HB 624 - SB 876
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 6, 2025
Fiscal Analyst: Elizabeth Bransford | Email: elizabeth.bransford@capitol.tn.gov | Phone: 615-741-2564
HB 624 - SB 876
SUMMARY OF BILL: Increases the fees for services of handling mail orders of license
plates and decals each county clerk is authorized to impose. Authorizes county clerks to increase
such fees in an amount not to exceed any applicable United States Postal Service (USPS) price
increase in a given year.
FISCAL IMPACT:
LOCAL GOVERNMENT
REVENUE Permissive
FY25-26 $1,913,400
FY26-27 & Subsequent Years >$2,012,100
Assumptions:
• Pursuant to Tenn. Code Ann. § 55-4-105(c), county clerks are required to provide a mail
order service for the renewal of motor vehicle registrations whereby registrants can apply
for and receive the renewal certificates and plates or decals through USPS.
• The proposed legislation increases the fee for the mail order of license plates from $5.00 to
$7.00 and for the mail order of decals from $2.00 to $3.00.
• The proposed legislation also allows county clerks to increase the fees for such services by
an amount not to exceed an applicable USPS price increase in a given year.
• It is estimated clerks will raise their fees by the base amount in FY25-26 and will increase
their fees each subsequent year in an amount not exceeding the applicable USPS price
increase in such year.
• The total fee increase for the mail order service for license plate renewal is estimated to be
$2.00 ($7.00 - $5.00) and $1.00 ($3.00 - $2.00) for decal renewal in FY25-26.
• In 2024, USPS increased the price of a First-Class Mail Forever stamp by $0.05. For the
purposes of this analysis, it is assumed that county clerks will raise the fee for service of
handling mail orders of decals by an amount of $0.05 beginning in FY26-27.
• In 2024, USPS increased the price of metered mail by $0.05 per ounce. For the purposes of
this analysis, it is assumed the average license plate weighs four ounces; therefore, it is
assumed that county clerks will raise the fee for service of handling mail orders of license
plates by an amount of $0.20 ($0.05 x 4 ounces) beginning in FY26-27.
• Based on information provided by the Department of Revenue (DOR), 1,965,978 plate
registrations and 3,311,532 decal registrations were renewed in FY23-24. For the purposes
of this analysis, it is assumed these number will remain constant into perpetuity.
HB 624 - SB 876 2
• It is estimated that approximately 1.5 percent, or 29,490 (1,965,978 x 1.5%), of plates were
either renewed by mail or were renewed online and delivered by mail in FY23-24.
• It is further estimated that approximately 56 percent, or 1,854,458 (3,311,532 x 56%), of
decals were renewed by mail in FY23-24.
• The total recurring permissive increase in local government revenue resulting from the base
fee increases is estimated to be $1,913,438 [(29,490 plates x $2.00 fee increase) + (1,854,458
decals x $1.00 fee increase)], beginning in FY25-26.
• The recurring permissive increase in local government revenue resulting from fee increases
to match the USPS increase is estimated to exceed $98,621 [(29,490 plates x $0.20 fee
increase) + (1,854,458 decals x $0.05 fee increase)] in FY26-27 and subsequent years.
• The total recurring permissive increase in local government revenue is estimated to exceed
$2,012,059 ($1,913,438 + $98,621) in FY26-27 and subsequent years.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director