Tenn. Comp. R. & Regs. 0400-18-01-.10

Current through June 26, 2024

Section 0400-18-01-.10 - FEE COLLECTION

(1) Purpose.

The purpose of this rule is to establish a system and schedule for collection of underground storage tank fees.

(2) Applicability.

Requirements of this rule apply to the following persons:

(a) Owners and operators of petroleum underground storage tanks or tank compartments required to be reported under the requirements of T.C.A. Title 68, Chapter 215, Part 1, as follows:

1. All petroleum underground storage tanks and tank compartments that are actively storing petroleum;

2. All petroleum underground storage tanks and tank compartments that are reported as in service at the start of the annual billing cycle (July 1 for underground storage tanks and tank compartments in East Tennessee, October 1 for underground storage tanks and tank compartments in Middle Tennessee, and January 1 for underground storage tanks and tank compartments in West Tennessee); and

3. All petroleum underground storage tanks and tank compartments taken temporarily out of service after June 30, 1988, and not properly closed in accordance with paragraphs (3) through (5) of Rule 0400-18-01-.07.

(b) Any person electing to pay annual fees on behalf of a tank owner or operator, including, but not limited to the petroleum site owner.

(3) Annual petroleum underground storage tank fees.

(a) The required fee shall be submitted in the specified amount, with checks made payable to the Tennessee State Treasurer.

(b) Any person who is an owner or operator of a petroleum underground storage tank subject to annual fees shall pay the required annual fee unless the fee is paid by another person on behalf of the tank owner or operator.

(c) The amount of the annual petroleum underground storage tanks fee shall be either:

Years Assessed	Fee	Assessment
July 1, 1988 to June 30, 1990	$100.00	Per Tank
July 1, 1990 to June 30, 2005	$125.00	Per Tank
July 1, 2005 to June 30, 2013	$250.00	Per Tank Compartment
July 1, 2013 to June 30, 2021	$125.00	Per Tank Compartment
July 1, 2021 to June 30, 2026	Suspended	Suspended
July 1, 2026 forward	$125.00	Per Tank Compartment

(d) The amount of the annual administrative service fee for agencies and functions of the U.S. Government shall be:

Years Assessed	Fee	Assessment
July 1, 1988 to June 30, 1990	$25.00	Per Tank
July 1, 1990 to June 30, 2005	$25.00	Per Tank
July 1, 2005 to June 30, 2013	$250.00	Per Tank Compartment
July 1, 2013 to June 30, 2021	$125.00	Per Tank Compartment
July 1, 2021 to June 30, 2026	Suspended	Suspended
July 1, 2026 forward	$125.00	Per Tank Compartment

Agencies and functions of the U.S. Government are not eligible for benefit or financial assistance from the Tennessee Petroleum Underground Storage Tank Fund.

(e) If an annual fee is paid on an existing underground storage tank that is subsequently permanently closed in accordance with Rule 0400-18-01-.07 and replaced by a new underground storage tank installed at the same site in accordance with paragraph (1) or (6) of Rule 0400-18-01-.02 no additional annual fee will be required, provided that the replacement tank has the same number of tank compartments as the existing tank. If the replacement tank has more tank compartments than the existing tank, an additional annual fee of:

1. $250 per compartment shall be paid if the tank was replaced before July 1, 2013; or

2. $125 per compartment shall be paid if the tank was replaced on or after July 1 , 2013, unless storage tank fees are suspended pursuant to subparagraph (b) of this paragraph on the date that the tank was replaced, in which case this fee shall be suspended as well.

If the replacement tank has fewer tank compartments than the existing tank, no refund of the annual fee or any portion thereof is due, as stated in subparagraph (f) of this paragraph.

(f) Payment of the entire amount of the annual fee is required for underground storage tanks and tank compartments in service or temporarily out of service during any portion of the current billing year. Except as provided in T.C.A. § 68-215-109(g), tanks and tank compartments placed into service after the current billing year begins or tanks and tank compartments which are permanently closed before the current billing year ends are not due a refund of the annual fee or any portion thereof.

(4) Failure to pay the annual petroleum underground storage tank fee.

(a) Any petroleum underground storage tank owner or operator for which the lawfully levied petroleum underground storage tank fee is owed will be assessed a monthly late payment penalty of 5% of the amount owed. Such penalty shall be assessed monthly until the fee and all associated penalties are paid; however, the total of the late payment penalties shall not exceed three times the amount of the original fee. The tank owner or operator may file with the Commissioner a written petition requesting a reduction in the penalties assessed under this subparagraph, setting forth in the petition the grounds and reasons for such a request. At the Commissioner's sole discretion, the Commissioner may reduce the penalties that otherwise accrue if, in the Commissioner's opinion, the failure to pay fees was due to inadvertent error or excusable neglect. However, in no event shall the penalties be reduced to an amount less than 10% per annum, plus statutory interest.

(b) To refuse or fail to pay the annual fee per tank or tank compartment to the Division is an unlawful action as described in T.C.A. § 68-215-104(3). The Division may take one or more of the following actions to prohibit delivery to any facility at which there is a petroleum underground storage tank for which annual fees or penalties have not been paid:

1. Affix a tag or notice to the dispensers;

2. Affix a tag to the fill ports; or

3. Give notice on the Department's web site.

(c) If a lawfully levied fee has not been paid within a reasonable time allowed by the Commissioner, the Commissioner may proceed in the Chancery Court of Davidson County to obtain judgment and seek execution of such judgment against the tank owner or operator.

(5) Petroleum underground storage tank annual fee notices.

(a) Prior to the due date of the annual underground storage tanks fee, the Division shall issue fee notices to the owner or operator of the petroleum underground storage tanks. Fee notices and due dates shall be staggered using the three grand divisions of the state of Tennessee.

1. Tank fees for underground storage tanks and tank compartments in the following East Tennessee counties shall be due on July 31 of each year:

Johnson, Sullivan, Carter, Washington, Unicoi, Hancock, Hawkins, Greene, Claiborne, Grainger, Hamblen, Cocke, Scott, Campbell, Union, Anderson, Knox, Jefferson, Sevier, Morgan, Roane, Loudon, Blount, Bledsoe, Rhea, Meigs, McMinn, Monroe, Grundy, Sequatchie, Hamilton, Bradley, Polk, Franklin, and Marion.

2. Tank fees for underground storage tanks and tank compartments in the following Middle Tennessee counties shall be due October 31 of each year:

Stewart, Montgomery, Robertson, Sumner, Macon, Clay, Pickett, Houston, Hickman, Cheatham, Davidson, Wilson, Trousdale, Smith, Jackson, Overton, Fentress, Putnam, Cumberland, White, DeKalb, Van Buren, Warren, Cannon, Rutherford, Williamson, Dickson, Humphreys, Perry, Wayne, Lewis, Lawrence, Maury, Giles, Marshall, Lincoln, Moore, Bedford, and Coffee.

3. Tank fees for underground storage tanks and tank compartments in the following West Tennessee counties shall be due January 31 of each year:

Lake, Obion, Weakley, Henry, Dyer, Crockett, Gibson, Carroll, Benton, Lauderdale, Tipton, Shelby, Haywood, Fayette, Madison, Hardeman, Henderson, Chester, McNairy, Decatur, and Hardin.

(b) The annual fee shall be paid on or before the due date.

(c) For any underground storage tank system brought into use after the effective date of this rule, the current year's annual fee shall be submitted with the notice of existence of such tank system required in part (1)(a)2. of Rule 0400-18-01-.02.

(d) For any underground storage tank system not previously reported to the Division, the current year's annual fee shall be submitted with the required notice of existence of such tank system.

(6) Unlawful Action.

(a) It shall be unlawful to put petroleum into underground storage tanks or tank compartments at a facility if the Division has taken one or more of the following actions:

1. A tag or notice has been affixed to the dispensers;

2. A tag has been affixed to the fill ports; or

3. Notice has been given on the department's web site.

(b) Placing petroleum into a tank or tank compartment at a facility when the Division has taken one or more of the actions listed in parts (a)1. through 3. of this paragraph is a violation for the person putting petroleum into the underground storage tank or tank compartment as well as for the person having product put into the underground storage tank or tank compartment.

Tenn. Comp. R. & Regs. 0400-18-01-.10

Original rule filed December 8, 2011; effective March 7, 2012. Rule was renumbered from 1200-01-15. Amendment filed October 23, 2012; effective January 21, 2013. Amendments filed July 3, 2018; effective October 13, 2018. Amendments filed March 17, 2021; effective 6/15/2021.

Authority: T.C.A. §§ 4-5-201, et seq., and 68-215-101, et seq.