Alternative Fuel Tax

Compressed natural gas (CNG) used as a vehicle fuel is taxed on a gasoline gallon equivalent (GGE) basis as follows:

  • $0.05 per GGE until December 31, 2019;
  • $0.11 per GGE from January 1, 2020, until December 31, 2024; and
  • $0.17 per GGE from January 1, 2025, and beyond.

Liquefied natural gas (LNG) used as a vehicle fuel is taxed on a diesel gallon equivalent (DGE) basis as follows:
  • $0.05 per DGE until December 31, 2019;
  • $0.11 per DGE from January 1, 2020, until December 31, 2024; and
  • $0.17 per DGE from January 1, 2025, and beyond.

Liquefied petroleum gas (propane) used as a vehicle fuel is taxed on a gasoline gallon basis as follows:
  • $0.05 per gallon until December 31, 2019;
  • $0.11 per gallon from January 1, 2020, until December 31, 2024; and
  • $0.17 per gallon from January 1, 2025, and beyond.

In the absence of a National Institute of Standards and Technology definition of GGE, a GGE will be equal to 5.66 pounds (lbs) of natural gas for CNG and a DGE will be equal to 6.06 lbs. for LNG. If natural gas is used for fueling vehicles as well as for another use, such as home heating, the tax applies to the entire amount of natural gas consumed, unless the Missouri Department of Revenue approves a separate meter and accounting system.

(Reference Missouri Revised Statutes 142.803 and 142.869)