Iowa Admin. Code r. 701-250.17
EXAMPLE: Person A, a resident of Moline, Illinois, purchased a vehicle from a dealership in Chicago, Illinois, one week before Person A moved to Davenport, Iowa. The vehicle was registered in Illinois. Person A was not aware at the time of purchase that Person A's employer would transfer Person A to Iowa. Person A's intent was not to use the vehicle in Iowa; therefore, Iowa's fee for new registration is not due.
EXAMPLE A: Person L is an Iowa resident. While in Nevada, Person L purchased a new camper for $20,000. Nevada did not require Person L to pay a state fee for new registration or a state sales, use, or occupational tax. Person L brought the camper back to Iowa. The camper requires an Iowa title and registration. Since no state fee for new registration or state sales, use, or occupational tax was paid to the state of Nevada, Iowa's fee for new registration is due on the purchase price of $20,000.
EXAMPLE B: Person Q is an Iowa resident and spends the winter months in Florida. Person Q decides to purchase anew vehicle in Florida for $35,000. Person Q is required to pay 5 percent Florida state sales tax. Person Q chooses not to title or register the vehicle in Florida. After spending the winter months in Florida, Person Q returns to Iowa and brings the new vehicle. Since Person Q had to pay a 5 percent Florida state sales tax, Person C receives a credit for that amount against Iowa's fee for new registration.
EXAMPLE C: Iowa resident Person W purchases a vehicle for $25,000 while in Arizona. Person W was required to pay an Arizona state sales tax of 2 percent and a county tax of 1 percent. Person W returns to Iowa with the vehicle. The bill of sale shows a breakdown as follows:
Purchase Price......................................... | .$25,000 |
Arizona State Sales Tax.......................... | ......$500 |
Arizona County Tax................................ | ......$250 |
Total Amount Due................................... | $25,750 |
When Person W titles and registers the vehicle in Iowa, the 5 percent Iowa fee for new registration would be $1,250. Person W receives credit only for the Arizona state sales tax of $500 but not the county sales tax. Iowa fee for new registration is as follows:
Iowa Fee for New Registration.................... | ............$1,250 |
Less Arizona State Sales Tax....................... | ...............$500 |
Iowa Fee for New Registration Due............ | ................$750 |
EXAMPLE D: Iowa resident Person Z purchases an $80,000 vehicle in California and is required to pay a 9 percent California state sales tax of $7,200. Person Z returns to Iowa with the vehicle. The bill of sale shows:
Purchase Price.............................. | ............$80,000 |
California State Sales Tax............ | ..............$7,200 |
Total Amount Due........................ | ............$87,200 |
When Person Z titles and registers the vehicle in Iowa, the 5 percent Iowa fee for new registration would be $4,000. Since Person Z paid a California state sales tax of $7,200, which was more than the Iowa fee for new registration, the Iowa fee for new registration is not due.
This rule is intended to implement Iowa Code section 321.105A as amended by 2021 Iowa Acts, Senate File 366.
Iowa Admin. Code r. 701-250.17