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Motor Fuel Taxes

Taxes at a Glance

Special Tax - A special tax is imposed on all petroleum products.
Due Date - 20th day of the month following the month of activity
Tax Rate - $0.01 per gallon

Environmental Assurance Fee - An environmental assurance fee is imposed on all petroleum products.
Due Date - 20th day of the month following the month of activity
Tax Rate - $0.004 per gallon

Gasoline Tax - A tax is imposed on gasoline, fuel alcohol and substitutes when first imported into Tennessee.
Due Date - 20th day of the month following the month of activity
Tax Rate - $0.20 per gallon

Diesel Tax - A tax is imposed on diesel fuel when it crosses the terminal rack or upon import from a facility below the terminal bulk system.
Due Date - 20th day of the month following the month of activity
Tax Rate - Clear diesel: $.17 per gallon fee; Dyed diesel: tax exempt from motor fuel if used off road

Liquified Gas Tax - A use tax is imposed on liquified gas used for the propulsion of motor vehicles on the public highways of this state.
Due Date - Liquified Gas Users shall pay in advance annually on each motor vehicle licensed in Tennessee. Dealers file a report on or before July 25 of each year.
Tax Rate - $0.14 per gallon

Compressed Natural Gas Tax - A use tax is imposed on compressed natural gas used for the propulsion of motor vehicles on the public highways of this state.
Due Date - 25th day of the month following the month of activity
Tax Rate - $0.13 cents per gallon

Export Tax - A tax is imposed on all petroleum products subject to the Special Tax that are exported to points outside of the state.
Due Date - 20th day of the month following the month of activity
Tax Rate - 1/20th of $0.01 per gallon (If the $0.01 Special Tax has already been paid, then 19/20th of $0.01 per gallon of the special privilege tax may be credited on a monthly return, or alternatively, refunded.)

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