(a) The tax imposed by § 67-3-203 and the fee imposed by § 67-3-204 on petroleum products shall be measured by gallons of petroleum products removed, other than through a bulk transfer, by a licensed supplier:

Terms Used In Tennessee Code 67-3-303

  • Bulk transfer: means any transfer of a petroleum product within the bulk transfer/terminal system from one location to another by pipeline or marine delivery. See Tennessee Code 67-3-103
  • Code: includes the Tennessee Code and all amendments and revisions to the code and all additions and supplements to the code. See Tennessee Code 1-3-105
  • Gasoline: means all products commonly or commercially known or sold as gasoline that are suitable for use as a motor fuel, but does not include any product that is sold as a product other than gasoline and has an ASTM octane number of less than seventy-five (75) as determined by the "motor method". See Tennessee Code 67-3-103
  • In this state: means the area inside the boundaries of Tennessee, but does not include the midstream of waterways that border the state. See Tennessee Code 67-3-103
  • net gallon: means the amount of petroleum product, corrected to a temperature of sixty degrees Fahrenheit (60°. See Tennessee Code 67-3-103
  • Petroleum products: means all benzol, gasoline, burning oil, distillate, fuel oil, gas oil, kerosene, naphtha, or any other volatile substance, excluding propane, reflecting a gravity of sixteen degrees (16°. See Tennessee Code 67-3-103
  • Qualified terminal: means a qualified terminal as defined under the Internal Revenue Code, regulation and practices, that has been assigned a terminal control number (TCN) by the internal revenue service. See Tennessee Code 67-3-103
  • Rack: means a mechanism for delivering motor fuel from a refinery, terminal, or bulk plant into a railroad tank car, a transport truck or another means of bulk transfer outside of the bulk transfer/terminal system. See Tennessee Code 67-3-103
  • Refinery: means a facility used to produce motor fuel from crude oil, unfinished oils, natural gas liquids, or other hydrocarbons, and from which motor fuel may be removed by pipeline, by marine vessel, or at a rack. See Tennessee Code 67-3-103
  • State: means the state of Tennessee. See Tennessee Code 67-3-103
  • Supplier: means a person that meets all the following conditions:
    (i) Is subject to the general taxing jurisdiction of this state. See Tennessee Code 67-3-103
  • Terminal: means a storage and distribution facility for taxable motor fuel, supplied by pipeline or marine vessel, that is registered as a qualified terminal by the internal revenue service. See Tennessee Code 67-3-103
  • Transmix: means the buffer or interface between two (2) different products in a pipeline shipment, or a mix of two (2) different products within a refinery or terminal that results in an off-grade mixture. See Tennessee Code 67-3-103
(1) From the bulk transfer/terminal system or from a qualified terminal or refinery within this state;
(2) From the bulk transfer/terminal system or from a qualified terminal or refinery outside this state for delivery to a location in this state as represented on the shipping papers; provided, that the supplier imports such taxable petroleum products for the supplier’s own account, or such supplier has made a tax precollection election under § 67-3-503;
(3) Upon sale in qualified terminal or refinery in this state to an unlicensed supplier; or
(4) In other cases in the same manner as the tax imposed by § 4081 of the Internal Revenue Code of 1986 (26 U.S.C. § 4081) or the Code of Federal Regulations.
(b) Anything to the contrary notwithstanding, the special privilege tax and the environmental assurance fee on gasoline shall be measured and levied at the time the product first comes to rest in this state.
(c) With respect to the operator of a terminal in this state, the tax imposed by § 67-3-203 and the fee imposed by § 67-3-204, shall be measured and levied annually on petroleum products other than gasoline by the amount by which net gallons lost or unaccounted for, including transmix, within the terminal exceed the sum of net gallon gains, plus one-half of one percent (0.5%) times the number of all net gallons removed from such terminal across the rack or in bulk.
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