Gasoline Excise Tax Rules - Memphis, Tennessee

Taxation and Finance Tennessee 4 Minutes Read ยท published February 08, 2026 Flag of Tennessee

In Memphis, Tennessee, businesses and fuel vendors need to understand whether motor fuel excise taxes are set or collected at the city level or by the State of Tennessee. This guide explains where to find official rules, who enforces collection, common compliance steps, and how to report suspected violations for Memphis operations. It summarizes official sources and points you to the forms and contacts you may need to comply.[1]

Confirm early whether a sale is subject to state or local fuel tax rules.

How gasoline excise taxes are applied

In Tennessee, motor fuel excise taxes are administered by the Tennessee Department of Revenue; municipal governments typically do not levy separate gasoline excise taxes unless specifically authorized by state law and a city ordinance. For Memphis-specific ordinances and municipal tax authority, consult the city code and the City of Memphis Finance Department for local business tax guidance.[2][3]

Penalties & Enforcement

Who enforces: State motor fuel taxes are enforced by the Tennessee Department of Revenue. Any local taxes or fees relevant to fuel retailers or distributors would be administered by the City of Memphis Finance Department or another designated city office; see the official contacts below.[2][1]

  • Fines and monetary penalties: not specified on the cited page for a Memphis municipal gasoline excise tax; state motor fuel penalty schedules and interest rules are published by the Tennessee Department of Revenue and should be consulted directly for amounts.[2]
  • Escalation: first, repeat, or continuing offence escalation ranges are not specified on the cited Memphis municipal pages; see Tennessee Department of Revenue materials for state escalation and enforcement procedure details.[2]
  • Non-monetary sanctions: potential actions include assessment notices, administrative holds, license suspension or revocation (where local business licenses apply), and referral to court for collection or criminal prosecution; specific City of Memphis measures for fuel vendors are not specified on the cited municipal pages.[1]
Penalties for motor fuel tax matters are primarily administered by the Tennessee Department of Revenue for state taxes.

Applications & Forms

Registration, returns, and remittance for state motor fuel taxes are handled through the Tennessee Department of Revenue. Specific Memphis city forms for a municipal gasoline excise tax are not published on the cited municipal pages if a separate municipal tax exists; vendors should use state motor fuel tax forms when the liability is state-level and contact the City of Memphis Finance Department for any local registration requirements.[2][1]

  • Where to register: Tennessee Department of Revenue motor fuel registration and filing portals for state tax accounts.[2]
  • City advice and local business licensing: contact the City of Memphis Finance Department for local licensing or registration questions.[1]

Common violations

  • Failure to register as a fuel distributor or to file required returns (penalties: not specified on the cited Memphis pages; check Tennessee Department of Revenue schedules).[2]
  • Late payment or underpayment of excise tax (amounts and interest: see Tennessee Department of Revenue).[2]
  • False reporting of gallons sold or claiming ineligible exemptions (sanctions and enforcement: not specified on the cited Memphis pages).[2]

Action steps for Memphis businesses

  • Confirm whether the tax at issue is a state motor fuel excise tax or a local charge by reviewing Tennessee Department of Revenue guidance and the Memphis municipal code.[2]
  • Contact the City of Memphis Finance Department for local business tax or licensing questions and to report potential municipal violations.[1]
  • If subject to state tax, register and file through the Tennessee Department of Revenue and keep records of purchases, sales, and gallons for audit support.[2]
Keep complete sales and delivery records for at least the period required by Tennessee tax rules.

FAQ

Does the City of Memphis charge a separate gasoline excise tax?
The City of Memphis municipal code does not publish a separate gasoline excise tax on the pages cited; state motor fuel excise taxes are administered by the Tennessee Department of Revenue.[3][2]
Who enforces motor fuel excise taxes for Memphis sellers?
State motor fuel excise taxes are enforced by the Tennessee Department of Revenue; City of Memphis Finance handles local business taxes and licensing questions.[2][1]
Where do I find forms and how do I pay?
State motor fuel tax registration, returns, and payment portals are on the Tennessee Department of Revenue site; contact City of Memphis Finance for any local payment obligations.[2][1]

How-To

  1. Check Tennessee Department of Revenue motor fuel guidance to determine state-level obligations and find applicable forms.[2]
  2. Search the City of Memphis municipal code for any local ordinance imposing a gasoline excise tax or local surcharge.[3]
  3. Contact City of Memphis Finance for local licensing or to confirm whether a city charge applies to your operation.[1]
  4. If liable for state tax, register, file, and remit through the Tennessee Department of Revenue and maintain records for audit.
When in doubt, register and ask for written guidance to reduce audit risk.

Key Takeaways

  • Most motor fuel excise tax administration for Memphis businesses is at the state level with the Tennessee Department of Revenue.[2]
  • Contact the City of Memphis Finance Department for local business tax or licensing issues that may affect fuel sellers.[1]

Help and Support / Resources

  1. [1] City of Memphis Finance Department
  2. [2] Tennessee Department of Revenue - Motor Fuel Taxes
  3. [3] City of Memphis Code of Ordinances (Municode)

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