Kingsport, TN Business Licensing & Operations: Towing Companies (2026)

Kingsport, Tennessee, regulates towing firms that handle city tows through Chapter 98, Article IX, Division 3 (Secs. 98-596 to 98-600). Section 98-596(a) authorizes the city to contract one or more competent towing service firms for the removal and storage of motor vehicles taken into city custody for any reason, awarded through the city's competitive bidding procedure to the lowest responsible compliant bidder. Under Sec. 98-596(b), a firm that takes a vehicle into custody at the city's request is compensated for the just and reasonable towing and storage charges in accordance with the chapter.

The award runs through the Board of Mayor and Aldermen (Sec. 98-597). The purchasing agent prepares specifications, and the Board awards the contract to the lowest and best bidder whose proposal it deems most advantageous to the public and the city. It weighs integrity, skill and business judgment; general experience in towing and storage; conduct and performance under previous city towing impound; existing availability of equipment facilities and personnel; and financial ability and willingness to expand. The purchasing agent and the chief of police administer and enforce the contract.

Three contract conditions follow. The contractor must demonstrate proof of financial responsibility by insurance, surety bond or cash deposit in amounts the Board sets by formal resolution (Sec. 98-598). The contractor must post conspicuous notice of owners' rights under Secs. 98-564 and 98-565 at any location where vehicles are impounded (Sec. 98-599). The contractor must file a sworn claim with the police department on or before the tenth day of each month, which the city recorder/treasurer audits at least once annually (Sec. 98-600).

Owner protections bind the tow. No fee is assessed for standby time after the towing equipment arrives and before the impound service begins, and a stolen vehicle redeemed on or before the fifth day after impoundment owes no impoundment, towing or storage charge (Sec. 98-565). A vehicle can be impounded by a police officer or by a towing contractor acting at the request of the police department (Sec. 98-534).