(State) Car and truck dealers are planning to fight a possible fee increase suggested by the Iowa Department of Transportation, from 5 to 6 percent for vehicle registrations. The current 5% fee is applied every time a customer buys a new or used car or truck.
The DOT says the higher fee would keep pace with the state’s current 6% sales tax and would generate an estimated $60 Million more each year for road construction projects.
The Iowa Automobile Dealer’s Association 13-member board has voted unanimously to lobby lawmakers against the increase. Spokesperson for the dealers association, Brittany Bungert says,
“We like the idea of raising the gas tax as an alternative because that’s something paid by all users of the road including our neighbors from out of state who use the road quite a bit traveling around Iowa and through Iowa.”
Currently, Iowans pay 21-cents on a gallon of gasoline. 19-cents for E-85 ethanol and 22.5-cents per gallon on diesel.
The associated represents about 400 Iowa dealers.
Iowa Radio Network