Reviewed Date: 12/20/2021
Revenue Class: Intergovernmental Revenue
Account No.: 33552
Description: This represents what is referred to as the Special Privilege Tax or the Petroleum Special Products Tax/Gas Inspection Fee and the Export Tax. The Special Privilege Tax establishes a local government fund created by a tax of one cent per gallon on all petroleum products. The export tax is a tax of 1/20th of one cent per gallon of petroleum product that is stored in Tennessee or stored in Tennessee and then exported. If the special privilege tax has already been paid, then 19/20th of the Special Privilege Tax can be credited on the Export Tax return. The local share is distributed to municipalities based on population.
Authorization: T.C.A. § 67-3-203; T.C.A. § 67-3-205; T.C.A. § 67-3-906
Requirements or Restrictions: As noted in T.C.A.
Current Rate: The state distributes $619,833 per month to cities on a population basis. Before the money is distributed to cities, the state retains $10,000 per month and allocates it to The University of Tennessee Center for Government Training.
Frequency of Payment: Monthly.
Late Pay Penalty: N/A
Exemptions: As noted in T.C.A. § 67-3-401 et seq. Some of the exemptions include government agencies, products used for agricultural purposes, exported products, kerosene, and aviation fuels.
Collection: Revenue is distributed monthly by the state.
Use Restrictions: Although this money is general fund revenue, it is limited in the same manner as the state gasoline and motor fuel tax (to fund city street projects).