Description.  The special privilege tax on petroleum products is in addition to the gasoline and diesel taxes and is imposed on all petroleum products, subject to certain exceptions. T.C.A. § 67-3-203. This tax is administered by the Tennessee Department of Revenue.

Rate:   One cent (1¢) per gallon. T.C.A. § 67-3-203.

Distribution.  The special tax on petroleum products is distributed as follows:

1. Two percent (2%) to general fund for administrative purposes
2. $12,017,000 per year to the local government fund
   a.  $381,583 monthly to county highway departments on the basis of county population.
   b.  $619,833 monthly to cities on the basis of their population, less $10,000 monthly to the Center for Government Training for in-service training of local government officials and employees.
3. Remainder to the state highway fund. T.C.A. § 67-3-906.