Search Federal and State Laws and Incentives

A special excise tax rate of 2% is imposed on the sale of propane and an excise tax of $0.23 per gallon is imposed on all special fuels sales and deliveries, including compressed natural gas (CNG) and liquefied natural gas (LNG). One gallon of special fuel is equal to 120 cubic feet of CNG or 1.7 gallons of LNG. Retailers must obtain a license from the Office of the State Tax Commissioner to sell special fuels. Exceptions apply. (Reference North Dakota Century Code 57-43.2-02 through 57-43.2-05)

Alternative fuel retailers must label retail dispensing units with the price, name, and main components of the alternative fuel or alternative fuel blend being sold. The labeling must follow established labeling specifications for petroleum-based fuels. An alternative fuel producer may provide the retailer with a label promoting the benefits of the alternative fuel if the label meets the specified requirements. Alternative fuel is defined as a fuel used in an engine or vehicle other than a petroleum-based fuel, including biodiesel and green diesel. Alcohol fuel blends containing at least 1% of alcohol by volume must also be clearly labeled at the dispenser and on any price advertisements. (Reference North Dakota Century Code 19-10-03.1 and 19-10-03.3)