U.S. Department of Energy - Energy Efficiency and Renewable Energy
Alternative Fuels and Advanced Vehicles Data Center
South Dakota Propane Laws and Incentives
State Laws and Regulations
Liquefied Petroleum Gas (LPG) Tax
For taxation purposes, LPG used as a motor vehicle fuel must be converted to a liquid gross gallon equivalent using the conversion factor of 4.24 pounds per gallon of liquid at 60 degrees Fahrenheit. LPG is taxed at a rate of $0.20 per GGE. (Reference South Dakota Statutes 10-47B-3 and 10-47B-4)
Liquefied Petroleum Gas (LPG) License
LPG may be exempt from the fuel excise tax when sold from a licensed LPG vendor to a licensed LPG user or an LPG vehicle owner if it is delivered into a bulk storage tank that can then be used to deliver fuel into a motor vehicle. LPG purchasers must obtain a propane user license before LPG is delivered into a storage tank. (Reference South Dakota Statutes 10-47B-167)