Owners Of Hybrid, All-Electric Vehicles Hit By Sticker Shock; Hazlewood Says Higher Fees Fair For All Drivers

  • Thursday, January 4, 2024

Tennessee owners of all-electric vehicles are getting sticker shock when they are notified of much higher registration fees this year. At the same time, owners of hybrid vehicles and plug-in hybrid vehicles are facing a new registration expense.

Registration fees for all-electric vehicles will be $200 starting this year, and will go up to $274 in 2027. The fee will be adjusted for inflation afterward.

Registration fees for hybrid vehicles will be $100 starting this year, and will be adjusted for inflation starting in 2028.

County Clerk Bill Knowles said his office is receiving a number of inquiries regarding the fee increase imposed by the Legislature under the Transportation Modernization Act passed last session.

Legislators said the change was aimed at bringing some tax parity between those who drive hybrid and all-electric vehicles and those who drive gas-powered vehicles and pay gas taxes.

Rep. Patsy Hazlewood said, "Tennessee is leading the nation’s transition to electric automobiles with many major electric vehicle manufacturers and suppliers building their products here. At the same time, the number of new electric vehicles on our roads is growing exponentially.

"As a state, we must prepare for how we will make up for lost gas tax revenue that is essential to building and maintaining our roads and other infrastructure. The previous registration fee for electric vehicles was well below the average paid by drivers of gas-powered vehicles annually. This is fair to all drivers by providing an equitable way to ensure a dedicated future source of funding for our roads." 

The Tennessee Department of Revenue sent out this notice:

Transportation Modernization Act of 2023 Changes Electric and Hybrid Vehicle Registration Fees; Electric and Hybrid Vehicle Fees Increase

The Transportation Modernization Act of 2023, Public Chapter 159 (2023), increases the registration fee for electric vehicles, and creates a registration fee for hybrid vehicles and plug-in hybrid vehicles. The fees apply in addition to the standard registration fee and
only apply at the time the vehicle registration is renewed.

Fee Schedule for All-Electric Vehicles

The registration fee for all-electric vehicles is as follows:
• For registration renewals on or after January 1, 2024, and prior to January 1, 2027: $200.
• For registration renewals on or after January 1, 2027, and prior to January 1, 2028: $274.
• For registration renewals on or after January 1, 2028, and thereafter: $274, adjusted
annually for inflation.

Fee Schedule for Hybrid Electric Vehicles and
Plug-In Hybrid Electric Vehicles

The registration fee for hybrid electric vehicles and plug-in hybrid electric vehicles is as follows:
• For registration renewals on or after January 1, 2024, and prior to January 1, 2028: $100.
• For registration renewals on or after January 1, 2028, and thereafter: $100, adjusted
annually for inflation.

For More Information
Visit www.tn.gov/revenue. Click on Revenue Help to search for answers or to submit an information request to one of our agents.

References
Pub. Ch. 159 (2023)

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