Part 1 General Provisions 67-3-101 – 67-3-103
Part 2 Imposition of Taxes and Fees 67-3-201 – 67-3-206
Part 3 Measurement of Tax 67-3-301 – 67-3-304
Part 4 Exemptions and Refunds 67-3-401 – 67-3-422
Part 5 Payment of Tax 67-3-501 – 67-3-515
Part 6 Bonding and Licenses 67-3-601 – 67-3-619
Part 7 Reports 67-3-701 – 67-3-706
Part 8 Enforcement Provisions 67-3-801 – 67-3-819
Part 9 General Administrative Provisions 67-3-901 – 67-3-912
Part 11 Alternative Fuels 67-3-1101 – 67-3-1120
Part 12 Highway User Fuel Tax 67-3-1201 – 67-3-1210
Part 13 Special Provisions Applicable to Limited Users and Prepaid Users 67-3-1301 – 67-3-1309
Part 14 Transportation Fuel Equity Act 67-3-1401 – 67-3-1407

Terms Used In Tennessee Code > Title 67 > Chapter 3 - Petroleum Products and Alternative Fuels Tax Law

  • Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
  • Agricultural purposes: means operating tractors or other farm equipment used exclusively, whether for hire or not, in plowing, planting, harvesting, raising or processing of farm products at a farm, nursery or greenhouse. See Tennessee Code 67-3-103
  • Agriculture: means :
    1. The land, buildings and machinery used in the commercial production of farm products and nursery stock. See Tennessee Code 1-3-105
    2. Alternative fuel: includes all forms of fuel commonly known as butane, propane, or compressed natural gas. See Tennessee Code 67-3-103
    3. Alternative fuels tax: means the per gallon tax on liquified gas and compressed natural gas imposed by part 11 of this chapter. See Tennessee Code 67-3-1201
    4. Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
    5. Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
    6. Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
    7. Authorization: means an uncancelled diesel tax prepaid user authorization issued by the commissioner. See Tennessee Code 67-3-1302
    8. Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
    9. Blended fuel: means a mixture composed of gasoline or diesel fuel and another liquid, other than a minimal amount of a product such as carburetor detergent or oxidation inhibitor, that can be used as a fuel in a highway vehicle. See Tennessee Code 67-3-103
    10. Blender: means any person that produces blended motor fuel outside the bulk transfer/terminal system. See Tennessee Code 67-3-103
    11. Blending: means the mixing of one (1) or more petroleum products, with or without another product, regardless of the original character of the product blended, if the product obtained by the blending is capable of use or otherwise sold for use in the generation of power to propel a motor vehicle, an airplane, a motorboat, or other mechanical contrivance. See Tennessee Code 67-3-103
    12. Bonded importer: means a person with a valid bonded importer's license under §. See Tennessee Code 67-3-103
    13. Bulk end user: means a person who receives into the person's own storage facilities, for the person's own consumption, transport lots of taxable motor fuel. See Tennessee Code 67-3-103
    14. Bulk plant: means a motor fuel storage and distribution facility that is not a terminal and from which motor fuel may be removed at a rack. See Tennessee Code 67-3-103
    15. 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
    16. Chambers: A judge's office.
    17. 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
    18. Commercial carrier: means any individual, person, entity, or organization that contracts to transport passengers or goods for a fee. See Tennessee Code 67-3-1403
    19. Commercial purposes: means use in a trade or business. See Tennessee Code 67-3-1101
    20. Commissioner: means the commissioner of revenue or the commissioner's designated subordinate official. See Tennessee Code 67-3-103
    21. Computer-type pump: means a pump used to dispense fuel, that has meters for registering the total sales price and gallons sold, and displays the price per gallon on the dispenser. See Tennessee Code 67-3-103
    22. Contract: A legal written agreement that becomes binding when signed.
    23. Conviction: A judgement of guilt against a criminal defendant.
    24. Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
    25. Customer-controlled pump: means a pump used for dispensing motor fuel directly to a customer who can access the pump by way of a personal key, an identification number, or a customer card that is assigned to the customer by a licensed wholesaler. See Tennessee Code 67-3-103
    26. 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
    27. Dealer: means an entity or person who:

      1. Is the operator of a retail station or other retail outlet and who delivers liquified gas into the fuel supply tanks of motor vehicles. See Tennessee Code 67-3-1101
      2. Decedent: A deceased person.
      3. Department: means the department of revenue. See Tennessee Code 67-3-103
      4. 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
      5. 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
      6. Diesel tax: means the per gallon tax on motor fuel imposed by part 2 of this chapter. See Tennessee Code 67-3-1201
      7. Diesel tax: means the tax imposed by §. See Tennessee Code 67-3-1403
      8. Diesel-powered highway vehicle: means a motor vehicle, propelled by a diesel-powered engine, that is operated, or intended to be operated, on a highway. See Tennessee Code 67-3-103
      9. Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
      10. Distributor report: means the report required under §. See Tennessee Code 67-3-103
      11. DNA analysis: means the process through which deoxyribonucleic acid (DNA) in a human biological specimen is analyzed and compared with DNA from another biological specimen for identification purposes. See Tennessee Code 40-30-302
      12. Donee: The recipient of a gift.
      13. Dyed diesel: means any diesel fuel that is indelibly dyed in accordance with internal revenue service regulations. See Tennessee Code 67-3-1403
      14. 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
      15. Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) Source: OCC
      16. Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
      17. Ethanol: means fuel grade ethanol. See Tennessee Code 67-3-103
      18. Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
      19. Export: means to obtain petroleum products in this state for sale, use, or distribution in another state. See Tennessee Code 67-3-103
      20. Exporter: means any person, other than a supplier, who purchases or otherwise holds title to taxable petroleum products in this state for the purpose of transporting or delivering the products to another state or country. See Tennessee Code 67-3-103
      21. Farm products: means flowers and plants, including cut flowers, flowering plants, potted plants, vegetables and vegetable plants, trees, shrubs, vines, ornamentals, sod, and mushrooms. See Tennessee Code 67-3-103
      22. Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
      23. Fuel alcohol: means any alcohol used or intended for use as fuel in a combustion engine or heating oil system. See Tennessee Code 67-3-103
      24. Fuel grade ethanol: means a product that meets the American Society for Testing and Materials (ASTM) standard in effect on January 1, 1995, and any successor rule, as the D-4806 specification for denatured fuel grade ethanol, for blending with gasoline for use as automatic spark-ignition engine fuels. See Tennessee Code 67-3-103
      25. 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
      26. Gasoline tax: means the per gallon tax imposed on gasoline by part 2 of this chapter. See Tennessee Code 67-3-1201
      27. Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
      28. governmental agency: includes a rescue squad chartered by the state as a nonprofit corporation or association and that is a member of the Tennessee Association of Rescue Squads, and a volunteer fire department chartered by the state as a nonprofit corporation or association. See Tennessee Code 67-3-103
      29. Gross gallons: means the total measured product, exclusive of any temperature or pressure adjustments, considerations or deductions. See Tennessee Code 67-3-103
      30. Heating oil: means a motor fuel that is burned in a boiler, furnace, or stove for heating or industrial processing purposes. See Tennessee Code 67-3-103
      31. Highway: includes public bridges and may be held equivalent to the words "county way" "county road" or "state road". See Tennessee Code 1-3-105
      32. Highway user fuel tax: means the gasoline tax, diesel tax, and/or alternative fuels tax as defined in this part at the rates set forth and in the amount determined under §. See Tennessee Code 67-3-1201
      33. Highway vehicle: means a self-propelled vehicle that is designed for use on a highway. See Tennessee Code 67-3-103
      34. Import: means to bring petroleum products into this state by any means of conveyance other than in the fuel supply tank of a motor vehicle. See Tennessee Code 67-3-103
      35. 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
      36. Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
      37. Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
      38. J Class: refers to combined farm and limited private trucks, as defined by the department. See Tennessee Code 67-3-1302
      39. Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
      40. Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
      41. Licensee: means any person who holds an uncancelled license authorized by the international fuel tax agreement and issued by a state of the United States, the District of Columbia, or a province or territory of Canada. See Tennessee Code 67-3-1201
      42. Lien: A claim against real or personal property in satisfaction of a debt.
      43. Limited user: means a person who consumes diesel fuel within this state for both licensed motor vehicles and other purposes, and who is the qualified holder of an uncancelled limited user permit issued by the commissioner. See Tennessee Code 67-3-1302
      44. Lineal descendant: Direct descendant of the same ancestors.
      45. Liquid: means any substance that is liquid at temperatures in excess of sixty degrees Fahrenheit (60°F) and at a pressure of fourteen and seven-tenths pounds per square inch (14. See Tennessee Code 67-3-103
      46. Liquified gas: means all combustible gases that exist in the gaseous state at sixty degrees Fahrenheit (60°F) and at a pressure of fourteen and seven-tenths pounds per square inch (14. See Tennessee Code 67-3-1101
      47. Livestock: means all equine as well as animals that are being raised primarily for use as food or fiber for human utilization or consumption including, but not limited to, cattle, sheep, swine, goats, and poultry. See Tennessee Code 1-3-105
      48. Local transit company: means a person that is a scheduled, common carrier, public passenger, land transportation service, serving regular routes within a municipality and the territory adjacent to the municipality, or within a metropolitan government created under title 7, Chapters 1 3, and that generates at least sixty percent (60%) of the total passenger fare from such routes. See Tennessee Code 67-3-103
      49. Means of transportation: means any vehicle or other device employed by a commercial carrier for the purpose of transporting passengers or goods for a fee, including, but not limited to, motor vehicles, trains, and aircraft. See Tennessee Code 67-3-1403
      50. Month: means a calendar month. See Tennessee Code 1-3-105
      51. Motor fuel: means gasoline, diesel fuel and blended fuel. See Tennessee Code 67-3-103
      52. Motor vehicle: means a vehicle that is propelled by an internal combustion engine or motor and is designed to permit the vehicle's use on highways. See Tennessee Code 67-3-103
      53. Motor vehicle: means a self-propelled vehicle licensed for highway use. See Tennessee Code 67-3-1101
      54. net gallon: means the amount of petroleum product, corrected to a temperature of sixty degrees Fahrenheit (60°F) and a pressure of fourteen and seven tenths pounds per square inch (14. See Tennessee Code 67-3-103
      55. 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.
      56. Oversight: Committee review of the activities of a Federal agency or program.
      57. Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
      58. Permissive supplier: means any person who is not subject to the general taxing jurisdiction of this state, but who:

        1. Is a position holder in a federally qualified terminal located outside this state. See Tennessee Code 67-3-103
        2. Permittee: means any person who is the holder of a permit authorized to be issued under §. See Tennessee Code 67-3-1201
        3. 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
        4. Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
        5. 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°) or above on the American Petroleum Institute (API) scale. See Tennessee Code 67-3-103
        6. Position holder: includes a terminal operator who owns petroleum products in the terminal. See Tennessee Code 67-3-103
        7. Prepaid user: means a person who is the qualified holder of an uncancelled diesel tax prepaid user authorization issued by the commissioner. See Tennessee Code 67-3-1302
        8. Property: includes both personal and real property. See Tennessee Code 1-3-105
        9. Public defender: Represent defendants who can't afford an attorney in criminal matters.
        10. Qualified motor vehicle: means a motor vehicle used, designed or maintained for transportation of persons or property and:

          1. Having two (2) axles and a gross vehicle weight or registered gross vehicle weight exceeding twenty-six thousand pounds (26,000 lbs. See Tennessee Code 67-3-1201
          2. 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
          3. 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
          4. Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in a perceivable form. See Tennessee Code 1-3-105
          5. Recreational vehicle: means vehicles such as motor homes, pickup trucks with attached campers, and buses when used exclusively for personal pleasure by an individual. See Tennessee Code 67-3-1201
          6. Refiner: means a person that owns, operates, or otherwise controls a refinery within the United States. See Tennessee Code 67-3-103
          7. 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
          8. Removal: means any physical transfer other than by evaporation, loss, or destruction, of petroleum products from a terminal, manufacturing plant, customs custody, pipeline, marine vessel (e. See Tennessee Code 67-3-103
          9. Reporter: Makes a record of court proceedings and prepares a transcript, and also publishes the court's opinions or decisions (in the courts of appeals).
          10. Representative: when applied to those who represent a decedent, includes executors and administrators, unless the context implies heirs and distributees. See Tennessee Code 1-3-105
          11. Retail station: means any service station, garage, truck stop or other outlet dispensing motor fuel from a container equipped with a computer-type pump that measures fuel passing through it. See Tennessee Code 67-3-103
          12. Retailer: means a person that engages in the business of selling or distributing petroleum products to the end user within this state through a retail station. See Tennessee Code 67-3-103
          13. Road: includes public bridges and may be held equivalent to the words "county way" "county road" or "state road". See Tennessee Code 1-3-105
          14. signed: includes a mark, the name being written near the mark and witnessed, or any other symbol or methodology executed or adopted by a party with intention to authenticate a writing or record, regardless of being witnessed. See Tennessee Code 1-3-105
          15. State: means the state of Tennessee. See Tennessee Code 67-3-103
          16. State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
          17. Statute: A law passed by a legislature.
          18. Statute of limitations: A law that sets the time within which parties must take action to enforce their rights.
          19. Supplier: means a person that meets all the following conditions:
            1. Is subject to the general taxing jurisdiction of this state. See Tennessee Code 67-3-103
            2. Tank wagon: means a straight truck having multiple compartments designed or used to carry petroleum products. See Tennessee Code 67-3-103
            3. Taxable motor fuel: means gasoline, diesel fuel, kerosene, and blends thereof, and any other substance blended with any of these fuels. See Tennessee Code 67-3-103
            4. 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
            5. Terminal operator: means a person that:

              Owns, operates, or otherwise controls a terminal. See Tennessee Code 67-3-103

            6. 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
            7. Transport truck: means a semi-trailer combination rig or tank wagon designed or used for the purpose of transporting petroleum products over the highways. See Tennessee Code 67-3-103
            8. 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
            9. Trial: A hearing that takes place when the defendant pleads "not guilty" and witnesses are required to come to court to give evidence.
            10. Trustee: A person or institution holding and administering property in trust.
            11. Two-party exchange: means a transaction in which a petroleum product is transferred from one licensed supplier or licensed permissive supplier to another licensed supplier or licensed permissive supplier pursuant to an exchange agreement:

              Which transaction includes a transfer from the person that holds the inventory position for taxable motor fuel in the terminal as reflected on the records of the terminal operator. See Tennessee Code 67-3-103

            12. Undyed diesel fuel: means diesel fuel not dyed under United States environmental protection agency rules for high sulfur diesel fuel nor dyed under internal revenue service rules for low sulphur fuel, nor pursuant to any other requirements subsequently set by the environmental protection agency or internal revenue service. See Tennessee Code 67-3-103
            13. United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
            14. User: means a person who operates a motor vehicle in this state that is propelled by liquified gas or compressed natural gas. See Tennessee Code 67-3-1101
            15. Vehicle fuel supply tank: means any receptacle on a motor vehicle designed to supply fuel for the propulsion of the motor vehicle or from which fuel is supplied for the propulsion of the motor vehicle. See Tennessee Code 67-3-103
            16. Verdict: The decision of a petit jury or a judge.
            17. Vessel: means a barge or other marine conveyance used to transport petroleum products in bulk. See Tennessee Code 67-3-103
            18. 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
            19. written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
            20. Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105