Fuel Excise Tax Rules for Retailers - New South Memphis

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

New South Memphis, Tennessee retailers selling gasoline or other motor fuels are subject primarily to Tennessee motor fuel excise laws and the state collection system. This guide explains who is responsible for tax collection, where retailers fit in the collection chain, registration and reporting pathways, and how enforcement and penalties operate for fuel tax issues that affect businesses operating in New South Memphis. For city-level licensing and business tax obligations, retailers should consult local finance and licensing offices as well as the Tennessee Department of Revenue for motor fuel specifics.[1]

Overview of Applicability

Municipalities typically do not impose separate retail gasoline excise taxes in Tennessee; the motor fuel excise tax is administered at the state level. Retail sellers generally pass through fuel taxes embedded in wholesale/distributor pricing but must comply with state registration, recordkeeping, and remittance rules where applicable.[1]

Check state registration requirements before selling wholesale fuel in Tennessee.

Penalties & Enforcement

The following summarizes enforcement roles and typical penalty categories relevant to fuel excise tax compliance for retailers operating in New South Memphis.

  • Enforcer: Primary enforcement of motor fuel excise tax is by the Tennessee Department of Revenue; local finance or business tax offices handle municipal business licensing and related local taxes where applicable.[1]
  • Monetary fines: Specific fine amounts for retail fuel excise violations are not specified on the cited Tennessee motor fuel tax page and must be confirmed from the department or statute.[1]
  • Escalation: Whether penalties increase for repeat or continuing offences is not specified on the cited page and may be governed by statute or administrative rule; contact the Department of Revenue for precise escalation rules.[1]
  • Non-monetary sanctions: Possible non-monetary actions can include assessment notices, administrative holds on permits or accounts, seizure of untaxed fuel inventory, and referral to courts for collection or injunctive relief; specifics are handled by the enforcing agency and official procedures.[1]
  • Inspection and complaint pathways: Report suspected evasion or noncompliance to the Tennessee Department of Revenue motor fuel unit or to the City of Memphis finance/business tax office for local licensing concerns.[1]
  • Appeals and review: Appeal processes are determined by the assessing agency and may include administrative protest and appeal to state tax tribunals or courts; specific time limits for appeal are not specified on the cited page and should be confirmed with the Department of Revenue.[1]
If a specific monetary penalty or time limit is required, request the current rule or statute from the Department of Revenue.

Applications & Forms

Retailers should register with the Tennessee Department of Revenue for any required motor fuel accounts and with the City of Memphis for local business tax or licensing where applicable. Exact form numbers, filing frequencies, and fees for motor fuel accounts are published by the Department of Revenue; if a form number is required and not visible, it is not specified on the cited page.[1]

  • State motor fuel registration: apply via the Tennessee Department of Revenue motor fuel account registration (see link).[1]
  • Local business license: obtain or confirm City of Memphis business tax account for retail operations in New South Memphis as required by the municipal office.[2]

Compliance Checklist for Retailers

  • Register with Tennessee Department of Revenue before selling taxable motor fuels if required by state rules.[1]
  • Secure any local business license or city permits from City of Memphis finance/licensing as applicable.[2]
  • Maintain accurate invoice and inventory records showing purchased and sold fuel volumes and amounts of tax collected or remitted.
  • File reports and remit any required payments on the schedule set by the Tennessee Department of Revenue; consult the department for filing frequency and deadlines.[1]

FAQ

Who is liable for motor fuel excise tax in New South Memphis?
Liability for excise tax is governed by Tennessee law; wholesalers/distributors commonly remit excise taxes, and retailers must comply with registration, reporting, and recordkeeping obligations as required by the Tennessee Department of Revenue.[1]
Does New South Memphis impose a separate city gasoline excise tax?
No separate municipal gasoline excise tax was located on the cited official pages; the primary motor fuel excise framework for retailers is at the Tennessee Department of Revenue.[1]
How do I report suspected fuel tax evasion?
Report suspected evasion to the Tennessee Department of Revenue motor fuel unit; for local licensing issues, contact the City of Memphis finance/business tax office.[1]

How-To

  1. Confirm whether your retail activity requires a motor fuel account with the Tennessee Department of Revenue by reviewing the department's motor fuel guidance.[1]
  2. Register for any required state motor fuel accounts and for a City of Memphis business tax account if operating in New South Memphis.[1]
  3. Implement point-of-sale procedures to document fuel sales and retain purchase invoices and inventory records to support tax reporting.
  4. File returns and remit taxes according to Tennessee Department of Revenue instructions and preserve records for the retention period stated by the department.
  5. If assessed or audited, follow the Department of Revenue appeal procedures and request administrative review within the agency timeframes; consult the department for exact deadlines.[1]
Keep copies of all purchase invoices and sales invoices for fuel transactions for audit readiness.

Key Takeaways

  • State motor fuel excise law is the primary authority for gasoline taxes affecting New South Memphis retailers.
  • Contact the Tennessee Department of Revenue for motor fuel registration, and the City of Memphis finance office for local business tax/licensing.
  • Maintain clear records and confirm registration early to avoid enforcement action.

Help and Support / Resources

  1. [1] Tennessee Department of Revenue - Motor Fuel Tax
  2. [2] City of Memphis Finance Department

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