Revenue Class: Intergovernmental Revenue

Fund: General

Account No.: 33552

Description: This represents what is referred to as the Special Privilege Tax or the Petroleum Special Products Tax/Gas Inspection Fee and the Export Tax. The Special Privilege Tax establishes a local government fund created by a tax of one cent per gallon on all petroleum products. The export tax is a tax of 1/20^th of one cent per gallon of petroleum product that is stored in Tennessee or stored in Tennessee and then exported. If the special privilege tax has already been paid, then 19/20^th of the Special Privilege Tax can be credited on the Export Tax return. The local share is distributed to municipalities based on population.

Authorization: T.C.A. § 67-3-203; T.C.A. § 67-3-205; T.C.A. § 67-3-906

Requirements or Restrictions: As noted in T.C.A.

Current Rate: The state distributes $619,833 per month to cities on a population basis. Before the money is distributed to cities, the state retains $10,000 per month and allocates it to The University of Tennessee Center for Government Training.

Frequency of Payment: Monthly.

Late Pay Penalty: N/A

Exemptions: As noted in T.C.A. § 67-3-401 et seq. Some of the exemptions include government agencies, products used for agricultural purposes, exported products, kerosene, and aviation fuels.

Collection: Revenue is distributed monthly by the state.

Use Restrictions: Although this money is general fund revenue, it is limited in the same manner as the state gasoline and motor fuel tax (to fund city street projects).