It has been a really long time since I've actually looked at one on a Supra. I did some research after posting and it seems like it potentially is not a tapered thread (M16x1.5 may be right). I also did see some aftermarket parts options (like Standard's TS73T sender) that do have an o-ring on them, however these are used in many applications across multiple manufacturers. I don't know why they put that o-ring on there, but it is not needed or used on Toyotas from the factory. Most of the other non-tapered sensors have washers on them, this one does not. The stepped section is potentially bottoming out on the housing?
I should do some measuring/checking further, but I might not. Depends how curious I get about it.
EDIT: This is what a new sensor looks like:
This is some info from an aftermarket supplier (I've found similar info from other sources):
Jeff