(a) Except as otherwise provided in this chapter, no purchases of undyed diesel fuel are permitted tax-free and all purchasers of diesel fuel will be required to purchase either undyed, tax-paid diesel fuel, or dyed, tax-free diesel fuel.
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Terms Used In Tennessee Code 67-3-1303

  • Commissioner: means the commissioner of revenue or the commissioner's designated subordinate official. See Tennessee Code 67-3-103
  • Diesel fuel: means any liquid that is commonly or commercially known or sold as a fuel that is suitable for use in a diesel-powered highway vehicle. See Tennessee Code 67-3-103
  • Limited user: means a person who consumes diesel fuel within this state for both licensed motor vehicles and other purposes, and who is the qualified holder of an uncancelled limited user permit issued by the commissioner. See Tennessee Code 67-3-1302
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Supplier: means a person that meets all the following conditions:
    (i) Is subject to the general taxing jurisdiction of this state. See Tennessee Code 67-3-103
  • Undyed diesel fuel: means diesel fuel not dyed under United States environmental protection agency rules for high sulfur diesel fuel nor dyed under internal revenue service rules for low sulphur fuel, nor pursuant to any other requirements subsequently set by the environmental protection agency or internal revenue service. See Tennessee Code 67-3-103
  • Wholesaler: means a person who acquires petroleum products from a supplier, importer or from another wholesaler, for subsequent sale and distribution at wholesale by tank cars, transport trucks or vessels. See Tennessee Code 67-3-103
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(b) An uncancelled limited user permit entitles the permittee to purchase from a licensed wholesaler or supplier undyed diesel fuel tax-free at the time of purchase, subject to the permitee’s obligation to report and pay tax as provided in § 67-3-1304.
(c) All uncancelled permits under the prior law that are held by limited users on December 31, 1997, where the permittee made taxable use of no more than three thousand six hundred gallons (3,600 gals.) of diesel fuel during the calendar year 1997, shall remain effective on January 1, 1998, and until otherwise revoked, cancelled or terminated as further provided by this section.
(d) All other permits held by limited users under the prior law are revoked effective January 1, 1998.
(e) A holder of a permit, that has been made effective on January 1, 1998, pursuant to subsection (c), may continue to purchase undyed diesel fuel free of tax during each successive calendar year and until such holder’s purchases of undyed taxable diesel fuel exceeds three thousand six hundred gallons (3,600 gals.) during a particular year.
(f) A holder whose purchases of undyed taxable diesel fuel exceed three thousand six hundred gallons (3,600 gals.) during a particular year shall notify the commissioner of such fact, and the commissioner shall revoke the permit.
(g) Upon revocation of a holder’s permit, the commissioner shall notify each of holder’s suppliers of the revocation.
(h) Purchasers of tax-paid undyed diesel fuel who have used such fuel in a tax-exempt manner may obtain refunds pursuant to part 4 of this chapter.
(i) No new permits shall be issued by the commissioner on or after January 1, 1998.
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