Iowa Admin. Code r. 701-250.14 - [Effective 4/23/2025] Leased vehicles

(1) The fee for new registration on leased vehicles is a liability of the owner (lessor) of the vehicle and not the lessee.

(2) Owners/lessors may require the lessee to reimburse the owner/lessor, by adding the fee for new registration to the monthly lease payment or by requiring the lessee to pay the fee for new registration up front.

(3) When a lessee chooses to terminate a lease and purchase the vehicle being leased, the purchase is subject to a fee for new registration on the purchase price. There is no refund of the fee for new registration paid on the lease price.

(4) If an existing lease is transferred to another lessee, no additional fee for new registration is due so long as the title to the vehicle is maintained by the same lessor and the terms of the lease are not changed.

(5) When a vehicle with an existing lease established in another state is registered in Iowa, the lease price is calculated as established in Iowa Code section 321.105A(3) "b" and is then prorated for the number of months remaining on the lease. No credit is allowed for any fee or tax paid to another state.

(6) If a vehicle is leased between affiliates as defined in Iowa Code section 321.105A(3) "f"(3)(a), no fee for new registration is due on the lease so long as the fee was paid by the lessor prior to the lease.

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

Notes

Iowa Admin. Code r. 701-250.14

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