Tennessee § 67-3-202 - Diesel tax.

§ 67-3-202. Diesel tax.

Subject to exemptions provided in part 4 of this chapter, and except as provided in subsection (c), a use tax is imposed upon all diesel fuel and all fuel other than gasoline that is suitable for use in a diesel-powered vehicle or that is used or consumed in this state to produce power for propelling motor vehicles; it being the purpose and intent of this section that the taxes being levied on taxable motor fuels under this chapter are in fact a levy and assessment on the consumer, and the levy and assessment on other persons as specified in this chapter are as agents of the state for the collection of such tax. The rate of the tax imposed by this section shall be: On or after July 1, 2017, through June 30, 2018, twenty-one cents (21¢) per gallon; On or after July 1, 2018, through June 30, 2019, twenty-four cents (24¢) per gallon; and On or after July 1, 2019, twenty-seven cents (27¢) per gallon. The tax imposed by this section shall be collected and paid at those times, in the manner, and by those persons specified in this chapter. Notwithstanding subsection (a), diesel fuel that is indelibly dyed in accordance with internal revenue service regulations and is legal for exempt use only shall not be considered subject to the diesel tax imposed under this section, except when used by a commercial carrier to produce power for a means of transportation, as defined in the Transportation Fuel Equity Act, compiled in part 14 of this chapter, in which case a use tax of seventeen cents (17¢) per gallon is imposed on such fuel. Acts 1997, ch. 316, § 1; T.C.A., § 67-3-1302 ; Acts 2014, ch. 908, § 1; 2017, ch. 181, §§ 17, 18. Compiler's Notes. Former title 67, ch. 3, parts 12-24 were transferred to title 67, ch. 3, parts 1-13 in 2003. See the parallel reference table for former and new section locations in § 67-3-101 . Acts 2017, ch. 181, § 1 provided that the act, which amended this section, shall be known and may be cited as the “Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy (IMPROVE) Act” or the “2017 Tax Cut Act.” Amendments. The 2014 amendment rewrote (c) which read: “With respect to purchases of diesel fuel that is indelibly dyed in accordance with internal revenue service regulations and is legal for exempt use only, such fuel shall not be considered subject to the diesel tax imposed under this section.” The 2017 amendment, in the present introductory paragraph of (a), substituted “and except as provided in subsection (c), a use tax” for “a use tax of seventeen cents (17¢) per gallon,” in the first sentence, and added the introductory clause at the end; added (a)(1)-(3); and rewrote (c) which read: “(c) Except when used by a commercial carrier to produce power for a means of transportation, as defined in the Transportation Fuel Equity Act, compiled in part 14 of this chapter, diesel fuel that is indelibly dyed in accordance with internal revenue service regulations and is legal for exempt use only shall not be considered subject to the diesel tax imposed under this section.” Effective Dates. Acts 2014, ch. 908, § 18. July 1, 2014. Acts 2017, ch. 181, § 38. July 1, 2017.