Car and truck dealers are planning to fight a possible fee increase suggested by the Iowa Department of Transportation. 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 Department of Transportation 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 association represents about 400 Iowa dealers.(The Associated Press contributed to this story.)