Additional registration fee for electric vehicles

Tenn. Code Ann. § 55-4-116, under General Provisions.

Tenn. Code Ann. § 55-4-116

(a) Beginning January 1, 2024, in addition to all other motor vehicle registration fees prescribed by law, there must be paid to the department at the time the vehicle registration is renewed an additional registration fee according to the following schedule, or in such other amount as adjusted pursuant to subsections (b) and (e):(1) For all-electric vehicles:(A) On or after January 1, 2024, and prior to January 1, 2027, two hundred dollars ($200); and(B) On or after January 1, 2027, and prior to January 1, 2028, two hundred seventy-four dollars ($274);(C) On or after January 1, 2028, and each subsequent year, two hundred seventy-four dollars ($274), adjusted by an amount each year to reflect the effect of annual inflation or deflation as calculated pursuant to subsection (b).(2) For hybrid electric vehicles and plug-in hybrid electric vehicles:(A) On or after January 1, 2024, and prior to January 1, 2028, one hundred dollars ($100); and(B) On or after January 1, 2028, and each subsequent year, one hundred dollars ($100), adjusted by an amount each year to reflect the effect of annual inflation or deflation as calculated pursuant to subsection (b).

(1) For all-electric vehicles:(A) On or after January 1, 2024, and prior to January 1, 2027, two hundred dollars ($200); and(B) On or after January 1, 2027, and prior to January 1, 2028, two hundred seventy-four dollars ($274);(C) On or after January 1, 2028, and each subsequent year, two hundred seventy-four dollars ($274), adjusted by an amount each year to reflect the effect of annual inflation or deflation as calculated pursuant to subsection (b).

(A) On or after January 1, 2024, and prior to January 1, 2027, two hundred dollars ($200); and

(B) On or after January 1, 2027, and prior to January 1, 2028, two hundred seventy-four dollars ($274);

(C) On or after January 1, 2028, and each subsequent year, two hundred seventy-four dollars ($274), adjusted by an amount each year to reflect the effect of annual inflation or deflation as calculated pursuant to subsection (b).

(2) For hybrid electric vehicles and plug-in hybrid electric vehicles:(A) On or after January 1, 2024, and prior to January 1, 2028, one hundred dollars ($100); and(B) On or after January 1, 2028, and each subsequent year, one hundred dollars ($100), adjusted by an amount each year to reflect the effect of annual inflation or deflation as calculated pursuant to subsection (b).

(A) On or after January 1, 2024, and prior to January 1, 2028, one hundred dollars ($100); and

(B) On or after January 1, 2028, and each subsequent year, one hundred dollars ($100), adjusted by an amount each year to reflect the effect of annual inflation or deflation as calculated pursuant to subsection (b).

(b) (1) On January 1, 2028, and on January 1 of each subsequent year, for the registration fees assessed pursuant to subdivisions (a)(1)(C) and (a)(2)(B), the department shall adjust the amount of the fee to reflect the effect of annual inflation or deflation for the cost of living that consumers in this state experienced on average during the immediately preceding fiscal year, as follows:(A) If, based upon the chained consumer price index for all urban consumers rate published by the United States department of labor, bureau of labor statistics or another similar index established by the federal government for June of the previous year, the department determines that this federal index reflects the effect of inflation and deflation for the cost of living that consumers in this state experienced on average during the preceding fiscal year, and if the rate is less than three percent (3%), then the department shall adjust the amount of the fee by that rate; and(B) If, based upon the chained consumer price index for all urban consumers rate published by the United States department of labor, bureau of labor statistics or another similar index established by the federal government for June of the previous year, the department determines that this federal index reflects the effect of inflation and deflation for the cost of living that consumers in this state experienced on average during the preceding fiscal year, and the rate is equal to or more than three percent (3%), then the department shall adjust the amount of the fee by three percent (3%).(2) The adjustment made pursuant to subdivision (b)(1) must be rounded up to the nearest whole dollar figure. The department shall publish each adjusted registration fee amount on its website.

(1) On January 1, 2028, and on January 1 of each subsequent year, for the registration fees assessed pursuant to subdivisions (a)(1)(C) and (a)(2)(B), the department shall adjust the amount of the fee to reflect the effect of annual inflation or deflation for the cost of living that consumers in this state experienced on average during the immediately preceding fiscal year, as follows:(A) If, based upon the chained consumer price index for all urban consumers rate published by the United States department of labor, bureau of labor statistics or another similar index established by the federal government for June of the previous year, the department determines that this federal index reflects the effect of inflation and deflation for the cost of living that consumers in this state experienced on average during the preceding fiscal year, and if the rate is less than three percent (3%), then the department shall adjust the amount of the fee by that rate; and(B) If, based upon the chained consumer price index for all urban consumers rate published by the United States department of labor, bureau of labor statistics or another similar index established by the federal government for June of the previous year, the department determines that this federal index reflects the effect of inflation and deflation for the cost of living that consumers in this state experienced on average during the preceding fiscal year, and the rate is equal to or more than three percent (3%), then the department shall adjust the amount of the fee by three percent (3%).

(A) If, based upon the chained consumer price index for all urban consumers rate published by the United States department of labor, bureau of labor statistics or another similar index established by the federal government for June of the previous year, the department determines that this federal index reflects the effect of inflation and deflation for the cost of living that consumers in this state experienced on average during the preceding fiscal year, and if the rate is less than three percent (3%), then the department shall adjust the amount of the fee by that rate; and

(B) If, based upon the chained consumer price index for all urban consumers rate published by the United States department of labor, bureau of labor statistics or another similar index established by the federal government for June of the previous year, the department determines that this federal index reflects the effect of inflation and deflation for the cost of living that consumers in this state experienced on average during the preceding fiscal year, and the rate is equal to or more than three percent (3%), then the department shall adjust the amount of the fee by three percent (3%).

(2) The adjustment made pursuant to subdivision (b)(1) must be rounded up to the nearest whole dollar figure. The department shall publish each adjusted registration fee amount on its website.

(c) (1) Notwithstanding this section, a member of a uniformed service in active military service of the United States, as defined in § 58-1-102, who is stationed outside of this state and not at a military reservation located partially within the boundary of this state and that of another state under orders of the member's branch of service and who is seeking to renew a registration for an all-electric vehicle is exempt from paying any additional registration fee required under this section.(2) In order to qualify for the exemption provided in this subsection (c), the service member shall provide to the county clerk a copy of the official orders related to the stationing of the service member. The copy of the orders must be submitted at the time the vehicle registration is renewed.(3) The exemption provided in this subsection (c) applies only when the vehicle is titled and registered in the name of the service member, either alone or jointly with a spouse or lineal relative.

(1) Notwithstanding this section, a member of a uniformed service in active military service of the United States, as defined in § 58-1-102, who is stationed outside of this state and not at a military reservation located partially within the boundary of this state and that of another state under orders of the member's branch of service and who is seeking to renew a registration for an all-electric vehicle is exempt from paying any additional registration fee required under this section.

(2) In order to qualify for the exemption provided in this subsection (c), the service member shall provide to the county clerk a copy of the official orders related to the stationing of the service member. The copy of the orders must be submitted at the time the vehicle registration is renewed.

(3) The exemption provided in this subsection (c) applies only when the vehicle is titled and registered in the name of the service member, either alone or jointly with a spouse or lineal relative.

(d) Notwithstanding § 55-6-107 or another law to the contrary, the proceeds of the additional registration fees established in this section must be apportioned as follows:(1) Sixty-three and four-tenths percent (63.4%) to the state highway fund;(2) Eleven and eight-tenths percent (11.8%) to municipalities, as defined in § 54-4-201, on the basis set out in § 54-4-203;(3) Twenty-two percent (22%) to counties on the basis set out in § 54-4-103; and(4) Two and eight-tenths percent (2.8%) to the general fund.

(1) Sixty-three and four-tenths percent (63.4%) to the state highway fund;

(2) Eleven and eight-tenths percent (11.8%) to municipalities, as defined in § 54-4-201, on the basis set out in § 54-4-203;

(3) Twenty-two percent (22%) to counties on the basis set out in § 54-4-103; and

(4) Two and eight-tenths percent (2.8%) to the general fund.

(e) (1) Notwithstanding another law to the contrary, beginning on January 1, 2027, if the federal government implements any taxes or fees on all-electric vehicles under title 26 of the United States Code and allocates those taxes or fees pursuant to chapter 98 of title 26 to the federal highway trust fund (26 U.S.C. § 9503), then the additional registration fee for all-electric vehicles assessed in subdivision (a)(1) also must be adjusted pursuant to this subsection (e) so as to account for the tax or fee assessed by the federal government.(2) An adjustment in the additional registration fee pursuant to this subsection (e) becomes effective beginning January 1 of the calendar year following the implementation of the federal tax or fee on all-electric vehicles.(3) The department shall adjust the additional registration fee on all-electric vehicles by subtracting the sum of federal tax or fee from the sum of the additional registration fee at the time of the adjustment.(4) Notwithstanding the sum of the taxes or fees imposed by the federal government, the department's adjustment of the additional registration fee must not result in an additional registration fee for all-electric vehicles of less than two hundred dollars ($200), adjusted for inflation pursuant to subsection (b), on or after January 1, 2028.(5) If the federal government elects to decrease any or all taxes or fees on all-electric vehicles imposed by title 26 of the United States Code and allocated by chapter 98 of title 26 to the federal highway trust fund after it has implemented the taxes or fees, then the additional registration fee must be increased by an amount equal to the amount of the decrease by the federal government.

(1) Notwithstanding another law to the contrary, beginning on January 1, 2027, if the federal government implements any taxes or fees on all-electric vehicles under title 26 of the United States Code and allocates those taxes or fees pursuant to chapter 98 of title 26 to the federal highway trust fund (26 U.S.C. § 9503), then the additional registration fee for all-electric vehicles assessed in subdivision (a)(1) also must be adjusted pursuant to this subsection (e) so as to account for the tax or fee assessed by the federal government.

(2) An adjustment in the additional registration fee pursuant to this subsection (e) becomes effective beginning January 1 of the calendar year following the implementation of the federal tax or fee on all-electric vehicles.

(3) The department shall adjust the additional registration fee on all-electric vehicles by subtracting the sum of federal tax or fee from the sum of the additional registration fee at the time of the adjustment.

(4) Notwithstanding the sum of the taxes or fees imposed by the federal government, the department's adjustment of the additional registration fee must not result in an additional registration fee for all-electric vehicles of less than two hundred dollars ($200), adjusted for inflation pursuant to subsection (b), on or after January 1, 2028.

(5) If the federal government elects to decrease any or all taxes or fees on all-electric vehicles imposed by title 26 of the United States Code and allocated by chapter 98 of title 26 to the federal highway trust fund after it has implemented the taxes or fees, then the additional registration fee must be increased by an amount equal to the amount of the decrease by the federal government.

(f) As used in this section:(1) “All-electric vehicle”:(A) Means a passenger or commercial motor vehicle with an electric motor as its sole means of propulsion; and(B) Does not include a low speed vehicle or a medium speed vehicle;(2) “Hybrid electric vehicle”:(A) Means a vehicle propelled by a combination of an electric motor and an internal combustion engine or other power source and components thereof; and(B) Does not include a low speed vehicle or a medium speed vehicle; and(3) “Plug-in hybrid electric vehicle”:(A) Means a vehicle that can use batteries to power an electric motor and use another fuel, such as gasoline or diesel, to power an internal combustion engine or other propulsion source, and that may use electricity from the grid to run the vehicle some or all of the time; and(B) Does not include a low speed vehicle or a medium speed vehicle.

(1) “All-electric vehicle”:(A) Means a passenger or commercial motor vehicle with an electric motor as its sole means of propulsion; and(B) Does not include a low speed vehicle or a medium speed vehicle;

(A) Means a passenger or commercial motor vehicle with an electric motor as its sole means of propulsion; and

(B) Does not include a low speed vehicle or a medium speed vehicle;

(2) “Hybrid electric vehicle”:(A) Means a vehicle propelled by a combination of an electric motor and an internal combustion engine or other power source and components thereof; and(B) Does not include a low speed vehicle or a medium speed vehicle; and

(A) Means a vehicle propelled by a combination of an electric motor and an internal combustion engine or other power source and components thereof; and

(B) Does not include a low speed vehicle or a medium speed vehicle; and

(3) “Plug-in hybrid electric vehicle”:(A) Means a vehicle that can use batteries to power an electric motor and use another fuel, such as gasoline or diesel, to power an internal combustion engine or other propulsion source, and that may use electricity from the grid to run the vehicle some or all of the time; and(B) Does not include a low speed vehicle or a medium speed vehicle.

(A) Means a vehicle that can use batteries to power an electric motor and use another fuel, such as gasoline or diesel, to power an internal combustion engine or other propulsion source, and that may use electricity from the grid to run the vehicle some or all of the time; and

(B) Does not include a low speed vehicle or a medium speed vehicle.