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California > Laws and Regulations

Alternative Fuel Tax

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

Unladen WeightFee
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 $0.07 per 100 cubic feet measured at standard pressure and temperature, $0.06 per gallon of LNG, and $0.06 per gallon of propane. The excise tax on ethanol and methanol fuel blends containing up to 15% gasoline or diesel fuel is half of the current tax on gasoline and diesel.

(Reference California Revenue and Taxation Code 8651-8651.8)