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 and Propane Fuel Tax

Any individual using or selling compressed natural gas (CNG), liquefied natural gas (LNG), or liquefied petroleum gas (propane) as a motor fuel must report fuel use and remit taxes due to the Kansas Department of Revenue on a monthly basis. The minimum tax imposed on CNG is $0.24 per gasoline gallon equivalent (GGE), LNG is $0.26 per GGE, and propane is $0.23 per gallon. The state imposes a tax rate of $0.24 per gallon on conventional motor fuel.

Alternatively, CNG, LNG, and propane vehicle users may apply for special permit decals to pay motor fuel taxes on a mileage basis. The number of gallons used on Kansas highways is determined based on the following miles per gallon (mpg) estimates:

Gross Vehicle Weight Rating MPG
6,000 pounds (lbs.) or less 12 mpg
6,001 to12,000 lbs. 10 mpg
12,001 to 24,000 lbs. 7 mpg
24,001 to 42,000 lbs. 6 mpg
42,001 to 66,000 lbs. 4 mpg
Over 66,000 lbs. 3 mpg

(Reference Kansas Statutes 79-34,141; 79-3490; and 79-3491a through 79-3492e)

Jurisdiction: Kansas

Type: Laws and Regulations

Amended: Apr 17, 2014

Technologies: Natural Gas, Propane (LPG)

See all Kansas Laws and Incentives.