill is enacted. An ongoing cost of 1.0 FTE position may be required to process additional applications in subsequent years. The DOT operations budget is funded in the annual Transportation Appropriations Bill. The DOT indicates that additional responsibility cannot be absorbed by the current appropriation.
Sources
- Department of Transportation, Motor Vehicle Division
- Department of Veterans Affairs
- Disabled Veteran Exemption from Vehicle Registration Fees · February 16, 2022
Family tree
Tried before
89th General Assembly
Earlier and later bills are matched by wording or an identical title.
Tried before
This idea has been filed in an earlier General Assembly. None got through a chamber.
- SF 185 Relating to motor vehicle registration fees for disabled veterans88th General Assembly · Approved by committee · same titleCleared committee
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