Treasurer asks board to weigh adding out-of-county convenience fee; board requests three-month data collection

Winneshiek County Treasurer Tim Smart presented a proposal to charge a $10 county convenience fee for out-of-county driver’s-license transactions, saying the fee would offset processing time the county pays for when nonresident customers use local staff time.

Smart said the fee option is authorized to counties and estimated about 300 out-of-county issuance transactions annually in Winneshiek County. “It’s something that the counties have the option to charge for, driver's license transaction here within the state of Iowa. It's $10,” Smart told supervisors.

Smart and several supervisors discussed potential effects on revenue and customer behavior. Some supervisors said charging the fee could drive customers to neighboring counties for service and cost the county additional title-transfer and related revenue. One supervisor noted Fayette County charges the fee but that nearby counties generally do not.

After discussion, the board did not enact a fee. Instead, supervisors asked the treasurer to collect data for a trial period: identify out-of-county license applicants and whether they own property in Winneshiek County, and report back after roughly three months so the board can review the actual mix and revenue implications before making a policy decision. Tim Smart agreed to track the requested information.

Why it matters

The county currently absorbs staff time for driver's-license transactions; a convenience fee would shift some processing cost to out-of-county customers. The decision could affect local business for county offices and potentially reduce or redirect incidental revenue from customers who choose to do other transactions while in the county.

What’s next

The treasurer will return with data on out-of-county license issuances and property-ownership status after the trial period so the board can consider whether to add the convenience fee.