New truck owners will pay higher registration fees

People buying pickups trucks 2010 models or newer will be paying more to improve Iowa's roads.

According to a new bill passed by Iowa legislators last week, registration fees for owners of those new trucks will jump -- one of several vehicle registration changes that would take effect Jan. 1, 2009. Governor Chet Culver is expected to sign the bill into law this week.

The legislation is designed to bring in money to pay for Iowa's roads and bridges. Earlier the Iowa Department of Transportation (IDOT) reported a $200 million shortfall in meeting the state's infrastructure needs. This bill would bring in $11.6 million in 2009 and increase in the next few years as more new vehicles are purchased, ultimately reaching $161 million.

Le Mars farmer Mike Jaminet said he understands the need for more money to pay for roads, but he wished the legislators would have written a bill that didn't focus so much on pickups.

Up until this bill, truck owners generally paid a flat fee, like $65 for a 3-ton pickup, according to IDOT.

With the change, registrations on regular 2010 trucks and newer would be assessed by weight and value, like other vehicles are now.

For farm trucks weighing between 6-18 tons, registration fees will increase for any truck acquired after Jan. 1, 2009. Those changes start at a $20 increase to $100 for a 6-ton farm truck.

Business trucks will also see a flat fee increase starting at $150 for a 3-ton business truck.

But Jaminet would have liked to see a gas tax increase included in the bill as well, since non-Iowa residents also use Iowa roads but don't pay Iowa registration fees.

"If they're going to raise it, do it across the board," Jaminet said.

Rep. Chuck Soderberg, who voted against the bill, also wanted to see a proposal that would include other factors.

"I felt it was an incomplete bill," Soderberg said. "It really focused on one issue -- vehicle registrations -- and it significantly underfunded what the DOT needs for roads and bridges. I think there were other alternatives that should have been in there."

He would have liked to see an increase in the fuel tax, currently 20 cents per gallon.

"From what I've heard the governor was opposed to it this year but may be open to changing that next year," Soderberg said. "I think we'll be talking about this again."

The bill passed in the Iowa House 53-46 and 35-14 in the Iowa Senate.

Sen. Dave Mulder voted for the increases.

"Even when I had a pickup and was paying less even though my truck weighed more than my car, I believed fees should be equalized," he said.

In 2007, more than 772,000 3-ton trucks were registered in Iowa. While those trucks made up 19 percent of all registered vehicles in the state, they contributed only 11 percent of the annual revenue for all vehicle registrations.

Mulder added that usually, when times are good, fees and taxes should be raised. Vehicle registration fees haven't been raised for years, even when the economy was strong, so we have to do it now, he explained.

Scott Petty, general manager of Langel Plumbing and Heating in Le Mars said he was "in shock" to hear that the registration for a business truck of the model year 2010 would more than double the current fee.

"This will definitely affect us," he said, adding that he didn't think that fees for business trucks needed to be close to general use vehicles.

"They serve a different purpose -- more of a utility," he said.

Owners of other vehicles won't see a registration hike, but they will see a longer wait for their registration fee to start dropping on older vehicles starting in 2009.

"The law would extend the number of years before the registration fee decreases from nine years to 12," said Dena Gray-Fisher, spokesperson for the DOT.

The decrease won't be as big, either. In the past older vehicles eventually dropped to a $35 fee. Under this law, the minimum will be $50.

No current car owners will see an increase in their registration fee from what is it this year, Gray-Fisher said.

"If you're already down to the minimum, this is not going to affect you," she said.

Trailer owners will pay more to register their non-motor vehicles. Registration fees for trailers 2,000 pounds and lighter will double from $10 to $20. Those over 2,000 pounds will triple, from $10 to $30.

Travel trailers -- campers -- will see a 10-cent increase to 30 cents per square foot.

People who drive and restore collector cars will face a registration hike as well.

Currently, Iowa offers a "Collector" license plate for a flat $5 which allows for use only in parades or a Sunday drive, according to Priscilla Strathman, auto deputy with the Plymouth County Treasurer's Office. After Jan. 1, 2009, that option will no longer exist, she said.

In another change, vehicle title fees will also double from $10 to $20.

Le Mars resident Dave Neuroth said the increase in registration fees seemed inevitable.

"I guess until they find another way to pay for roads and bridges, they have to do it," he said.

Sixty percent of the revenue will go to the state road system. The remaining money will be split with one-half going to the counties for secondary roads and one-half going to the cities for streets.

Ryan Kowalke, of Le Mars, has been planning on selling his pickup, and after learning of the registration changes he doesn't think he'll get another truck.

"This influenced me on the possibility of buying something different," he said.