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New Year Brings New Fees

By Staff | Jan 20, 2009

With the New Year almost a month old, some folks in the area discovered a new feature to the New Year – an increase in licensing fees for motor vehicles. The Iowa Legislature approved several changes in motor vehicle licensing fees in their 2008 session that have led to some major increases in licensing costs.

The biggest change that occurred on Jan. 1 was for those persons registering and licensing pickup trucks for the first time. Beginning with the 2010 license year, pickups will no longer be licensed at $35 per year, but will instead be licensed at the same rate as automobiles and multi-purpose vehicles, with those fees decreasing with the age of the vehicle and number of registrations.

The registration fees for motor vehicles that were licensed as of Dec. 31, 2008, have been grandfathered in at the old rates, but new vehicles and new licenses will be subject to new schedules created by the Iowa Department of Transportation. One of the most major changes will come in the reduction of licensing fees, according to the age and number of registrations.

Under the old licensing guidelines, fees were reduced after five years, but under the new guidelines, those licensing fees will not decrease until seven years have elapsed.

The costs for tonnage licensing for trucks will also be increasing, as will the costs of various title fees. A regular vehicle title cost will rise from $15 to $25, while a salvage title will rise from $7 to $15. Replacement titles will also rise from $7 to $15 and the cost for a trailer license will rise from 20 cents per square foot to 30 cents per square foot.

Information on the new vehicle registration rates and formulas is available from the Iowa Department of Transportation website at www.iowadot.gov, or by going to www.IowaTaxandTags.gov.

Persons with specific questions can also contact the Palo Alto County Treasurer’s Office at 712-852-3844.