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Texas Taxes

Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG)

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Effective Sept. 1, 2013, a tax on Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) is imposed when the fuel is sold or delivered into a motor vehicle’s fuel supply tank by a licensed CNG/LNG dealer. A person who delivers CNG or LNG from their own storage into their own vehicles is also required to be licensed as a CNG-LNG dealer. Vehicles that operate using CNG or LNG will no longer prepay the CNG or LNG tax by purchasing a decal. (Tax Code Sec. 162.357) (Tax Code Sec. 162.352) IFTA


Rate Details and Other Information

Rates

Fifteen cents ($.15) per gallon.

Deductions

Apply to the timely payment of the tax:

  • Dealers - 1 percent
    (Tax Code Sec. 162.362)
  • Interstate Truckers 1/2 percent
    (Tax Code Sec. 162.362)

Due Date

Licensed dealers quarterly - 25th day of the month following the end of the calendar quarter; or yearly, if qualified: January 25. (Tax Code 162.362)

Interstate truckers (except IFTA licensed) - yearly: January 25 for previous year (Tax Code Sec. 162.362).

$50 Late Filing Penalty

The law imposes a $50 late filing penalty on every report filed after the due date, even if no tax was due for the period or the report was eventually filed.

Electronic Reporting

Not at this time.

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