Authority.  T.C.A. §§ 60-1-301 through 60-1-302.

Description.  The state levies a tax of 3 percent of the sales price of all gas and oil removed from the ground in Tennessee.  T.C.A. § 60-1-301.

Distribution.  The Tennessee Department of Revenue collects the tax and distribution is made as follows:

1. One third (1/3) to the county where the wellhead is located.
2. Two thirds (2/3) to the state general fund.  T.C.A. § 60-1-301.