Tennessee Code 67-3-805 – Right to rely
Terms Used In Tennessee Code 67-3-805
- Bonded importer: means a person with a valid bonded importer's license under §. See Tennessee Code 67-3-103
- Destination state: means the state, territory, or foreign country to which petroleum products are directed for resale or use. See Tennessee Code 67-3-103
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- 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
- 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
- Terminal operator: means a person that:
(i) Owns, operates, or otherwise controls a terminal. See Tennessee Code 67-3-103 - Transporter: means any operator of a pipeline, barge, railroad or transport truck engaged in the business of transporting petroleum products. See Tennessee Code 67-3-103
The supplier and the terminal operator shall be entitled to rely for all purposes of this chapter on the representation by the transporter, the shipper or the shipper’s agent, as to the shipper’s intended state of destination and tax exempt use. The shipper, the importer, the transporter, the shipper’s agent and any purchaser, but not the supplier or terminal operator, shall be jointly and severally liable for any taxes and fees otherwise due to the state as a result of an unlawful diversion of the petroleum products from the represented destination state. A terminal operator shall be entitled to rely on the representation of a licensed supplier or bonded importer with respect to the supplier’s obligation to collect taxes and fees and the related shipping paper representation as shown on the shipping paper as provided by § 67-3-801.