Questions and Answers

Q: When were highway revenue sources last increased in Iowa?

A: Fuel tax: The last fuel tax increase was effective Jan. 1, 1989 (excluding recent adjustments to gasoline tax rates based on gasohol usage).

Use tax: The use tax rate on the sale of motor vehicles was changed from 4 percent to 5 percent in 1993.

Motor vehicle registration fees: Effective Jan. 1, 1993, the annual fee for all motor vehicles including vehicles designated by manufacturers as station wagons, and 1993 and subsequent model years for multipurpose vehicles, except motor trucks, motor homes, ambulances, hearses, motorcycles, motorized bicycles, and 1992 and older model years for multipurpose vehicles, was increased.

Trucks, truck tractors, road tractors, and semi-trailers vehicle registration fees: In 1988 the annual registration fees for vehicles with gross weights from 3 tons to 13 tons was raised by $20 for each group.

Pickups fees: In 1988 the registration fee for pickups with a combined gross weight of three tons or less was increased from $55 dollars to $65.

Non-commercial driver's license fees: A fee of $4 per year of license validity for a non-commercial driver’s license was set in 1987. During the period beginning July 1, 2003, and ending June 30, 2008, a person applying for a new driver's license or for renewal of a driver's license is subject to a fee shall be charged a one-time surcharge of $3 in addition to the license fee. A person shall not be required to pay the surcharge more than once during the five-year period.