Compressed Natural Gas (CNG) Tax

CNG is taxed at a rate of $0.10 per gallon when used as a motor fuel. CNG is defined as natural gas that has been compressed for use as a motor vehicle fuel and that, for the purposes of taxation as a motor vehicle fuel, is converted to liquid gasoline gallon equivalent at the rate of 126.67 cubic feet of its natural service delivery line pressure to equal one volumetric gross gallon of gasoline. (Reference South Dakota Statutes 10-47B-3 and 10-47B-4)