Bulk fuel requirements - Tennessee

Motor carriers wishing to purchase and store bulk fuel within Tennessee, can purchase the fuel either as tax-paid, or tax-free. If the fuel use tax is paid at the time of purchase, it is reported on the reverse side of carrier’s quarterly Fuel Tax Report. There is no additional license/permit required by the carrier, and no additional tax return is required to be filed. Withdrawal summaries must be completed by carriers who maintain Tennessee bulk storage on which the tax has been paid. Do not include retail purchases of fuel not placed in equipment subject to the law. Credit can be taken only on fuel withdrawn from Tennessee bulk storage and placed in qualified equipment.

Should the carrier be using a portion of their bulk fuel for off-highway usage, they are able to purchase fuel tax-free, providing they have a limited fuel user permit. Separate records must be kept of fuel used for off-highway use and fuel used for on-highway use.

Bulk fuel used by vehicles for on-highway use is then reported on a monthly Limited User Report which carrier must file in addition to their regular interstate Fuel Tax Report. Fuel tax paid with the Limited User report is based on carrier’s withdrawals only, while credit for payment of the tax can be taken on the Fuel Tax Report. Each limited user must maintain inventory or meter readings and records of fuel purchases each quarter. The original fuel receipts for bulk purchases must be sent in with the limited user return, whereas the withdrawal tickets are kept in the carrier’s office.

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