Texas Comptroller of Public Accounts

Texas Comptroller of Public Accounts, Glenn Hegar

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Liquefied Gas

Effective Sept. 1, 2015 – Legislative Change

The Texas motor fuels tax on liquefied gas (LG) or liquefied petroleum gas (LPG) (propane, butane, methane, ethane, or a mixture of those gases) is repealed effective Sept.1, 2015.

Prepaid Users will no longer need the decal to purchase liquefied gas.

All prepaid liquefied gas decals currently issued to Texas-registered motor vehicles that operate using LG or LPG are cancelled, effective Aug. 31, 2015. The Comptroller will issue automatic refunds prorated on a monthly basis.

The legislation repealing the liquefied gas or liquefied petroleum gas tax is House Bill 1905, 84th Legislative Session (2015). The bill also amends Texas Tax Code Sections 162.402 and 162.403.

Dealers are still required to collect the $0.15 per gallon tax on compressed natural gas (CNG) and liquefied natural gas (LNG) when the fuel is sold or delivered into a motor vehicle’s fuel supply tank. 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.

Rate Details and Other Information


Fifteen cents ($.15) per gallon.


Apply to the timely payment of the tax:

  • Dealers - 1 percent
    (Tax Code Sec. 162.308)
  • Interstate Truckers 1/2 percent
    (Tax Code Sec. 162.308)

Due Date

Licensed dealers and interstate truckers (except IFTA licensed) – quarterly or yearly: on the 25th of the month following the reporting period. (Tax Code Sec. 162.308)

Electronic Reporting

Not at this time.

Required Plug-ins

In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Microsoft Internet Explorer, Google Chrome and Apple Safari.