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Former State Rep. Marv Diemer, R-Cedar Falls, says pickups trucks should pay the same registration fee as cars.
~ADVERTISING~
Higher vehicle registation fees proposed to fix roads
By WHITNEY WOODWARD, Courier Des Moines Bureau, and Courier staff
DES MOINES --- Democrats took a first step toward filling the state’s roads and bridge fund shortage Wednesday by calling for lawmakers to evaluate a plan which would increase vehicle registration fees.
Part of that proposal includes higher fees for pickup trucks, something a former state legislator from Cedar Falls, Marv Diemer, has been lobbying for for years -- but he said today the current proposal doesn't go far enough..
The majority of pickup truck owners currently pay a $65 annual fee, which decreases with the age of the vehicle, bottoming out at $35. Car, minivan and SUV drivers pay more, because their registration fee is based on a weight and vehicle value formula, although the figure also decreases with age.
Under the proposal, new pickup trucks that aren't used for commercial or agricultural activities would be placed on the same fee formula as cars, and the minimum registration fee would be upped to $50. Pickups already registered in the state would be grandfathered into the cheaper schedule.
The decreasing formula for cars and those new pickups would be altered, also, so it brings in more money over the life of the vehicle.
However, Diemer, a Republican, said all pickups should pay the higher fee. He said the lower fee for pickups used in commercial or agricultural activities still strikes him as unfair.
"People who use their car for their business, they don't get an exemption. My minister, my real estate agent --- he doesn't get a $65 license, he pays the full rate," Diemer said. "What about the guy who lives on the farm but really works at John Deere, and leases out his land? Mostly the reason for the pickup is because he hauls his boat over to the Mississippi to go boating."
The primary component of the overall proposed road funding measure is a hike in the annual vehicle registration fees Iowans pay.
The proposal also includes a 50 percent hike in driver’s license fees, a hike in the annual registration fee large agricultural truck owners pay, and a boost in trailer fee registration costs.
While the bill’s drafting in no way guarantees a transportation funding plan will be approved this session, it's a critical move toward resolution on an issue that has gridlocked the Capitol for more than a year.
"It's time to do it," Sen. Matt McCoy, D-Des Moines, said. "We're doing it, we're drafting it, we're moving forward."
The funding proposal will incorporate several suggestions first put forth by the Iowa Department of Transportation in a December 2006 report which outlined the need for an additional $200 million annually to pay for road and bridge construction.
Lawmakers have struggled to reach consensus on how best to raise the cash after Gov. Chet Culver’s dismissed a plan to hike the state's gas tax. Several Democrats have said they'd like to see a bipartisan solution, out of concern a vote to increase taxes and fees will be held against them come Election Day.
The to-be-drafted bill would generate an estimated $147 million --- about three-quarters of the projected funding hole --- by 2012. An additional $50 million could be generated if lawmakers approve an expansion of the school infrastructure local option, or SILO, tax, McCoy said.
House Transportation Committee Chair Geri Huser, D-Altoona, said her committee will unveil a similar funding plan which would lock in the rates users are paying on their current vehicles. Thus, Iowans wouldn’t be hit with a fee increase on a vehicle they already own, although that means the funds wouldn’t be raised as quickly.
"Everything would be grandfathered in, everything would be prospective," Huser said.
Citing Democrats' inaction thus far, Senate Republicans offered their own partial funding solution earlier Wednesday.
The Senate GOP's plan centers on moving $90 million in state gambling revenues to infrastructure needs.
But unlike the other proposals, the Republican plan wouldn’t require a fee or tax increase, said Senate Minority Leader Ron Wieck, R-Sioux City.
McCoy quickly dismissed the GOP's plan as a "far out" proposal that wouldn’t see the light of day.
"It's bozo," McCoy said. "It's not going to happen."
Courier staff writer Jens Manuel Krogstad contributed to this story.
Whitney Woodward can be reached at (515) 243-0138 or whitney.woodward@lee.net.
{M3
Part of that proposal includes higher fees for pickup trucks, something a former state legislator from Cedar Falls, Marv Diemer, has been lobbying for for years -- but he said today the current proposal doesn't go far enough..
The majority of pickup truck owners currently pay a $65 annual fee, which decreases with the age of the vehicle, bottoming out at $35. Car, minivan and SUV drivers pay more, because their registration fee is based on a weight and vehicle value formula, although the figure also decreases with age.
Under the proposal, new pickup trucks that aren't used for commercial or agricultural activities would be placed on the same fee formula as cars, and the minimum registration fee would be upped to $50. Pickups already registered in the state would be grandfathered into the cheaper schedule.
The decreasing formula for cars and those new pickups would be altered, also, so it brings in more money over the life of the vehicle.
However, Diemer, a Republican, said all pickups should pay the higher fee. He said the lower fee for pickups used in commercial or agricultural activities still strikes him as unfair.
"People who use their car for their business, they don't get an exemption. My minister, my real estate agent --- he doesn't get a $65 license, he pays the full rate," Diemer said. "What about the guy who lives on the farm but really works at John Deere, and leases out his land? Mostly the reason for the pickup is because he hauls his boat over to the Mississippi to go boating."
The primary component of the overall proposed road funding measure is a hike in the annual vehicle registration fees Iowans pay.
The proposal also includes a 50 percent hike in driver’s license fees, a hike in the annual registration fee large agricultural truck owners pay, and a boost in trailer fee registration costs.
While the bill’s drafting in no way guarantees a transportation funding plan will be approved this session, it's a critical move toward resolution on an issue that has gridlocked the Capitol for more than a year.
"It's time to do it," Sen. Matt McCoy, D-Des Moines, said. "We're doing it, we're drafting it, we're moving forward."
The funding proposal will incorporate several suggestions first put forth by the Iowa Department of Transportation in a December 2006 report which outlined the need for an additional $200 million annually to pay for road and bridge construction.
Lawmakers have struggled to reach consensus on how best to raise the cash after Gov. Chet Culver’s dismissed a plan to hike the state's gas tax. Several Democrats have said they'd like to see a bipartisan solution, out of concern a vote to increase taxes and fees will be held against them come Election Day.
The to-be-drafted bill would generate an estimated $147 million --- about three-quarters of the projected funding hole --- by 2012. An additional $50 million could be generated if lawmakers approve an expansion of the school infrastructure local option, or SILO, tax, McCoy said.
House Transportation Committee Chair Geri Huser, D-Altoona, said her committee will unveil a similar funding plan which would lock in the rates users are paying on their current vehicles. Thus, Iowans wouldn’t be hit with a fee increase on a vehicle they already own, although that means the funds wouldn’t be raised as quickly.
"Everything would be grandfathered in, everything would be prospective," Huser said.
Citing Democrats' inaction thus far, Senate Republicans offered their own partial funding solution earlier Wednesday.
The Senate GOP's plan centers on moving $90 million in state gambling revenues to infrastructure needs.
But unlike the other proposals, the Republican plan wouldn’t require a fee or tax increase, said Senate Minority Leader Ron Wieck, R-Sioux City.
McCoy quickly dismissed the GOP's plan as a "far out" proposal that wouldn’t see the light of day.
"It's bozo," McCoy said. "It's not going to happen."
Courier staff writer Jens Manuel Krogstad contributed to this story.
Whitney Woodward can be reached at (515) 243-0138 or whitney.woodward@lee.net.
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kraut wrote on Jan 31, 2008 12:16 PM:
" Anyway to make a buck wow raise the taxes then raise registration what next. I have a friend in Ark. that only pays 28 dollars for his truck registration and 28 dollars for his van but yet Iowa just keeps wanting to tax tax tax, glad my wife is retiring next year so we can move out of the state. "
exnavyman wrote on Jan 31, 2008 1:02 PM:
" I just want everyone to realize that these are the Dummycrats that most of you elected. I am proud to say that Culver was not my choise, nor were any of the other liberal bubbleheads in Des Moines. All I can say is thanks for helping to bring the Republicans back to power Chet. "
glw wrote on Jan 31, 2008 1:16 PM:
" It's about time this outdated policy was discarded.
Every vehicle should be taxed the same. Period.....end of discussion.
"
Every vehicle should be taxed the same. Period.....end of discussion.
"
Kris wrote on Jan 31, 2008 1:52 PM:
" Iowa's answer to everything.....tax, tax and more tax. I cant wait to retire as well and get out of this state. I think trucks should have to pay the same as the rest of us. What happens to all the money from the lottery and the increase in state and local taxes? Someone is getting rich and it sure isnt the hell me! "
taxpayer wrote on Jan 31, 2008 2:10 PM:
" Lets make evrything fair. Now wheres the helmet law for motorcycles. "
timberlake wrote on Jan 31, 2008 2:19 PM:
" And just who was it voted for all these taxes? Remember, taxes are like the grave, once in, never out. Look very closely at Culver's budget and you'll see just where the taxes are really going. Elections are expensive and must be paid for.........let's see, NEA, AFSCME, UAW and more, are standing in line waiting for their share of your tax dollars promised to them by the Democrat Party. "
skelloch wrote on Jan 31, 2008 2:33 PM:
" I agree that registration fees for Pickups and passenger vehicles should be the same, but regardless of age. That would level the cost especially for the "middle class". A good example is where I live the fee is $65 for either one, and might vary $5 a year additional for a "bridge" fee based on the county where you live. None of those several-hundred dollar registration fees for new and safer vehicles. Perhaps cutting spending would offset the difference? No? Gosh we don't have a State income tax either. I guess we are in deep trouble. "
scoot wrote on Jan 31, 2008 3:14 PM:
" Good, it's about time. I'm sick of paying $300 for my registration and my neighbor paying $65 for his $40,000 Hemi powered pickup that he uses to get back and fourth from a non-farming related job in the City. What a joke this registration thing has been for years. I'll bet Ford is lobbying hard against it though since the F-150 is the most popular selling pick-up in the US. See how much Ford has given to the people in government here in the state and maybe you'll see why they're still $65. "
scoot wrote on Jan 31, 2008 3:15 PM:
" Exnavyman, did you just say Dummycrats and then spell the word "choice" with an "s". "
pantherfan1 wrote on Jan 31, 2008 4:28 PM:
" Think about it raise it on the cars, trucks, etc that do the most damage to the roads like semi's or older cars that leak stuff and pollute more. I too am sick of paying a $425 reg fee, if anything I think there should be one set fee for all! "
manureman wrote on Jan 31, 2008 6:44 PM:
" .. I farm a small farm, but also have to work in town to make ends meet. I drive an old pickup, and use it for alot of things. It's not worth much, and is all ruted out, but it serves its purpose. If they vote pickup registrations up, they should get rid of the ILLEGAL practivce of paying sales tax on a used vehicle. That is definately illegal, per the constitution! Maybe we should look at other states, like SOuth Dakota, where there is no sales tax. Then I wouldn't mind paying a higher registration. Lastly, why is Marv Diemer lobbying for this? What's in it for him? He should go back to his comfortable "retirement home" and keep his mouth shut! You can surely tell he never had to work very hard for a living, like alot of farmers have to do. "
Enough1 wrote on Jan 31, 2008 7:25 PM:
" If you want a $65 registration fee buy a pickup. The state is not stopping you. It is your choice.
The pickup owner gets half the gas mileage of a car owner, so they pay more in gas tax which goes to road repair. Maybe car owners should pay double the gas tax to make it comparable to the pickup owner. What a novel idea. Pickup owners pay $3.00 per gallon for gas and car owners pay $3.50 per gallon for gas. "
The pickup owner gets half the gas mileage of a car owner, so they pay more in gas tax which goes to road repair. Maybe car owners should pay double the gas tax to make it comparable to the pickup owner. What a novel idea. Pickup owners pay $3.00 per gallon for gas and car owners pay $3.50 per gallon for gas. "
Out-of-towner wrote on Jan 31, 2008 7:46 PM:
" To kraut: I now live in Arkansas and we DO pay only $28 for vehicle license BUT in addition we pay Personal Property Tax which is levied on cars, truck, boats, motorcycles, campers, etc... BUT it's still less on my new '08 Buick than a 10 year old Oldsmobile in I*O*W*A*. I wonder why? Did your friends mention that our real estate / property tax is about 50% less than in 'loo-ville? "
jcbr wrote on Jan 31, 2008 10:14 PM:
" years ago in gov ray s time the road use tax was put in the general fund / was it ever replaced in the road fund ? good idea to use casio money for transportion funds / transportion road design i think is wasted ex the hi-way 57 and viking rd city rezones then have to redesign intersection / another thing is these weigh stations for building maning and maintenace / most of the time the re closed wouldnt portable scales be cheaper / the state gov should live within their means on spending / tax tax tax remember this at election time no matter which party / then you wonder why people leave the state you can bet taxes is part of reason / remember the Boston tea party maybe its time for another one / i think if you cant run a business become a politican you can always tax something to cover your loses / tnks jcbr "
kraut wrote on Jan 31, 2008 11:26 PM:
" To out of towner, yes they did and even though you have those other taxes they say its still better to live in Ark. the in Waterloo Thats why I am going to move as soon as my wife retires I am sick of this tax tax tax "
enough1 wrote on Feb 1, 2008 5:12 AM:
" Scoot, I believe Exnavyman intended to spell choice. Did you intend to say "back and Fourth" or "back and Forth"? "
hillaryc wrote on Feb 1, 2008 7:01 AM:
" I understand the people who want their neighbors truck to be taxed more, that is a typical human reaction,,, but you folks do realize that this bill will increase the registration on your vehicle also,, here is what they wrote "The decreasing formula for cars and those new pickups would be altered, also, so it brings in more money over the life of the vehicle."
They are also going to get some more out of us here "The proposal also includes a 50 percent hike in driver’s license fees, a hike in the annual registration fee large agricultural truck owners pay, and a boost in trailer fee registration costs."
They focus you on your neighbor, whom they know you want to be treated like you, so then they can get your more of your money and you won't even know it
"
They are also going to get some more out of us here "The proposal also includes a 50 percent hike in driver’s license fees, a hike in the annual registration fee large agricultural truck owners pay, and a boost in trailer fee registration costs."
They focus you on your neighbor, whom they know you want to be treated like you, so then they can get your more of your money and you won't even know it
"
waterloo reader wrote on Feb 1, 2008 7:24 AM:
" Arkansas has lower taxes because they aren't paying for a first class education for their residents. They also appear to be saving money on dental costs for indigent residents. It's better for us to pay more in taxes and get a first class education system. "
Out-of-towner wrote on Feb 1, 2008 7:56 AM:
" Whoa...hold on waterloo reader. Why the shift to the dental costs? What does that have to do with vehicle registration? Stereo-typing 'folks' from Arkansas is uncalled for. The 'locals' here are the nicest, most polite people we've met, teeth or no teeth. The rudest 'folks' we've met are from (guess where) IOWA! So you stay in your comfort zone ('Loo-ville) and I'll stay in mine. By the way, temps are in the 60's this week... "
exnavyman wrote on Feb 1, 2008 8:44 AM:
" Scoot, so sorry about the TYPO when I spelled "choice" with an "s", but obviously you got my point. Typical liberal response when you know that I am correct. You seem to be a typical tax, tax, tax individual as long as someone else is taxed higher than you to make you feel better. "
Reader54 wrote on Feb 1, 2008 9:21 AM:
" Chet already has a way for YOU to spend your tax rebate checks!!!! "
gmaro wrote on Feb 1, 2008 9:26 AM:
" All Culver has done since taking office is raise taxes on anything he can think of. I'd like to know where all the money is from the Lottery that was supposed to help education and roads etc. More lies by politicians. "
mathman wrote on Feb 1, 2008 9:30 AM:
" How about lowering the initial registration fees on cars while raising them on trucks to make them the same.
Oh, and manureman, there is no sales tax on car sales in Iowa. There is a use tax however. "
Oh, and manureman, there is no sales tax on car sales in Iowa. There is a use tax however. "
scoot wrote on Feb 1, 2008 11:33 AM:
" What has Culver raised taxes on besides cigarettes? Boo hoo...paying more for cancer sticks that kill people. I say pay more per pack, because of you I have to pay higher health insurance premiums. Liberals taxing....what about the proposed sales tax holiday for big ticket items such as TV's by the Republican? That will cost far more than any tax increases by Culver. And what is your solution exnavyman? Are you going to cut taxes like the current administration so we have the largest deficit in US history and we're still in a recession? You people are going to have to get over the fact that being a liberal doesn't mean tax, tax, tax. It does mean having an open mind, educating oneself on the issues, reform, and progression. Too often, as I imagine in your case, being a conservative means just doing whatever your parents did and not asking any questions. Conservatives are great, but only the ones who research and think for themselves. If a person does research and that's the path they choose, then that's respectable. And that is a liberal viewpoint as well. "
scott wrote on Feb 1, 2008 11:37 AM:
" The democrats are relentless with increasing of the taxes! Rediculous! "
FedUp wrote on Feb 1, 2008 11:44 AM:
" You know, this is just the beginning. Last year it was all about raising the tax on tobacco. One week, my smokes cost $13.32. The following week they were $26.70. If you're any good at math at all, you'll see the tax ended up OVER 100%. Now, we don't haveenough money to maintain our roads and bridges. Also, we approved a one cent sales tax for our schools. This is called an "option tax" and is to voted on every so often to continue or repeal as the citizens deem necessary. Now they want to take the "option" away and make it permanant. They say when all the schools are up to par, it will be used to reduce property taxes. You KNOW that's a damned lie. In this story about road funds, is a paragraph which states we could get another $50 million if the SILO bill is passed. This session isn't even two weeks old and already they're trying to use SILO money for other purposes. If any of these crooks and liars are re-elected it will be a miracle!
"
"
wcf reader wrote on Feb 1, 2008 1:15 PM:
" vehicles should pay the same registration fees. there should be a flat formula used to calculate the fees, whether value or year or whatever. let the gas tax money be the difference as far as vehicles paying more or less. "
TheShow wrote on Feb 1, 2008 1:46 PM:
" mathman, when was the last time you bought a car in Iowa? I know I paid sales tax on every car I have ever purchased.
If you buy from a dealer you pay sales tax directly. If you buy from an individual, that individual cannot collect sales tax, but when you go register the car and transfer the title, the state gets all of the information necessary to assess tax on the sale. I believe there is actually a seperate line on the state income tax form to enter this type of tax that is owed.
Registration fees, personal property tax, what ever you want to call it, it all boils down to the same thing, finding ways to collect more revenue for the state. I agree with other posters. We have the huge voluntary tax called the lottery, where is that money going? "
If you buy from a dealer you pay sales tax directly. If you buy from an individual, that individual cannot collect sales tax, but when you go register the car and transfer the title, the state gets all of the information necessary to assess tax on the sale. I believe there is actually a seperate line on the state income tax form to enter this type of tax that is owed.
Registration fees, personal property tax, what ever you want to call it, it all boils down to the same thing, finding ways to collect more revenue for the state. I agree with other posters. We have the huge voluntary tax called the lottery, where is that money going? "
taxpayer wrote on Feb 1, 2008 6:17 PM:
" I know where the lottery money went. It went to cities in the form of visioniowa grants for them to build ridiculous projects that cost more than they are worth and to raise more taxes to pay for them "
scoot wrote on Feb 2, 2008 12:09 AM:
" For what it's worth to you people who think low taxes are the way to go. The countries with the lowest taxes in the world are Mexico and Republic of Korea....enough said!!!! "
shouldbemayor wrote on Feb 2, 2008 9:24 AM:
" So since this think tank has all the answers, what do we do to fix our roads? We apparently need an additional 200 million to fix roads and bridges, and honestly after driving across the state last week, I think that number might be low. What do we cut out? Where does the money come from? We could cut out welfare, but then we would have to fund more agencies for the homeless. We could cut teacher pay, but then we would have to fund programs to create jobs for the teachers that quit. We could cut, cut, cut until we all join the march out of the state.
It is simple. NOBODY likes taxes, but until we figure out a way to pay for things with Monopoly money, we have to have them. Either income or consumption. Schools, roads, hosptitals......many things DEPEND on funding and don't exist without them.
FYI, I believe this is not a Democrat or Republican issue. I don't remember my taxes EVER going down under either parties administration. I kept hearing they were going down, yet I keep paying the same. Both parties just like to point fingers at the other and cry "tax." It's easy to get folks to rally behind them against the "evil spenders of YOUR money." "
It is simple. NOBODY likes taxes, but until we figure out a way to pay for things with Monopoly money, we have to have them. Either income or consumption. Schools, roads, hosptitals......many things DEPEND on funding and don't exist without them.
FYI, I believe this is not a Democrat or Republican issue. I don't remember my taxes EVER going down under either parties administration. I kept hearing they were going down, yet I keep paying the same. Both parties just like to point fingers at the other and cry "tax." It's easy to get folks to rally behind them against the "evil spenders of YOUR money." "
scoot wrote on Feb 2, 2008 9:45 AM:
" The show, actually mathman is correct. Any vehicle subject to a registration in Iowa is exempt from sales tax, but the tax is a use tax. This is why vehicles in Iowa are not taxed at the current rate of, lets say 7% in our local area. I think the rate is 5%. "
mathman wrote on Feb 2, 2008 9:49 AM:
" Sorry TheShow, but you are wrong. Dealerships do not collect sales tax on car purchases, but rather collect use taxes. This is why they are not subject to local option sales taxes.
From the Iowa Department of Revenue Website (http://www.iowa.gov/tax/taxlaw/taxtypes.html#MVUT):
Iowa Motor Vehicle Use Tax
Description: The gross receipts from sales of vehicles subject to registration are exempt from sales tax but subject to motor vehicle use tax. The tax is paid upon registration to the county treasurer. It is not uncommon for the dealership to collect and remit the tax to the county treasurer on behalf of the buyer.
Tax Rate: 5 percent
"
From the Iowa Department of Revenue Website (http://www.iowa.gov/tax/taxlaw/taxtypes.html#MVUT):
Iowa Motor Vehicle Use Tax
Description: The gross receipts from sales of vehicles subject to registration are exempt from sales tax but subject to motor vehicle use tax. The tax is paid upon registration to the county treasurer. It is not uncommon for the dealership to collect and remit the tax to the county treasurer on behalf of the buyer.
Tax Rate: 5 percent
"
jimbo wrote on Feb 2, 2008 10:50 AM:
" For what it's worth, and to give you IOWA people (especially Waterloo) some perspective: we retired to NW Arkansas two years ago and it is paradise on earth. I have a double lot with a $350,000 home and my property taxes are $2100 PER YEAR! I have local access to seven lakes and eight golf course and countless year-round natural amenities. I have said it many times, somewhere in Waterloo and Black Hawk County there is a tax bucket with a huge hole in it; someone is doing something wrong. There isn't enough money in the world for me to move back to Waterloo.
When we first moved to Arkansas, we needed two new Arkansas driver's licenses, and we had to register and re-title three vehicles, a boat and a boat trailer. The check we wrote to cover all these transactions was about 30% of what it would have been in Iowa. Why?
And about the Arkansas schools: they are new, they are beautiful, and they are to die for.
"
When we first moved to Arkansas, we needed two new Arkansas driver's licenses, and we had to register and re-title three vehicles, a boat and a boat trailer. The check we wrote to cover all these transactions was about 30% of what it would have been in Iowa. Why?
And about the Arkansas schools: they are new, they are beautiful, and they are to die for.
"
jimbo wrote on Feb 2, 2008 11:20 AM:
" To Mathman: boy, I'll bet you're a riot at a party, disecting evryone's semantics and choice of words.
Here's the way 99.99% of us ordinary people see it: we buy a car at a dealership, he tacks on 5%, we call it a sales tax. It happens at the time of the sale, and it's a tax, we call it a 'sales' 'tax'. Sorry if you have a problem with that... wait... no I'm not.
Get a life. "
Here's the way 99.99% of us ordinary people see it: we buy a car at a dealership, he tacks on 5%, we call it a sales tax. It happens at the time of the sale, and it's a tax, we call it a 'sales' 'tax'. Sorry if you have a problem with that... wait... no I'm not.
Get a life. "
scoot wrote on Feb 2, 2008 1:58 PM:
" The State of Arkansas is run by Democrats too. But people up here would freak out because there's an additional 4% tax due on mixed drinks at the time of purchase. OH NO!!! Property taxes are lower in Arkansas but you have to remember that median income is about $13,000 less too. The lower property taxes don't make up for the drastic difference in pay. "
scoot wrote on Feb 2, 2008 3:01 PM:
" Jimbo, manureman said that paying a sales tax on a used vehicle was illegal and mathman pointed out that it's not a sales tax. Mathman wasn't disecting words, he was pointing out an obvious error by manureman. And I'm not sure where manureman sees that taxation on a used vehicle should be illegal. It's property, and property is subject to a tax plain and simple. "
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JC wrote on Jan 31, 2008 12:14 PM: