Natural Gas and Propane Fuel Tax

Any individual using or selling compressed natural gas (CNG), liquefied natural gas (LNG), or liquefied petroleum gas (propane) as a motor fuel must report fuel use and remit taxes due to the Kansas Department of Revenue on a monthly basis. The minimum tax imposed on CNG is $0.24 per gasoline gallon equivalent (GGE), LNG is $0.26 per GGE, and propane is $0.23 per gallon, compared to the conventional motor fuel tax rate of $0.24 per gallon.

Alternatively, CNG, LNG, and propane vehicle users may apply for special permit decals to pay motor fuel taxes on a mileage basis. The number of gallons used on Kansas highways is determined based on the following miles per gallon (mpg) estimates:

Gross Vehicle Weight RatingMPG
6,000 pounds (lbs.) or less12 mpg
6,001 to12,000 lbs.10 mpg
12,001 to 24,000 lbs.7 mpg
24,001 to 42,000 lbs.6 mpg
42,001 to 66,000 lbs.4 mpg
Over 66,000 lbs.3 mpg

(Reference House Bill 2057, 2014, and Kansas Statutes 779-34,141; 79-3490; and 79-3491a through 79-3492e)

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