Amends TCA Title 5, Chapter 8, Part 1; Title 55, Chapter 4 and Title 55, Chapter 6.

Generally, Tennessee motor vehicle registrations are valid for 12 months. Beginning January 1, 2024, this bill authorizes owners and lessees of private vehicles to elect for issuance or renewal of a registration for 24 months. This bill authorizes the commissioner of revenue to establish a system of registration renewals at alternate intervals that allow for the distribution of the registration workload as uniformly as is practicable throughout the registration period. This bill requires the department of revenue to set 24-month registration fees in an amount that offsets revenue that would otherwise be generated by 12-month registration fees in effect prior to January 1, 2024. This bill does not apply to commercial vehicles. Beginning in fiscal year 2024-2025, and subsequent fiscal years, on June 15 of each fiscal year, this bill authorizes counties to earmark and allocate a sum from the county general fund to hold county clerks harmless from the loss of fee revenue resulting from the increase in the duration of the registration period from 12 months to 24 months. A county that desires to earmark and allocate registration fee revenue to the county clerk may, by action of its governing body, establish an escrow account to provide for the disbursement of such funds on a prorated basis. ON APRIL 3, 2023, THE SENATE ADOPTED AMENDMENT #2 AND PASSED SENATE BILL 576, AS AMENDED. AMENDMENT #2 makes the following changes to this bill: (1) Clarifies that, if an owner or lessee elects for the issuance of a 24-month registration, then the fees imposed must offset revenue that would otherwise be generated by 12-month registration fees; (2) Clarifies that, if an owner or lessee elects for the 24-month registration, then the motor vehicle privilege tax imposed must also offset revenue that would otherwise be generated by the motor vehicle privilege tax for a 12-month registration; and (3) Clarifies that an owner or lessee is not entitled to a refund of the fee or tax from the department of revenue or the county issuing the registration.