Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG)
Beginning 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
Effective Sept. 1, 2015 – Legislative Changes
Texas municipalities are exempt from the motor fuels tax on compressed natural gas and liquefied natural gas. In addition, if the motor fuels tax is paid, the Texas municipality can file a refund claim with the Comptroller’s office.
The legislation creating the new exemption is House Bill 1905, 84th Legislative Session (2015). The bill amends Texas Tax Code Sections 162.356 and 162.365.
Metropolitan Rapid Transit Authorities and Regional Transportation Authorities
Metropolitan Rapid Transit Authorities and Regional Transportation Authorities are exempt from the state motor fuels tax on compressed natural gas or liquefied natural gas delivered into the fuel supply tank of a motor vehicle, if the entity had a prepaid liquefied gas tax decal on Jan. 1, 2015, and the motor vehicle is:
- operated by a transit company providing services, including a metropolitan rapid transit authority created under Transportation Code Chapter 451; or
- operated by a regional transportation authority created under Transportation Code Chapter 452.
The legislation creating the new exemption is House Bill 1905, 84th Legislative Session (2015). The bill amends Texas Tax Code Sections 162.356.
Rate Details and Other Information
Fifteen cents ($.15) per gallon.
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)
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.
Not at this time.