State legislatures use a variety of mechanisms to supplement general funds for state arts agencies. For information on these mechanisms, see NASAA’s Dedicated Revenue Strategies Policy Brief. One revenue source used by a number of states is generated by the sale of specialty arts license plates—decorative vehicle license plates with arts messages. For example, California’s iconic Coastline specialty plate was designed by California artist Wayne Thiebaud in 1993. These plates generate revenue for state arts agencies and their constituents through a fee in addition to the regular state licensing fee. Currently, 16 states (Alabama, Alaska, California, Florida, Hawai’i, Indiana, Kansas, Nebraska, Nevada, New Hampshire, New York, Oregon, South Carolina, Tennessee, Texas and Virginia) have arts license plates.

Typically, each specialty plate contributes between $5 and $30 to the arts agency via a fee that is levied in addition to the normal license fee. In fiscal year 2022, license plate fees added more than $10 million to state arts agency funds. This supplemental income generally is applied to state arts programming, though Indiana uses the income to build its state cultural trust and Florida uses the funds to support arts organizations in each of its counties. In addition to providing revenue, specialty plates can serve as an advocacy tool by raising the visibility of the agency or the arts in general. For instance, the Alaska State Council on the Arts used the opportunity to hold a statewide competition to select a plate design and engage public officials and constituents across the state.

License plate programs can be difficult to forge, and have their drawbacks. State officials are often concerned about the cost of designing a plate if the demand is low. The cost of designing a plate can cost from $6,000 to $20,000, according to the National Conference of State Legislatures (NCSL). As a result, before they will approve a new plate, many states require an interest group to get signatures for plate support or to cover the manufacturing costs.

One of the largest difficulties associated with specialty plates is their ever-increasing availability from all types of groups. According to the NCSL, 52 states have more than 5,000 unique specialty plates, and several states, including Texas, Pennsylvania and Maryland, have more than 400. The availability of plates of all types can make it difficult for arts license plates to thrive. Additionally, the administration and collection of revenues for specialty plates, regardless of type, has been problematic in a few states. Despite these challenges, a number states have made specialty plate sales a viable source of supplemental funding for the arts.

For more information and detailed data on license plates or other dedicated revenue strategies, contact NASAA Research Manager Mohja Rhoads.

State Arts License Plate Programs