Iowa car and truck dealers are planning to fight a possible fee increase for vehicle registrations.
By raising the fee by 1%, the DOT believes it would generate an estimated $60 million more each year for road maintenance and construction. Local car dealers such as owner of Deery Brothers in West Burlington, Brad Deery, is completely against the proposed hike..
“I disagree with that increase. I think it’s a bad move. Anytime you have an increase in taxes, i’m not for it. 5% is a fair amount, it’s been that way for a long time. Anymore than that will hurt commerce, business, new car, and used car sales. I think that additional 1% on a $40,000 car is a lot of money.”
The current 5% fee is applied every time a customer buys a new or used car or truck.
The Iowa Automobile Dealer Association’s 13-member board has voted unanimously to lobby.