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Car Dealers Oppose Fee Increase

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DES MOINES, Iowa (AP) - Car and truck dealers are planning to fight a possible fee increase suggested by the Iowa Department of Transportation.

The Des Moines Register reports that the department has suggested increasing the fee to 6 percent for vehicle registrations. The current 5 percent 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 percent sales tax. It would generate an estimated $60 million more each year for road construction projects. Iowa does not impose a sales tax on car and truck purchases.

The Iowa Automobile Dealer Association's 13-member board has voted unanimously to lobby lawmakers against the increase. The associated represents about 400 Iowa dealers.

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