2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 3 - PETROLEUM PRODUCTS AND ALTERNATIVE FUELS TAX LAW (§§ 67-3-101 — 67-3-1407) › Part 12 - HIGHWAY USER FUEL TAX (§§ 67-3-1201 — 67-3-1210) › Section 67-3-1202 - Permits and licenses

(a)
Prior to operation in this state or entry into this state of any qualified motor vehicle engaged in the transportation of property in interstate commerce in or through this state, the owners or operators of such vehicle shall make application to the department for a permit or license for each such qualified motor vehicle to be operated upon the highways of this state. The application shall be upon forms furnished by the department.
(b)
The permit or license shall be issued by the commissioner when it is determined that lawful requirements have been met by the applicant.
(c)
A permit or license issued by the department for operation of a qualified motor vehicle shall be in the form as may be prescribed by the commissioner.
(d)
If any qualified motor vehicle enters this state and operates upon the highways of the state without a permit or license described in subsection (c) and identification as may be prescribed by the commissioner, the owner and operator of the vehicle shall be liable for and may be required to pay all of the freight motor vehicle registration fees, licenses and taxes assessable by law.
(e)
Notwithstanding subsection (d), a lessor who is regularly engaged in the business of leasing or renting motor vehicles without drivers for compensation to permittees or licensees or other lessees may be deemed to be the permittee or licensee, and such lessor may be issued a license if an application has been properly filed and approved by the base jurisdiction.
(f)
In the case of a carrier using independent contractors under long-term leases, that is, a lease longer than thirty (30) days, the lessor and lessee will be given the option of designating which party will report and pay fuel use tax. If the lessee carrier assumes responsibility for reporting and paying motor fuel taxes and alternative fuel taxes, the base jurisdiction shall be the base jurisdiction of the lessee, regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes by the lessor.
(g)
For motor vehicle leases of thirty (30) days or less, the fuels use/miles or kilometers permit or license holder for the motor vehicle under lease will be liable.
(h)
(1)
The department may, in its sole discretion, contract with any business entity that maintains a fleet of two hundred (200) or more motor vehicles to allow the business entity to provide any specific service, or all services, normally performed by the department relative to issuance of a permit or license authorized by this part that would have otherwise been provided by the department for each qualified motor vehicle in its fleet to be operated upon the highways of this state. The existence of such a contract shall not be interpreted to diminish, restrict, or limit the authority of the department to administer or enforce applicable provisions of any law with which a motor vehicle within the contracting business entity's fleet is not in compliance.
(2)
Contracts with business entities entered into by the department under this subsection (h) shall set forth in detail the duties and responsibilities of each party, shall require compliance with all applicable federal and state laws, shall not contain provisions that are contrary to any federal or state statute, and shall comply with the Federal Drivers' Privacy Protection Act (
18 U.S.C. § 2721
et seq.), and the Uniform Motor Vehicle Records Disclosure Act, compiled in title 55, chapter 25.
(3)
A contract entered into under the authority of this subsection (h) shall be at no cost to the department except for the cost of decals, forms and administrative costs that the department would normally incur in issuing any permit or license authorized by this part for motor vehicles within the contracting business entity's fleet were it not for the contract.
(4)
A contract entered into under the authority of this subsection (h) shall, in addition to all other requirements included in the contract, require the contracting business entity to:
(A)
Keep all records, inventories, copies and other related paperwork that the department would keep if it were issuing any permit or license authorized by this part for qualified motor vehicles within the contracting business entity's fleet;
(B)
Forward to the department, no later than the tenth day of each month, copies of all applications, permits, licenses and other related documents, completed forms, or other paperwork that the department requires and that have been issued, completed or processed by the contracting business entity during the prior month;
(C)
No later than the tenth day of each month, remit to the department all fees and other moneys related to issuance of permits and licenses authorized by this part for qualified motor vehicles within the contracting business entity's fleet that would have been required to be collected during the prior month were it not for the contract entered into under this subsection (h); and
(D)
Timely make all reports that the department requires, including all applicable reports that a county clerk would be required to make if the clerk were issuing permits or licenses authorized by this part for qualified motor vehicles within the contracting business entity's fleet.
(5)
A delinquency in forwarding to the department any remittance, report, application, document, form or paperwork required of the contracting entity by law or by contract shall result in a penalty of five percent (5%) of the delinquent remittance, or the remittance associated with the delinquent report, application, document, form or paperwork, as the case may be, for each thirty (30) days or fraction of the thirty (30) days that the delinquency continues; provided, however, that the penalty may be waived by the commissioner upon the showing of good and reasonable cause. In no case shall the penalty provided for in this subdivision (h)(5) exceed twenty five percent (25%) of the remittance base.
(6)
If the department enters into a contract with a business entity under this subsection (h) and the business entity fails to strictly comply with any requirement or provision of the contract, the contract may be rescinded in its entirety and canceled at the discretion of the commissioner; provided, however, that the effective date of the cancellation shall be thirty (30) business days after the date the department gives notice by certified mail to the business entity that the contract is being rescinded and canceled.
Acts 1997 , ch. 316, § 1; 2001, ch. 166, § 2; T.C.A., § 67-3-2302; Acts 2007 , ch. 484, § 106; 2008 , ch. 1007, § 9.