Motor Fuels Tax Minute, Episode 63: Transmix in Tennessee

In this week’s episode of Motor Fuels Tax Minute, our hosts look at how Tennessee defines transmix.

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Detailed Description of Weaver’s Motor Fuels Tax Minute, Episode 63

00:00:00
Leanne: Welcome to Weaver’s Motor Fuels Tax Minute, the vlog where we talk all things motor fuel. Last time, Kelly, you gave us the federal definition of transmix and how it’s two refined products coming together. And we thought about, how do the states define it? Do they define it similarly? Differently?

Is there a state in particular that you’ve been looking at recently?

00:00:21
Kelly: Yeah, a really great one to look into is actually Tennessee because Tennessee grabs onto that definition just like federal. Two different products that meet in the pipeline, that gives us transmix. What’s interesting about Tennessee, where federal leaves it in the pipeline, Tennessee actually goes a step further. They actually say that transmix is two different products within a refinery or terminal that result in an off-grade mixture. And I’ve seen this before, where a terminal has a tank filled with gasoline, somebody accidentally puts some diesel in there. That now has become transmix, and that could be subject to tax in Tennessee. That’ll be a topic we dive into a little later.

00:01:05
Leanne: Well, that’s interesting because I know from last time, we talked about how the IRS keeps it in the pipeline. So that would lead me to think that if you’ve got it in a tank or somewhere else, they’re going to view that as contaminated fuel and therefore treat it differently.

00:01:21
Kelly: Yep. It was definitely an interesting thing that I found out when it happened to a former client and something that we had to look into, so everyone else definitely keep that in mind.

00:01:32
Leanne: Never a dull day in motor fuels.

00:01:35
Kelly: It is not. Excitement always continues.

00:01:39
Leanne: Well, that’s it for this week’s Motor Fuels Tax Minute. Don’t forget to submit comments, questions and topics you’d like to see. We’ll send you some swag if your topic makes it onto our vlog. Thank you.