Natural Gas and Propane Tax
Before January 1, 2030, sales of natural gas fuel, including propane, compressed natural gas (CNG), and liquefied natural gas (LNG), are subject to two taxes per motor fuel equivalent gallon adjusted annually based on the consumer price index (CPI) change from a 2013 baseline: (1) the State Comprehensive Enhanced Transportation System (SCETS) tax, set annually by adjusting a 2.9¢/gallon base rate; and (2) an additional “privilege of selling natural gas fuel” tax, set annually by adjusting a 4.6¢/gal base rate and rounding to the nearest tenth of a cent.
Beginning on January 1, 2030, propane, compressed natural gas (CNG), and liquefied natural gas (LNG) used to fuel motor vehicles are subject to the following state motor fuel taxes, with an additional variable component to be determined by the Florida Department of Revenue (Department) each calendar year for the following 12-month period:
| Timeframe | Excise Tax per Gasoline Gallon Equivalent (GGE) | Ninth-Cent Fuel Tax | Local Option Fuel Tax |
|---|---|---|---|
| Starting January 1, 2030 | $0.02 | $0.05 | $0.05 |
| Starting January 1, 2031 | $0.04 | $0.01 | $0.01 |
To determine the variable tax, the Department will require each propane and natural gas retailer to file monthly electronic reports beginning February 2030. For taxation purposes, one GGE is equal to 5.66 pounds (lbs.) or 126.67 standard cubic feet of CNG; 6.06 lbs. of LNG; and 1.35 gallons of propane. Exemptions may apply.
(Reference Florida Statutes 206.9955, 206.9965, and 206.996)
Jurisdiction: Florida
Type: Laws and Regulations
Enacted: May 2, 2013
Amended: May 8, 2024
Technologies: Natural Gas, Propane (LPG)
See all Florida Laws and Incentives.