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State temporarily waives tag fees

By Meg Dickens
Freelance Writer

Tennesseans will be getting a happy surprise courtesy of the state government starting this July. As of this July, the state government will be waiving tag fees for its citizens for the next fiscal year. This applies to Class A and Class B motor vehicles. The idea reportedly has been on legislators’ minds since March, but the official decision to waive this fee was made on Wednesday, April 20, as Tennessee lawmakers’ way of giving back to the taxpayers after receiving more revenue than expected due to over-collections.
“Because there are so many over-collections, in terms of non-recurring ways we can get dollars back to taxpayers, we felt this was a great way to do that,” explained State Representative David Hawk in another interview. “So the state’s portion of your wheel tax is going away starting the next fiscal year in July.”
This was made possible by an amendment to Senate Bill 2491 and a partnering amendment to House Bill 2640. Legislators reportedly plan to use money from the General Fund to fill any gaps made by waiving this fee. This will be in effect until the end of June 2023.
For those concerned about local funding, that will reportedly not be an issue for the area. According to Johnson County Clerk Tammie Fenner, the state will still provide the county’s portion of the funds as usual despite dropping the charge to the people. County commissioners noted no downsides to this deal when Fenner made the announcement.
“Starting July 1, all car plates and motorcycle plates, the state’s fee is going to be waived for a whole year,” explained Fenner. “We’ll still get our county portion. They’re still going to pay that. They have a lot of rainy-day money, and they need to get rid of it, so they decided to give it back to the Tennesseans.”
As the information is so new, details are still being sorted out on any specifics for how the minor details will work. Keep an eye out for more information on the subject in the future. For more information on the legislature involved, visit wapp.capitol.tn.gov.