Chattanooga Mayor Tim Kelly reached a deal with the wrecker industry on a tow rate increase that he feels is both fair and reasonable for residents and also accounts for the industry’s rising costs.
The agreement, which the Chattanooga City Council passed on Tuesday as an amended ordinance, includes a daytime tow rate of $225 and a night/weekend rate of $250, with a provision to update rates annually according to inflation. Annual updates will be based on federal inflation data and must be approved by the City’s Beer & Wrecker Board.
“I am glad our negotiations with the towing industry and City Council resulted in a fairer deal for Chattanoogans, and I look forward to signing the amended ordinance to ensure tow fees remain fair and reasonable in the years to come,” said Kelly. “Towing fees are almost always an unexpected cost that can really matter to working-class Chattanoogans struggling with inflation themselves—and I’m committed to doing everything in my power to keep our city affordable for everyone.”
The updated tow fees are lower than the rates City Council originally passed on Dec. 6, 2022—which had raised the maximum allowable rates to $250 for towing passenger vehicles in the daytime and $275 during the evenings and weekends. Kelly vetoed the increases on Dec. 13, citing concerns that they were far in excess of the current rate of inflation.
As a result of the veto, the towing industry entered into negotiations with the administration and reached an agreement on lower rates. The amended ordinance represents a more sustainable solution to set inflation-adjusted fees annually, ensuring fair rates for both residents and towing companies. Mayor Kelly will sign the amended legislation, as he committed to the City Council in his veto notice last week.
“I want to thank the Council for their work to design the initially proposed ordinance, which was largely a step in the right direction. This deal, reached together with the City Council and towing and wrecker industry representatives, demonstrates that City government works well and works for Chattanoogans,” said Joda Thongnopnua, Chief of Staff for the City of Chattanooga. “We were able to resolve our differences quickly and agree on lower rates while creating a sustainable solution for future increases that is limited by the annual rate of inflation.”