67-3-202 - Diesel tax.
67-3-202. Diesel tax.
(a) Subject to exemptions provided in part 4 of this chapter, a use tax of seventeen cents (17¢) per gallon is imposed upon all diesel fuel and all fuel other than gasoline that is suitable for use in a diesel-powered vehicle or that is used or consumed in this state to produce power for propelling motor vehicles; it being the purpose and intent of this section that the taxes being levied on taxable motor fuels under the provisions of this chapter are in fact a levy and assessment on the consumer, and the levy and assessment on other persons as specified in this chapter are as agents of the state for the collection of such tax.
(b) The tax imposed by this section shall be collected and paid at those times, in the manner, and by those persons specified in this chapter.
(c) With respect to purchases of diesel fuel that is indelibly dyed in accordance with internal revenue service regulations and is legal for exempt use only, such fuel shall not be considered subject to the diesel tax imposed under this section.
[Acts 1997, ch. 316, § 1; T.C.A., § 67-3-1302.]