Iowa Admin. Code r. 701-250.11 - [Effective 4/23/2025] Shell businesses

(1) The 90-day temporary period of operation under Iowa Code section 321.55(2) does not apply to a vehicle owned by a shell business.

(2) Factors that indicate a business is a shell business include but are not limited to a lack of specific business activity or purpose and failure to maintain a physical location in the state in which the business is registered.

(3) If the department determines that the nonresident owner of the vehicle is a shell business, it is presumed that:

a. The Iowa resident in control of the vehicle is the actual owner of the vehicle;

b. The vehicle is subject to Iowa registration; and

c. The payment of the fee for new registration is owed by the Iowa resident.

This rule is intended to implement Iowa Code section 321.105A.

Notes

Iowa Admin. Code r. 701-250.11

ARC 5911C, IAB 9/22/21, effective 10/27/21; ARC 6508C, IAB 9/7/22, effective 10/12/22

Adopted by IAB March 19, 2025/Volume XLVII, Number 19, effective 4/23/2025