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S.F. No. 70 - Compressed natural gas tax rate modification - First Engrossment
Author: Senator Carrie Ruud
Prepared By: Krista Boyd, Senate Fiscal Analyst (651/296-7681)
Date: March 6, 2017


This bill proposes to align the defined energy content of compressed natural gas (CNG) with the industry standard of 900 BTUs per cubic foot (current law is at 1000 BTUs per cubic foot).

It also changes the conversion factor used to calculate fuel tax on CNG from 114.9 cubic feet of CNG for every one gallon of gasoline, to 126.67 cubic feet, which is the standard under the International Fuel Tax Agreement.  This changes the effective fuel tax rate on CNG from $2.174 to $1.974 per thousand cubic feet.

This bill is effective for sales and purchases made after June 30, 2017.

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