Propane Laws and Incentives in Florida
The list below contains summaries of all Florida laws and incentives related to propane.
Laws and Regulations
Authorization for Alternative Fuel Infrastructure Incentives
Local governments may use income from the infrastructure surtax to provide loans, grants, or rebates to residential or commercial property owners to install electric vehicle chargers, propane fueling stations, and natural gas fueling stations, if a local government ordinance authorizing this use is approved by referendum.
(Reference Florida Statutes 206.9951 and 212.055)
Natural Gas and Propane Retailer License
Natural gas and propane retailers must obtain a license from the Florida Department of Revenue. Effective January 1, 2030, a retailer that does not hold a valid license is subject to a penalty of 25% of the tax assessed on total purchases. Exemptions may apply.
(Reference Florida Statutes 206.9951 and 206.9952)
Natural Gas and Propane Tax
Before January 1, 2030, sales of natural gas fuel, including propane, compressed natural gas (CNG), and liquefied natural gas (LNG), are subject to two taxes per motor fuel equivalent gallon adjusted annually based on the consumer price index (CPI) change from a 2013 baseline: (1) the State Comprehensive Enhanced Transportation System (SCETS) tax, set annually by adjusting a 2.9¢/gallon base rate; and (2) an additional “privilege of selling natural gas fuel” tax, set annually by adjusting a 4.6¢/gal base rate and rounding to the nearest tenth of a cent.
Beginning on January 1, 2030, propane, compressed natural gas (CNG), and liquefied natural gas (LNG) used to fuel motor vehicles are subject to the following state motor fuel taxes, with an additional variable component to be determined by the Florida Department of Revenue (Department) each calendar year for the following 12-month period:
| Timeframe | Excise Tax per Gasoline Gallon Equivalent (GGE) | Ninth-Cent Fuel Tax | Local Option Fuel Tax |
|---|---|---|---|
| Starting January 1, 2030 | $0.02 | $0.05 | $0.05 |
| Starting January 1, 2031 | $0.04 | $0.01 | $0.01 |
To determine the variable tax, the Department will require each propane and natural gas retailer to file monthly electronic reports beginning February 2030. For taxation purposes, one GGE is equal to 5.66 pounds (lbs.) or 126.67 standard cubic feet of CNG; 6.06 lbs. of LNG; and 1.35 gallons of propane. Exemptions may apply.
(Reference Florida Statutes 206.9955, 206.9965, and 206.996)
State Fleet Alternative Fuel Vehicle Acquisition
The Florida Department of Management Services must evaluate the use of fuel-efficient and alternative fuel vehicles in the state fleet. When procuring vehicles, state agencies must consider total life cycle costs, fuel efficiency, and the availability of alternative fuel options, consistent with state purchasing requirements.
(Reference Florida Statutes 287.16)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.