Iowa Code 516D.3A – Vehicle license recovery fee
Current as of: 2023 | Check for updates
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1. A rental company may include separately stated charges in a rental agreement pursuant to the provisions of this chapter for the recovery of fees paid to this state to license, title, register, and plate rental vehicles.
Terms Used In Iowa Code 516D.3A
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Rental agreement: means a written contract containing the terms and conditions for the use of a rental vehicle by a customer for a term of sixty days or less. See Iowa Code 516D.3
- Rental company: means a person in the business of providing rental vehicles to customers. See Iowa Code 516D.3
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
- Transaction: means a sale, trade, exchange, transfer, payment, or conversion of a digital asset or any other property or any other action or set of actions occurring between two or more persons relating to the conduct of business, commercial, or governmental affairs. See Iowa Code 554E.1
- Vehicle license recovery fee: means a charge that may be separately stated and charged on a vehicle rental transaction originating in this state to recover fees paid to this state by a rental company to license, title, register, and plate rental vehicles. See Iowa Code 516D.3
- year: means twelve consecutive months. See Iowa Code 4.1
2. If a rental company includes a vehicle license recovery fee as a separately stated charge in a rental transaction, the amount of the fee shall represent the rental company’s good-faith estimate of the rental company’s average per vehicle portion of the rental company’s total annual titling and registration fees paid to this state.
3. If the total amount of the vehicle license recovery fees collected by a rental company under this section in any calendar year exceeds the rental company’s actual fees paid to this state to license, title, register, and plate rental vehicles for that calendar year, the rental company shall do both of the following:
a. Retain the excess amount to be held in a vehicle license recovery fee fund as a consumer credit for the following year.
b. Lower the estimated average per vehicle titling and registration charge for the following calendar year by the corresponding amount in the vehicle license recovery fee fund.