Section 67-3-303 - Measurement of special privilege tax and environmental assurance fee(a) The tax imposed by § 67-3-203 and the fee imposed by § 67-3-204 on petroleum products shall be measured by gallons of petroleum products removed, other than through a bulk transfer, by a licensed supplier:(1) From the bulk transfer/terminal system or from a qualified terminal or refinery within this state;(2) From the bulk transfer/terminal system or from a qualified terminal or refinery outside this state for delivery to a location in this state as represented on the shipping papers; provided, that the supplier imports such taxable petroleum products for the supplier's own account, or such supplier has made a tax precollection election under § 67-3-503;(3) Upon sale in qualified terminal or refinery in this state to an unlicensed supplier; or(4) In other cases in the same manner as the tax imposed by § 4081 of the Internal Revenue Code of 1986 (26 U.S.C. § 4081) or the Code of Federal Regulations.(b) Anything to the contrary notwithstanding, the special privilege tax and the environmental assurance fee on gasoline shall be measured and levied at the time the product first comes to rest in this state.(c) With respect to the operator of a terminal in this state, the tax imposed by § 67-3-203 and the fee imposed by § 67-3-204, shall be measured and levied annually on petroleum products other than gasoline by the amount by which net gallons lost or unaccounted for, including transmix, within the terminal exceed the sum of net gallon gains, plus one-half of one percent (0.5%) times the number of all net gallons removed from such terminal across the rack or in bulk. Acts 1997 , ch. 316, § 1; T.C.A., § 67-3-1403.