Property tax relief law means added revenue for Jones Co.

     On July 1, many new laws in Iowa go into effect.

   At the end of the 2023 Iowa Legislative Session this spring, lawmakers passed House File 718, known as the property tax relief bill. The Governor later signed it into law.

   As part of that bill, county treasurer’s offices that provide driver’s license services, such as Jones County, could gain an alternative revenue source.

   As of July 1, counties, such as Jones, that do not operate a state DOT station, can charge a $10 convenience fee for non-county residents when it comes to issuing or renewing a driver’s license, unless that non-county resident pays property taxes in Jones County (or wherever they’re getting their license renewed).

   Jones County Treasurer Amy Picray said the majority of non-county residents who come to her office for driver’s license services are from Linn County. They’ll be advised of the $10 additional fee on top of their driver’s license fee.

   “It’s an optional fee,” Picray noted, meaning not every county has to implement the fee.

   Those counties (Linn, Dubuque, and Johnson, to name a few) that only have state DOT stations cannot enact the fee. There are an estimated 80-plus county treasurer offices that issue driver’s licenses.

   Picray and the Iowa County Treasurer’s Association have been trying to get a bill passed through the Iowa Legislature for the last eight to 10 years.

   “It increases the amount we’re reimbursed for driver’s licenses,” explained Picray.

   What used to be just $7 increases to $10.

   Picray credited former State Representative Lee Hein of Monticello for introducing this bill several years ago after having a conversation with Picray.

   “It wouldn’t go through, so the Treasurer’s Association brought it back every year,” she said. “I kept pushing for it and talking to our legislators.”

   This is a passion of Picray’s and she said she’s thrilled to see it finally enacted into a law.

   In fact, Picray got to attend Gov. Kim Reynolds’ signing of the bill into law on May 4 in Des Moines.

   “She was a county treasurer when I became a county treasurer,” Picray said of the connection.

   Before this fee increase, Jones County property taxpayers were paying to subsidize the driver’s license services offered by Picray’s office to non-county residents.

   For Fiscal Year 2022, total expenses for driver’s licenses out of Picray’s office was $216,000. She received $76,566 in compensation from the state.

   “The difference was made up through property tax collection,” she said. “Jones County property taxpayers subsidize the service.”

   Picray presented some figures from the last five fiscal years. More than 50 percent of the driver’s licenses issued in FY 2018 through 2022 were from out-of-county customers. And if you add the new $10 convenience fee, Picray’s office could bring in an additional $70,000 to almost $90,000 in revenue.

   “We’re happy to provide these services,” offered Picray, “because it brings in additional revenue to the county.”

   By having county treasurer offices provide driver’s license services, it also eases the burden on the state stations.

   Due to the increase in traffic in her office, Picray has had to add an additional employee.

   When people from other counties come to the Jones County Courthouse for business, they’re also stopping in other offices, such as the Recorder’s Office, to take care of such business as boat, ATV, and snowmobile registrations.

   They’re also spending money locally, whether it’s to get gas, grab a bite to eat, or shop before heading home.

   With license services in other counties taking longer than expected, people from neighboring counties come to Jones for the efficient and friendly service.

   As for whether she thinks this higher fee will alleviate the traffic in her office, Picray said, “I hope not.”

   She’s put a notice of the fee on her website, Facebook page, and her staff have been informing customers who are making appointments after July 1.

   “The $10 may not be enough,” Picray indicated.

   Even with the additional projected revenue, there is still a $140,000 gap in revenue for the services offered.

   Picray’s office isn’t the only county office that will benefit come July 1 from HF 718. Sheri Jones, county recorder, will be able to charge $2 versus $1.25 for all boat, off-highway, and snowmobile registration or renewal. This applies to everyone, no matter county of residency.

   “It’s a $2 writing fee,” she explained of the time it takes to provide the service. “it’s not as labor intensive as driver’s licenses.”

   Jones’ office serves as an agent of the Iowa DNR for services like this.

   Jones said it’s an awesome feeling to know Jones County offices can help non-county residents when it comes to convenience of service.

   This fee increase was first introduced by the legislature in 2020 and never went anywhere. With it combined to the property tax relief bill, it passed.

   “It’s also about providing consistency and uniformity with our fee structure,” Jones added of the $2.

   On June 29, Jones’ office processed seven transactions for ATVs, boats, and/or snowmobiles. Charging a $1.25 writing fee, her office brought in $7.50. After July 1, that writing fee would be about $20.

   With the increase, Jones projected $2,727.50 for FY 2023, and $5,386 for FY 2024.