§ 67-3-302 — Measurement of diesel tax

(a) The tax imposed by § 67-3-202 shall be measured by taxable gallons removed, other than through a bulk transfer, by a licensed supplier: (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 motor fuel for the supplier's own account, or such supplier has made a tax precollection election under § 67-3-503 ; (3) Upon sale in a 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) With respect to the operator of a terminal in this state, the tax imposed by § 67-3-202 shall be measured and levied annually on taxable motor fuel 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.

Legislative History

Acts 1997 , ch. 316, § 1; T.C.A., §67-3-1402.