Tennessee > Laws and Regulations
Compressed Natural Gas (CNG) Tax and Permit
A use tax of $0.13 per gallon is imposed on CNG used for operating motor vehicles on public highways. For the purpose of determining the tax on CNG, a gallon equivalent factor of 5.66 pounds per gallon is used. A CNG vehicle user must apply for and obtain a CNG user's permit from the Tennessee Department of Revenue. Government agencies are exempt from this tax. (Reference Tennessee Code 67-3-1113 and 67-3-1114)