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HB13-1110 Special Fuel Tax & Electric Vehicle Fee


View the Official Bill


05/15/2013 Governor Action – Signed




The bill makes the following changes to the special fuel tax:

  • Section 3 of the bill modifies the definition of “distributor” to include persons who sell natural gas, certain fleet operators, and in limited circumstances, public utilities. It also modifies the definition of “gallon” to include gallon gasoline equivalents.
  • Section 4 lowers the tax rates for compressed natural gas, liquefied natural gas, and liquefied petroleum gas. These rates are phased-in over 6 years.
  • Section 5 repeals the annual fee that is charged in lieu of the special fuel tax and the related decal system, so that liquefied petroleum gas and natural gas are subject to the special fuel tax. Section 5 also exempts compressed natural gas that is supplied to a user at a residential home from the special fuel tax. This exemption ends on July 1, 2017.
  • Sections 6, 7, and 8 make conforming amendments related to the preceding changes.
  • Section 9 requires the department of transportation to prepare and submit a report to the transportation legislation review committee concerning related alternative fuels and the public roads and highways. The bill requires the director of the division of oil and public safety to promulgate the following rules:
  • Section 2 requires rules for natural gas setting forth standards related to inspections; specifications; shipment notification; record keeping; labeling of containers; use of meters or mechanical devices for measurement; submittal of installation plans; and minimum standards for the design, construction, location, installation, and operation of natural gas systems and equipment and handling of the natural gas; and
  • Section 9requires rules related to the accurate measurement of liquefied petroleum gas and natural gas. Section 10 requires county clerks and recorders to annually collect a $30 fee at the time of registration on every motor vehicle that is propelled by plug-in electricity. The money is credited to the highway users tax fund. Upon payment of this fee, a person will receive a decal that the department of revenue creates, and this decal must be attached to the upper right-hand corner of the front windshield on the motor vehicle for which it was issued.

Fiscal Impact

This entry was posted on Thursday, May 16th, 2013.