New Title and Registration Law Will Have a Significant Impact on County Clerks’ Offices

This year the General Assembly passed Public Chapter 1003, which amends T.C.A. § 55-6-104(a)(3) to increase county clerks’ fees from $5.50 to $8.50 for receiving and forwarding applications for certificates of title to the department of revenue. The law earmarks the revenue from the additional $3.00 fee for the provision of services directly related to titling and registration. The funds must not revert to the unassigned fund balance of the county general fund at the end of the year if unspent, but rather, must remain in a restricted fund balance.  The law takes effect on July 1, 2022.

County clerks are encouraged to inform the budget committee and county legislative body about the new law; specifically, the revenue generated by the additional $3.00 fee can only be used for the provision of services directly related to titling and registration.  To this end, it is important county clerks maintain an accurate record of fees collected and expenditures made related to receiving and forwarding applications for certificates of title to the department of revenue.   A difference in current year revenue and current year expenditures resulting in excess revenues would be restricted for titling and registration.

For more information about Public Chapter 1003, please do not hesitate to reach out to your CTAS County Government Consultant.