Alternative Fuel Tax

Compressed natural gas (CNG) and liquefied gas used for operating motor vehicles on public highways are subject to excise tax imposed on a per gallon basis as follows:

July 1, 2018-June 30, 2019July 1, 2019 & Beyond
CNG$0.18$0.21
Liquefied Gas$0.19$0.22

For the purposes of this tax, the Tennessee Department of Revenue uses a CNG gallon equivalent factor of 5.66 pounds (lbs.) and a liquefied gas gallon equivalent factor of 6.06 lbs. Liquefied gas is all combustible gas that exists in the gaseous state at 60 degrees Fahrenheit and at a pressure of 14.7 lbs. per square inch, but does not include gasoline, diesel fuel, or CNG. Government agencies are exempt from this tax. (Reference Tennessee Code 67-3-1101 to 67-3-1103 and 67-3-1113)