SB 728 - HB 810
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 13, 2025
Fiscal Analyst: Natalie Dusek | Email: natalie.dusek@capitol.tn.gov | Phone: 615-741-2564
SB 728 - HB 810
SUMMARY OF BILL: Authorizes the operation of utility terrain vehicles on any state
highway or county road for which the speed limit is 45 miles per hour or less, subject to certain
restrictions.
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE General Fund Highway Fund
FY26-27 & Subsequent Years >$1,400 >$69,600
Assumptions:
• Per the proposed legislation, “utility terrain vehicle” includes:
o A low speed vehicle;
o Medium speed vehicle;
o Class I off-highway vehicle;
o Class II off-highway vehicle; and
o An all-terrain vehicle.
• The proposed legislation is not expected to significantly decrease Class C misdemeanor
convictions for the unlawful operation of such vehicles; therefore, there will not be a
significant decrease in local government incarceration expenditures or fine revenue.
• It is not estimated that the provisions of this legislation will directly lead to a significant
increase in the sales of such vehicles. Any impacts to state or local sales tax revenue is
estimated to be not significant.
• However, it is reasonably assumed that the expanded privileges afforded to owners of utility
terrain vehicles will lead to an increase in registrations of currently owned vehicles. The
precise number of additional registrations is not known.
• Based on information provided by the Department of Revenue (DOR), there are currently
31,558 active registrations for low and medium speed and Class I and II off-highway
vehicles. All-terrain vehicles are not currently authorized for registration. It is assumed that
the proposed legislation will increase the total number of registrations for existing classes by
15 percent, or by 4,734 (31,558 x 15%) registrations. The number is estimated to exceed
4,734 registrations due to the proposed inclusion of all-terrain vehicles.
• Pursuant to Tenn. Code Ann. § 55-4-111(a)(1), the registration fee for each utility terrain
vehicle is as follows:
o A low speed and medium speed vehicle: $14.50;
o Class I off-highway vehicle:m$15; and
SB 728 - HB 810 2
o Class II off-highway vehicles is $16.
• Therefore, the average registration fee for a utility terrain vehicle is $15.00 [($14.50 low
speed + $14.50 medium speed + $15 Class I + $16 Class II) / 4].
• The increase in revenue from registration fees is estimated to exceed $71,010 (4,734
registrations x $15.00).
• Each new registrant will be required to renew on an annual basis.
• Therefore, the increase in state revenue from registration and renewal fees is estimated to
exceed $71,010 in FY25-26 and subsequent years.
• Any impacts to the DOR to adjust or create additional registration classes or other
administrative actions is estimated to be not significant.
• Pursuant to Tenn. Code Ann. § 55-6-107(a)(1), proceeds from revenue generated through
the registration and licensing of motor vehicles are to be apportioned as follows: 98 percent
to the Highway Fund and 2 percent to the General Fund.
• Therefore, the estimated increases in state revenue will occur as follows:
o Exceeds $69,590 ($71,010 x 98%)/FY25-26 and subsequent years/Highway Fund.
o Exceeds $1,420 ($71,010 x 2%)/FY25-26 and subsequent years/General Fund.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director