Legislators consider waiving state auto registration fees for 1 year

NASHVILLE, Tenn. (WSMV) - State legislators are considering a bill that would waive the state portion of the motor vehicle registration for non-commercial vehicles for one year beginning July 1.

An amendment to HB 2640 introduced in the House Transportation Committee would waive the fees for motorcycles, autocycles and passenger vehicles for one year.

“This is simply a methodology that we’re looking at to get some money back into the hands of Tennessee taxpayers,” state Rep. Patsy Hazelwood, R-Signal Mountain. “With our tax structure we don’t have a really good way to do a tax refund so this is just one way we could share the large dollars and strong revenue position the state is in and will allow us to do something for all of our Tennessee taxpayers, at least the ones that own vehicles.”

The reduction would only apply to the state registration fee. Any fees for a specialty license plate and local fees, such as a wheel tax, would still apply.

“The specialty license plates, if you want to purchase those, you will still pay the additional fee for that,” Hazelwood said. “Those dollars are directed to various organizations. We don’t want to impact them in any way. This is just for the base price of a regular tag, the state portion.”

The registration fees are deposited into the state highway fund.

“When you purchase your tag, those dollars do go into the highway fund,” Hazelwood said. “Our goal would be to make TDOT whole from the general fund for any dollars that would be part of the process.”

Currently the state receives $23.75 per motor vehicle or motor home registered and $16.75 for each motorcycle and autocycle registered. The estimated decrease in state revenue would be over $120 million.

The bill now goes to the House Finance, Ways, and Means Committee for consideration. The companion bill in the Senate is also scheduled to be heard by the Senate Finance, Ways, and Means Committee.