Questions About Tag Renewal - And Response (2)

I received my tag renewal in the mail today. The renewal fee is $21.50. No problem.

There is also a $2.50 "issuance" fee. Wonder what that is? I thought the $21.50 was to reissue the tag.

There is also $2.00 for postage. The envelope says the postage was $ .48. Wonder what the other $1.52 was for? 

Jim Roberts 

* * *  

Sounds like a Verizon cell phone bill.  Fee, fee, fee, fee. 

Michael Mansfield 

* * * 

I did a little digging to see what's up.  

The cost to renew a standard vehicle tag in Tennessee is $24.  The state breaks the cost down into a $21.50 “renewal fee” and $2.50 “issuance fee.”  The distinction is one of accounting.  The state keeps the $21.50 renewal fee, and the county keeps the $2.50 issuance fee.  This is what funds the local County Clerk office instead of Hamilton County property taxes. 

Why doesn't the state just state it as $24 and do the accounting behind the scenes to cut down on confusion?  I don't know.  

Rob Smith