Propane Tax Exemption

A licensed LPG vendor may sell LPG exempt from state fuel tax to a licensed LPG user or to a purchaser who owns an LPG-propelled motor vehicle when the fuel is delivered into a bulk storage tank that has no liquid transfer line capable of fueling a motor vehicle. The vendor must certify the tank was inspected and that no such transfer line existed at the time of inspection. Purchasers using a bulk storage tank equipped with a liquid transfer line must obtain a propane (LPG) user license before receiving LPG. For licensing and procedures, see the South Dakota Department of Revenue Motor Fuel Division website. For more information, including how to obtain a propane user license, see the South Dakota Department of Revenue Motor Fuel Excise Tax website.

(Reference South Dakota Statutes 10-47B-167)