Rules & Regulations of the State of Tennessee
Title 1320 - Revenue
Subtitle 1320-07 - Petroleum Tax Division
Chapter 1320-07-04 - Exemption and Refund of Taxes on Petroleum Products
Section 1320-07-04-.04 - GOVERNMENTAL REFUNDS

Universal Citation: TN Comp Rules and Regs 1320-07-04-.04

Current through September 24, 2024

(1) Beginning January 1, 1979, a dealer or distributor may claim a refund on any tax paid gasoline or other petroleum products sold to a governmental unit holding a valid exemption permit.

(a) Applicable gasoline tax and the special tax shall not be passed on in sales to a governmental unit holding a valid exemption permit.

(b) A refund of all but one and one half percent (1 1/2%) of the tax paid per gallon of gasoline will be made to persons entitled to a refund for tax-exempt sales to governmental units. This reflects the normal gallonage allowance.

(c) All governmental units are exempt from payment of the motor vehicle fuel use tax.

(2) The storage facilities required to be used by governmental units shall be subject to inspection by the department or by any person duly authorized by the commissioner of revenue. Purchase records of governmental units shall be subject to inspection to insure compliance with exemption requirements of the law.

(3) A sale to a governmental unit by a retail filling station is not a sale eligible for a tax refund. A retail filling station selling to a governmental unit may, however, charge and collect all applicable taxes from the purchasing unit.

(4) Any person using gasoline purchased for governmental use, for any purpose other than governmental use shall be subject to all penalties under existing statutes. In no instance may gasoline purchased for governmental use be placed in any vehicle or equipment owned by a private individual firm or corporation even if such individual, firm or corporation is engaged in activities on behalf of the governmental unit, exclusive of equipment lease agreements.

Authority: T.C.A. § 67-1-102.

Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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