(a) The taxes and fees imposed by §§ 67-3-202 – 67-3-204, on the date of an increase in the tax rate, shall be applicable to previously taxed petroleum products in inventory held for sale by a wholesaler.

Terms Used In Tennessee Code 67-3-304

  • Bonded importer: means a person with a valid bonded importer's license under §. See Tennessee Code 67-3-103
  • Commissioner: means the commissioner of revenue or the commissioner's designated subordinate official. See Tennessee Code 67-3-103
  • Dead storage: means the amount of taxable motor fuel that will not be pumped out of a storage tank because the motor fuel is below the mouth of the draw pipe. See Tennessee Code 67-3-103
  • Diesel fuel: means any liquid that is commonly or commercially known or sold as a fuel that is suitable for use in a diesel-powered highway vehicle. See Tennessee Code 67-3-103
  • Dyed diesel fuel: means diesel fuel dyed under United States environmental protection agency rules for high sulfur diesel fuel, or dyed under internal revenue service rules for low sulphur fuel, or dyed pursuant to any other requirements subsequently set by the environmental protection agency or internal revenue service, including any invisible marker requirements. See Tennessee Code 67-3-103
  • 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
  • Motor fuel: means gasoline, diesel fuel and blended fuel. See Tennessee Code 67-3-103
  • Person: means a natural person, partnership, firm, association, corporation, limited liability company, court appointed representative, state, political subdivision or any other entity, group, or syndicate. 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
  • State: means the state of Tennessee. See Tennessee Code 67-3-103
  • Statute: A law passed by a legislature.
  • 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
  • Wholesaler: means a person who acquires petroleum products from a supplier, importer or from another wholesaler, for subsequent sale and distribution at wholesale by tank cars, transport trucks or vessels. See Tennessee Code 67-3-103
(b) The tax imposed by § 67-3-201, on the date of an increase in the tax rate, shall be applicable to previously taxed gasoline in inventory held by a supplier, bonded importer, importer or wholesaler, except inventory held at retail.
(c) The tax imposed by § 67-3-202 shall be applicable to all nonexempt inventory held by any person outside of the bulk transfer/terminal system in this state to the extent such inventory has not previously been subject to the tax imposed by this state under the predecessor motor fuel tax statute; provided, that no tax shall be payable with respect to dyed diesel fuel or fuel held by an exempt user, including governmental agencies described under § 67-3-401.
(d) Persons in possession of taxable petroleum products subject to this section shall take an inventory at the start of business on the date that the increased tax rate becomes effective and on January 1, 1998, to determine the gallons in storage for purposes of determining the taxes and/or fees; provided, that in determining the amount of taxable petroleum products taxes and fees due under this section:

(1) The person may exclude the amount of taxable petroleum products in dead storage;
(2) For the inventory taken on January 1, 1998, the person may exclude gallons on which taxes and fees at the full rate have previously been paid;
(3) The person may exclude gallons of dyed diesel fuel from the tax imposed by § 67-3-202 only; and
(4) The person shall report the gallons listed in this section on forms provided by the commissioner.
(e) Where gallons in taxable inventory have not previously been subject to the predecessor motor fuel tax statute, the amount of the inventory tax is equal to the tax rate times the gallons in storage, as determined under subsection (c). In the case of an increase in the tax rate, the inventory tax is equal to the new tax rate minus the previous tax rate times the number of gallons previously taxed.
(f) Payment of this floorstock tax shall be made in accordance with § 67-3-511.
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