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Bill of Sale Required for Transferring Vehicle Titles Beginning January 1, 2020

Effective January 1, 2020 the Butler County Treasurer’s Office will require customers to provide a bill of sale when transferring titles to motor vehicles between private parties. A bill of sale or purchase agreement is already required for vehicles purchased from a dealership.

The Iowa State County Treasurer’s Association (ISCTA) in conjunction with the Iowa Department of Revenue (IDR) aim to substantiate vehicle purchase prices, which have a direct impact on the fees that are remitted to the State’s Road Use Tax fund.

The ISCTA Executive Board is encouraging all 99 counties to proactively require a bill of sale to be completed by both the seller and the buyer in advance of any administrative mandate.

Many counties already require a bill of sale between private parties and are allowed to do so pursuant to section 321.13 of the Iowa Code. Butler County will join other counties and require a bill of sale effective January 1, 2020. The Bill of Sale should include the seller’s name, make and year of the vehicle, Vehicle Identification Number (VIN), buyer’s name, date of sale, purchase price, and signature of seller.

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