TN Legislature Passes Bill To Waive Vehicle Registration Fees For A Year

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The Center Square [By Jon Styf] –

The Tennessee Legislature passed a bill that will waive the state portion of vehicle and motorcycle registration fees for a year, starting on July 1.

Senate Bill 2491 will have a total impact of $121.6 million and bill sponsor Sen. Bo Watson, R-Hixson, said it was intentionally done to give a direct tax break to those who live and drive vehicles in Tennessee. A $100 registration fee for electric vehicles, however, will not be waived.

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“This makes for the largest financial relief part of this year’s appropriation act,” Watson said, referring to appropriations passed by the Legislature last week.


Motorcycle license fees are $16.75, and vehicle registrations are $23.75, according to the bill’s fiscal note.

The bill received a budget appropriation to cover the two funds that receive revenue from the registration fees. That includes $110.6 million to the state’s Highway Fund and $5.2 million to the Police Pay Supplement Fund, which receives the first dollar of each registration.

The appropriations approved last week also included $82 million for an August grocery tax holiday proposed by Gov. Bill Lee.

Tennessee has collected $2.5 billion more in taxes and fees than budgeted through the first eight months of the fiscal year.

About the Author: Jon Styf, The Center Square Staff Reporter – Jon Styf is an award-winning editor and reporter who has worked in Illinois, Texas, Wisconsin, Florida and Michigan in local newsrooms over the past 20 years, working for Shaw Media, Hearst and several other companies. Follow Jon on Twitter @JonStyf.

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