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JON STYF

The Center Square

Tennessee Gov. Bill Lee signed a bill June 3 that will provide a one-year moratorium on all state individual automobile and motorcycle registration fees.

The fees were part of a budget appropriations bill that Lee recently signed into law.

Senate Bill 2491 will have a total impact of $121.6 million and bill sponsor Sen. Bo Watson, R-Hixson, said when it was discussed in the Legislature that 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.

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.