A Tennessee contractor's license expires on June 30th. If renewed by August 15th, what penalty applies in addition to the renewal fee?
Correct Answer
A) 100% of renewal fee
Tennessee law imposes a penalty equal to 100% of the renewal fee for licenses renewed within 60 days after expiration.
Why This Is the Correct Answer
Tennessee contractor licensing law imposes a penalty of 100% of the renewal fee when a license is renewed within 60 days after expiration. June 30 to August 15 is 46 days — within the 60-day window — so the 100% penalty applies.
Why the Other Options Are Wrong
Option B: 25% of renewal fee
A 25% penalty is not prescribed by Tennessee law for late renewal within 60 days. This may be confused with late-penalty structures in other states or other fee contexts.
Option C: Fixed $100 penalty
Tennessee does not use a fixed-dollar penalty of $100 for late renewal. The penalty is percentage-based, tied to the renewal fee itself, making it proportional rather than flat.
Option D: 50% of renewal fee
50% is a plausible-sounding percentage, but Tennessee law specifies 100% (not 50%) for renewals within 60 days of expiration.
Memory Technique
Think 'double trouble': renew late in Tennessee and you pay DOUBLE — the renewal fee plus 100% of that fee as a penalty. Within 60 days = 100% penalty.
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