67-3-1004 - Tax authorized.
67-3-1004. Tax authorized.
(a) Gasoline shall be taxed under this part only if the county, municipality, or metropolitan government in which it is purchased has adopted the tax, regardless of where the gasoline purchased for such vehicle is used.
(b) Other provisions of the law to the contrary notwithstanding, any county, metropolitan government or incorporated municipality which operates, or in which is operated by a municipality in a county whose population is not less than forty-one thousand (41,000) nor more than forty-one thousand five hundred (41,500), according to the 1980 federal census or any subsequent federal census, or in the future may undertake to operate, either by itself or through a transit authority or in cooperation with another county, metropolitan government, or incorporated municipality, a public transportation system may levy, as provided in §§ 67-3-1007 and 67-3-1008, a special privilege tax on the sale of gasoline by every importer, every supplier and every wholesaler for the privilege of engaging in and carrying on such business within its jurisdiction.
(c) The tax shall be in an amount equal to one cent (1¢) on the sale of each gallon of gasoline within that jurisdiction, and the liability for the tax shall attach upon sale at the terminal rack; or, if product is received in this state outside the bulk transfer/terminal system, then the tax shall attach at first sale. The tax shall be collected as provided in § 67-3-1010. It is the intent of the general assembly that the additional amount of tax resulting from the provisions of this part shall not exceed one cent (1¢) per gallon.
(d) Once any jurisdiction imposes the tax, the jurisdiction may repeal its imposition by the affirmative vote of a majority of the voting membership of that jurisdiction's legislative body or by a vote of the people in the manner outlined in §§ 67-3-1007 and 67-3-1008.
(e) All gasoline distributed by any importer, supplier or wholesaler to any of its retail stations in a taxing jurisdiction shall be deemed to have been sold.
(f) It is the intent of the general assembly that a gallon of gasoline shall be taxed only once pursuant to the provisions of this part and the amount of that tax shall not exceed one cent (1¢) per gallon.
[Acts 1997, ch. 316, § 1; T.C.A., § 67-3-2104.]