U.S. Department of Energy | Office of Energy Efficiency and Renewable Energy U.S. Department of Energy Office of Energy Efficiency and Renewable Energy

Natural Gas Tax

Compressed natural gas (CNG) and liquefied natural gas (LNG) used as motor fuel must be sold in gasoline gallon equivalents (GGE) or diesel gallon equivalents (DGE). A GGE of CNG is equal to 5.66 pounds (lbs.) and a DGE of LNG is equal to 6.06 lbs.

Operators of motor vehicles capable of using natural gas must pay an annual flat rate privilege tax if the vehicle has a gross vehicle weight rating (GVWR) of 10,000 lbs. or less. Natural gas vehicles (NGVs) with a GVWR greater than 10,000 lbs. are subject to privilege taxes charged per hundred cubic feet of CNG and per diesel gallon equivalent of LNG; operators must prepay a portion of this tax annually. The Mississippi Department of Revenue may require the operator of five or more NGVs to pay the tax on all fuel purchased for any purpose; in this case, the fuel distributor will collect the excise tax at the time of sale or delivery. Distributors of natural gas for use in motor vehicles must also pay a privilege tax. Taxes on distributors and utilities do not apply to sales or deliveries made to persons who hold permitted compressed gas user’s decals.

(Reference Mississippi Code 27-59-11 and 75-27-114)

Jurisdiction: Mississippi

Type: Laws and Regulations

Amended: Mar 13, 2015

Technologies: Natural Gas

See all Mississippi Laws and Incentives.