South Dakota > State Incentives
Propane Tax Exemption
Liquified petroleum gas (propane) is exempt from the fuel excise tax when sold from a licensed propane vendor to a licensed propane user or a propane vehicle owner if it is delivered into a bulk storage tank that can then be used to deliver fuel into a motor vehicle. Purchasers must obtain a propane user license before propane is delivered into a storage tank. (Reference South Dakota Statutes 10-47B-167)