Alternative Fuel Tax

The excise tax imposed on compressed natural gas (CNG), liquefied natural gas (LNG), and propane used to operate a vehicle can be paid through an annual flat rate sticker tax based on the following vehicle weights:

Unladen Weight Fee
All passenger cars and other vehicles 4,000 pounds (lbs.) or less $36
More than 4,000 lbs. but less than 8,001 lbs. $72
More than 8,000 lbs. but less than 12,001 lbs. $120
12,001 lbs. or more $168

Alternatively, owners and operators may pay an excise tax on CNG of $0.0887 per gasoline gallon equivalent (GGE) measured at standard pressure and temperature, $0.1017 for each diesel gallon equivalent (DGE) of LNG, and $0.06 per gallon of propane. One GGE is equal to 126.67 cubic feet or 5.66 lbs. of CNG and one DGE is equal to 6.06 lbs. of LNG. The excise tax on ethanol and methanol fuel blends containing up to 15% gasoline or diesel fuel is one-half the tax on gasoline and diesel prescribed by California Revenue and Taxation Code section 8651.

(Reference California Revenue and Taxation Code 8651-8651.8 and California Business and Professions Code 13404 and 13470)

Jurisdiction: California

Type: Laws and Regulations

Amended: Sep 29, 2013

Technologies: Ethanol, Natural Gas, Propane (LPG)

See all California Laws and Incentives.