Section 67-3-505 - Terminal operator liability(a) The terminal operator of a terminal in this state is jointly and severally liable for the taxes and fees imposed under §§ 67-3-202 - 67-3-204, and shall remit payment to the department upon discovery of either of the following conditions: (1) The supplier and/or bonded importer with respect to the taxable petroleum products is a person other than the terminal operator and is not licensed; provided, that the terminal operator shall be relieved of liability if the terminal operator establishes all of the following:(A) A valid terminal operator's license issued for the facility from which the petroleum product is withdrawn;(B) An unexpired notification certificate from the supplier as required by the department or the internal revenue service; and(C) No reason to believe that any information on the certificate is false; or(2) In connection with the removal of diesel fuel that is not dyed and marked in accordance with internal revenue service requirements, the terminal operator provides any person with a bill of lading, shipping paper, or similar document indicating that the diesel fuel is dyed and marked in accordance with internal revenue service requirements.(b) The terminal operator is jointly and severally liable for the taxes and fees imposed under §§ 67-3-202 - 67-3-204 that are not allocable to any licensed supplier, and shall remit the taxes and fees due with the annual report required under § 67-3-702(d); provided, that no taxes and fees shall be due if the terminal operator can establish by evidence acceptable to the commissioner that the gallons lost were diesel fuel dyed prior to receipt by that terminal operator. No collection allowance or deductions shall be allowed with respect to payment of these taxes. In the event the gallons lost or unaccounted for exceed five percent (5%) of the gallons removed from that terminal across the rack, a penalty of one hundred percent (100%) of the taxes and fees otherwise due shall be paid by the terminal operator with the taxes and fees due. Acts 1997, ch. 316, § 1; T.C.A., § 67-3-1605.