(a) A municipality having a state highway in its territory may designate to the department the route in the municipality to be used by a vehicle described by § 623.142 operating over the state highway. When the route is designated, the department shall show the route on each map routing the vehicles.
(b) If a municipality does not designate a route, the department shall determine the route to be used by a vehicle on a state highway in the municipality.

(c) A municipality may not require a fee, permit, or license for movement of vehicles on the route of a state highway designated by the municipality or department.