I am assuming that is the way this particular CO is interpreting it Wayne.
I agree that the wording is open to some interpretation, and if you read the quote from the CO he is basically saying as others have said "buy the tag and don't worry about it".
I am assuming that the wording has changed due to some difficulties in the past. Thats why a lot of legislation gets built, because people find "loopholes" to get around it.