The list below contains summaries of all South Dakota incentives and laws related to Propane (LPG).
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)
For taxation purposes, liquefied petroleum gas (propane) used as a motor vehicle fuel must be converted to gasoline gallon equivalents (GGE) using the conversion factor of 4.24 pounds per gallon of liquid at 60 degrees Fahrenheit per GGE. Propane is taxed at a rate of $0.20 per GGE. (Reference South Dakota Statutes 10-47B-3 and 10-47B-4)