New State Law Affects Vehicle Title Transactions

In May 2024, the Iowa Legislature passed House File 674, Governor Reynolds signed it into law, and it became effective January 1, 2025. Of significant note, the bill (1) expands many of the motor vehicle services done at county Treasurer offices; (2) introduces new fees for certain transactions; and (3) modifies the amount of fees retained by county treasurers.

What this means for you:

1. You may now transfer a title, replace a title, and note a lien in any county in Iowa - these transactions are no longer limited to your county of residence. If you go outside your county of residence for a title transfer, your license plate will show the name of the county that issued the title. The annual renewal of your vehicle registration must still be done in your county of residence.

2.The previous and new fee schedule:

3. Counties provide motor vehicle services on behalf of the State of Iowa. To help cover the cost of these services, the state allows counties to keep a portion of each transaction, which goes into each county's general fund. However, the amount counties can retain hasn't increased in 20-35 years, even as wages and operating costs have risen. This funding gap has put added pressure on counties to rely more on property taxes to cover expenses. Adjusting the motor vehicle fees will help cover the cost at the time of vehicle purchase rather than being distributed more broadly through property taxes.

Visit the Linn County Treasurer's website.