Can a Tennessee county apply its wheel tax to only some categories of vehicles, set different rates for different vehicle types, or create its own exemptions?

Subject

Opinion No. 12-18, County Wheel Taxes, February 22, 2012

Plain-English summary

Tennessee counties can levy a "motor vehicle privilege tax" (a wheel tax) on motor vehicles that are also taxable by the state, under Tenn. Code Ann. § 5-8-102. Representative Keisling asked the AG three questions about how much discretion counties have when designing their wheel taxes.

1. Which vehicles are taxed? Counties can pick. The statute uses the word "any" rather than "all" when describing motor vehicles taxable by the state. The AG read that as giving counties authority to choose which categories of vehicles (motorcycles, passenger cars, trailers, mobile homes, private buses, vehicles for hire, all defined in Tenn. Code Ann. §§ 55-4-111 and -112) will bear the wheel tax. Compare this to opinion 12-13 above on courthouse-security litigation tax, where "all" controlled and counties had to apply the tax to every case.

2. Can the rate differ by vehicle type? Yes, with a rational basis. The statute does not specify the rate. Counties have always had latitude on the rate amount (the AG cited earlier opinions, e.g., 97-109, 96-098, 00-106). But equal protection under Tenn. Const. art. XI, § 8 and the Fourteenth Amendment requires a rational basis for rate differences across vehicle classes. The state's own registration fee schedule already differs by vehicle classification ($11.75 for a motorcycle, $18.75 for a passenger car, $200 for a private bus), so rational classifications by vehicle type are plainly available.

3. Can the county add exemptions? Yes, with a rational basis. The statute already exempts disabled veterans and former prisoners of war (§ 5-8-102(d)(1)) and (in an opt-in for OEM-headquarters companies) certain manufacturer fleet vehicles (§ 5-8-102(d)(4)). The AG noted these are floor exemptions, not ceiling exemptions: nothing in the statute prevents a county from adding more, and the statutory drafters knew how to limit county discretion (§ 5-8-102(d)(2) on collection mechanics) when they wanted to. The maxim that legislative silence in one place and speech in another is significant (Harmon, Tenn. 2011) supports the AG's reading. Any additional county exemption still needs a rational basis under equal protection.

The opinion's bottom line: § 5-8-102 sets a floor of statutory exemptions and lets counties build the rest of their wheel tax design within constitutional limits.

Currency note

This opinion was issued in 2012. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Tenn. Code Ann. § 5-8-102 has been amended since 2012, including changes to the wheel-tax enactment process (the prior optional referendum was repealed in 2017 and replaced with a two-thirds vote of the county commission), and registration fees in Tenn. Code Ann. § 55-4-111 have been substantially restructured. Before relying on any specific procedural or substantive rule here, pull current statutes.

Background and statutory framework

Wheel tax authority. Tenn. Code Ann. § 5-8-102(b) authorizes each county to levy a motor vehicle privilege tax as a condition precedent to operating a motor vehicle within the county. The tax may be levied "on any motor vehicle taxable by the state."

Vehicles taxable by the state. Tenn. Code Ann. §§ 55-4-101 to -135. The state requires registration of motor vehicles operated on Tennessee streets and highways, and the registration fees are themselves a privilege tax. Tenn. Code Ann. § 55-4-101(a)(2). Registration fees vary by vehicle type (Tenn. Code Ann. §§ 55-4-111, -112).

Statutory exemptions.

• Disabled veterans and former POWs are exempt. Tenn. Code Ann. § 5-8-102(d)(1).
• OEM-headquarters companies can apply for an exemption on their OEM-headquarters company vehicles. Tenn. Code Ann. § 5-8-102(d)(4); see also Tenn. Code Ann. § 55-1-126(1)-(2) (definitions).

Collection mechanics fixed by statute. Tenn. Code Ann. § 5-8-102(d)(2) requires that the duration, collection method, proration, and grace period mirror Tenn. Code Ann. § 55-4-104 for state registration. Counties cannot deviate on those mechanics. This is what made the AG's reading clean: where the Legislature wanted to fence county discretion, it said so explicitly. Silence on exemptions and rate amounts therefore reads as permission.

Equal protection floor. Any classification (rate or exemption) must have a rational basis under Tenn. Const. art. XI, § 8 and the Fourteenth Amendment.

Common questions

Q: My county wheel tax is the same for my motorcycle and my pickup. Can the county charge me less for the motorcycle?
A: Per this opinion, yes. The county can rate-tier by vehicle class so long as the tiers have a rational basis. The state registration fee already does this.

Q: Can my county exempt classic cars or low-mileage vehicles?
A: Possibly. The opinion says counties can add their own exemptions on top of the statutory disabled-veteran and OEM-headquarters exemptions, but each new exemption must rest on a rational basis tied to a legitimate state interest.

Q: Can my county tax only commercial vehicles and skip passenger cars?
A: Per the opinion's "any" reading, yes, in theory. Counties can pick which categories of registered vehicles bear the wheel tax. Whether a specific carve-out would survive equal-protection review depends on the county's stated rationale.

Q: Is the wheel tax a tax or a fee?
A: It is a privilege tax under Tennessee law. § 55-4-101(a)(2) classifies state registration as a privilege tax, and § 5-8-102(b) authorizes the county wheel tax as a privilege tax keyed to the same vehicles.

Q: Are disabled veterans automatically exempt without applying?
A: The statute makes disabled veterans and former POWs exempt. Local administration may vary; check with your county clerk for documentation requirements.

Citations and references

Statutes and constitutional provisions:

• Tenn. Code Ann. § 5-8-102(b), (d)(1), (d)(2), (d)(4)
• Tenn. Code Ann. §§ 55-4-101 to -135
• Tenn. Code Ann. § 55-1-126
• Tenn. Code Ann. § 67-6-224
• Tenn. Const. art. XI, § 8
• U.S. Const. amend. XIV

Cases:

• Leggett v. Duke Energy Corp., 308 S.W.3d 843 (Tenn. 2010)
• Bryant v. Baptist Health System Home Care of East Tennessee, 213 S.W.3d 743 (Tenn. 2006)
• Harmon v. University of Tennessee, 353 S.W.3d 734 (Tenn. 2011)
• Carver v. Citizen Utils. Co., 954 S.W.2d 34 (Tenn. 1997)

Source

• Landing page: https://www.tn.gov/attorneygeneral/opinions.html
• Original PDF: https://www.tn.gov/content/dam/tn/attorneygeneral/documents/ops/2012/op12-018.pdf

Original opinion text

STATE OF TENNESSEE
OFFICE OF THE
ATTORNEY GENERAL
PO BOX 20207
NASHVILLE, TENNESSEE 37202
February 22, 2012
Opinion No. 12-18
County Wheel Taxes
QUESTIONS
Lbl1. May a county levying a wheel tax under Tenn. Code Ann. § 5-8-102(b) choose
the vehicles upon which to levy the tax from among those vehicles taxable by the State, or must
the county levy the wheel tax on all vehicles taxable by the State?
Lbl2. May a county levying a wheel tax under Tenn. Code Ann. § 5-8-102(b) levy the
tax at different rates for different vehicles, or must the rate be uniform for all vehicles to which
the tax applies?
Lbl3. May a county levying a wheel tax under Tenn. Code Ann. § 5-8-102(b) create
exemptions to the tax in addition to the exemption set out in Tenn. Code Ann. § 5-8-102(d)(1)
for disabled veterans?
OPINIONS
Lbl1. Pursuant to Tenn. Code Ann. § 5-8-102(b), the General Assembly has authorized
counties to levy the wheel tax "on any motor vehicle taxable by the state," thereby permitting
counties to choose which motor vehicles set forth in Tenn. Code Ann. §§ 55-4-111 and -112 will
bear the tax.
Lbl2. Because the General Assembly has accorded to counties discretion as to which
motor vehicles to tax and has not set tax rates, counties levying a wheel tax under Tenn. Code
Ann. § 5-8-102(b) may levy the tax at different rates for different vehicles, as long as there is a
rational basis to distinguish among them.
Lbl3. Because the General Assembly has accorded to counties discretion as to which
motor vehicles to tax, counties levying a wheel tax under Tenn. Code Ann. § 5-8-102(b) may
create additional exemptions from the tax, as long as there is a rational basis for those
exemptions.
ANALYSIS

1. Pursuant to Tenn. Code Ann § 5-8-102, the General Assembly has authorized
   each county to levy "a motor vehicle privilege tax as a condition precedent to the operation of a
   Page 2
   motor vehicle within the county.” Tenn. Code Ann. § 5-8-102(b). This tax is known as the
   wheel tax, and it “may be levied on any motor vehicle taxable by the state.” Id. The vehicles
   that are “taxable by the state” are set forth in Tenn. Code Ann. §§ 55-4-101 to -135. Pursuant to
   those statutes, the State requires the registration of motor vehicles operated on “the streets or
   highways of this state,” Tenn. Code Ann. § 55-4-101(a)(1), and “[t]he registration and fees . . .
   constitute a privilege tax” on such operation. Tenn. Code Ann. § 55-4-101(a)(2). The motor
   vehicles that are subject to the state’s registration fee and, thus, a county’s wheel tax include
   motorcycles, passenger motor vehicles, trailers, mobile homes, private buses, and motor vehicles
   operating for hire. Tenn. Code Ann. §§ 55-4-111 and -112. The amounts of the registration fees
   differ based upon the motor vehicle’s classification. Id. For example, the fee is $11.75 for a
   motorcycle, $18.75 for a passenger motor vehicle, and $200 for a private bus. Tenn. Code Ann.
   § 55-4-111(a)(1).
   Counties may levy the wheel tax “on any motor vehicle taxable by the state.” Tenn.
   Code Ann. § 5-8-102(b) (emphasis added). The term “any” grants counties the authority to
   designate which motor vehicles listed in Tenn. Code Ann. §§ 55-4-111 and -112 will bear the
   wheel tax. See Leggett v. Duke Energy Corp., 308 S.W.3d 843, 851 (Tenn. 2010) (courts will
   apply the plain meaning of a statute when the statutory language is clear and unambiguous);
   Bryant v. Baptist Health System Home Care of East Tennessee, 213 S.W.3d 743, 748 (Tenn.
   2006) (courts should avoid applying to a statute a forced or subtle construction that extends the
   statute’s meaning). If the General Assembly had intended to require counties to levy the wheel
   tax on all motor vehicles taxable by the State, then it would have used the word “all” instead of
   “any.”
2. Tenn. Code Ann. § 5-8-102 does not specify the amount of the wheel tax to be
   levied by counties. As discussed in previous opinions issued by this Office, the General
   Assembly has not limited the amount of the wheel tax or required that it be equal to the amount
   of the state registration fee. Op. Tenn. Atty. Gen. No. 97-109 (August 6, 1997); Op. Tenn. Atty.
   Gen. No. 96-098 (July 31, 1996). However, even though the General Assembly has not limited
   the ability of counties to levy the tax at different rates, counties doing so must comply with
   Article XI, Section 8, of the Tennessee Constitution and the Fourteenth Amendment of the
   United States Constitution, which require that there be a rational basis for any rate differences.
   See Op. Tenn. Atty. Gen. No. 00-106 (June 9, 2000). As noted above, the state registration fee
   differs based on the classification of the vehicle.
3. In authorizing the wheel tax, the General Assembly included restrictions on the
   ability of counties to levy the tax. For example, the tax must have the same term, collection
   method, proration, and grace period as the state registration fee. Specifically,
   [i]n each county that has levied or may hereafter levy a motor
   vehicle privilege tax under either this chapter or by private act, the
   duration or term for which the privilege is issued, method of
   collection, proration of the amount chargeable for a period of
   either more or less than a calendar year interval, and the grace
   period allowable shall be the same as that provided for in § 55-4-
   motor vehicle within the county." Tenn. Code Ann. § 5-8-102(b). This tax is known as the
   wheel tax, and it "may be levied on any motor vehicle taxable by the state." Id. The vehicles
   that are "taxable by the state" are set forth in Tenn. Code Ann. 55-4-101 to -135. Pursuant to
   those statutes, the State requires the registration of motor vehicles operated on "the streets or
   highways of this state," Tenn. Code Ann. § 55-4-101(a)(1), and "[t]he registration and fees
   constitute a privilege tax" on such operation. Tenn. Code Ann. § 55-4-101(a)(2). The motor
   vehicles that are subject to the state's registration fee and, thus, a county's wheel tax include
   motorcycles, passenger motor vehicles, trailers, mobile homes, private buses, and motor vehicles
   operating for hire. Tenn. Code Ann. §§ 55-4-111 and -112. The amounts of the registration fees
   differ based upon the motor vehicle's classification. Id. For example, the fee is $11.75 for a
   motorcycle, $18.75 for a passenger motor vehicle, and $200 for a private bus. Tenn. Code Ann.
   § 55-4-111(a)(1).
   Counties may levy the wheel tax "on any motor vehicle taxable by the state." Tenn.
   Code Ann. § 5-8-102(b) (emphasis added). The term "any" grants counties the authority to
   designate which motor vehicles listed in Tenn. Code Ann. §§ 55-4-111 and -112 will bear the
   wheel tax. See Leggett v. Duke Energy Corp., 308 S.W.3d 843, 851 (Tenn. 2010) (courts will
   apply the plain meaning of a statute when the statutory language is clear and unambiguous);
   Bryant v. Baptist Health System Home Care of East Tennessee, 213 S.W.3d 743, 748 (Tenn.
   2006) (courts should avoid applying to a statute a forced or subtle construction that extends the
   statute's meaning). If the General Assembly had intended to require counties to levy the wheel
   tax on all motor vehicles taxable by the State, then it would have used the word "all" instead of
   "any."
   Lbl
   Lbl
   104 for payment of state motor vehicle registration fees for all such
   Tenn. Code Ann. § 5-8-102(d)(2). The General Assembly also exempted disabled veterans,
   former prisoners-of-war, and company vehicles of certain manufacturers from the wheel tax
   Tenn. Code Ann. § 5-8-102(d)(1) and (4). Subdivisions (d)(1) and (d)(4) merely exempt the
   persons and entities listed therein, and can in no way be read as a limitation on the ability of
   counties to exempt additional persons or entities from the wheel tax. If the General Assembly
   had intended such a limitation, it could have so stated or included language similar to that of
   subdivision (d)(2) requiring the counties to have the same exemptions as those stated in
   subdivisions (d)(1) and (d)(4) and no more. See Harmon v. University of Tennessee, 353 S.W.
   1997)) (stating that "omissions are significant when statutes are express in certain categories but
   not others"). As with any rate differences, counties must have a rational basis for any
   1 "OEM headquarters company" is defined as "an original equipment manufacturer that is engaged in the business of
   manufacturing motor vehicles and qualifies to receive the credit provided in § 67-6-224, or any affiliate thereof."
   Tenn. Code Ann. § 55-1-126(1) (Supp. 2011).
   2 "OEM headquarters company vehicle" is defined as "any motor vehicle subject to registration in accordance with
   this title that is owned by an OEM headquarters company and motor vehicles provided by the OEM
   headquarters company for use by eligible employees and their eligible family members in accordance with policies
   established by the OEM headquarters company and approved by the commissioner." Tenn. Code Ann. § 55-1-
   126(2) (Supp. 2011).
   Page 3
   104 for payment of state motor vehicle registration fees for all such
   vehicles described in that section.
   Tenn. Code Ann. § 5-8-102(d)(2). The General Assembly also exempted disabled veterans,
   former prisoners-of-war, and company vehicles of certain manufacturers from the wheel tax
   through the following provisions:
   (1) Any disabled veteran . . . or any former prisoner-of-war . . . is
   exempt from the motor vehicle privilege tax imposed by this
   section or by private act . . . .

(4) Any OEM headquarters company1
may make application to the
commissioner of revenue to be exempt from the motor vehicle
privilege tax imposed by this section or by private act; provided,
however, that the exemption granted under this subdivision (d)(4)
shall apply only with respect to OEM headquarters company
vehicles.2
Tenn. Code Ann. § 5-8-102(d)(1) and (4). Subdivisions (d)(1) and (d)(4) merely exempt the
persons and entities listed therein, and can in no way be read as a limitation on the ability of
counties to exempt additional persons or entities from the wheel tax. If the General Assembly
had intended such a limitation, it could have so stated or included language similar to that of
subdivision (d)(2) requiring the counties to have the same exemptions as those stated in
subdivisions (d)(1) and (d)(4) and no more. See Harmon v. University of Tennessee, 353 S.W.
3d 734, 738-39 (Tenn. 2011) (quoting Carver v. Citizen Utils. Co., 954 S.W. 2d 34, 35 (Tenn.
1997)) (stating that “omissions are significant when statutes are express in certain categories but
not others”). As with any rate differences, counties must have a rational basis for any
exemptions.
ROBERT E. COOPER, JR.
Attorney General and Reporter
1
“OEM headquarters company” is defined as “an original equipment manufacturer that is engaged in the business of
manufacturing motor vehicles and qualifies to receive the credit provided in § 67-6-224, or any affiliate thereof.”
Tenn. Code Ann. § 55-1-126(1) (Supp. 2011).
2
"OEM headquarters company vehicle" is defined as “any motor vehicle subject to registration in accordance with
this title that is owned by an OEM headquarters company . . . and . . . motor vehicles provided by the OEM
headquarters company for use by eligible employees and their eligible family members in accordance with policies
established by the OEM headquarters company and approved by the commissioner.” Tenn. Code Ann. § 55-1-
126(2) (Supp. 2011).
Page 4
WILLIAM E. YOUNG
Solicitor General
NICHOLAS G. BARCA
Assistant Attorney General
Requested by:
The Honorable Kelly T. Keisling
State Representative
108 War Memorial Building
Nashville, Tennessee 37243
WILLIAM E. YOUNG
NICHOLAS G. BARCA
The Honorable Kelly T. Keisling
Nashville, Tennessee 37243