Special Privilege Tax on Petroleum Products

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.