DOR Taxation web site

LPG/NG Fuels

LPG/NG Decals
Effective January 1, 2014, the LPG/NG decals will no longer be available. The Colorado legislature passed HB 13-1110, which 1) eliminated the decals requirement and 2) changed the tax rates for LPG, LNG and CNG fuels. Fuel taxes for these special fuels will be paid at the time of purchase, rather than through a decal fee. 2013 decal purchases are valid through December 31, 2013.


Fuel Rates 
Effective January 1, 2014, the tax on LPG, LNG and CNG fuels will be $.03 per gallon or gallon equivalent. CNG fuel will be taxed at the gallon equivalent rate**, defined by the IRS as 126.67 cubic feet of natural gas. The tax rates per gallon will be:  

Year

CNG**

LNG

LPG

 

 

 

 

2014

$.03

$.03

$.03

2015

$.06

$.05

$.05

2016

$.09

$.07

$.07

2017

$.12

$.08

$.09

2018

$.15

$.10

$.11

2019

$.183

$.12

$.135

 

Fuel distributors need to note that the Liquefied Petroleum Gas Fee is now the Liquefied Petroleum Gas and Natural Gas fee. The fee is $10 per tank truckload and includes fuel sales of natural gas as well as LPG sales. A tank truckload is defined as 8,000 gallons of LPG or LNG and 8,000 gallon equivalents of CNG The fee will be $.00125 per gallon.

Exempt Fuel for Government Agencies 
State and local government entities and school districts can purchase exempt fuel from a distributor with a fuel exemption certificate. A Sales Tax Exemption Certificate does not exempt fuel excise tax.   You can call the Fuel Tax Unit at (303)205-8205 to find out if your entity or district has a fuel tax exemption certificate. If not, download Form DR 0241. Complete the form and mail to: 

Colorado Department of Revenue
Fuel Tax Unit, Room 200
PO Box 17087
Denver, CO 80217-0087

You will receive your certificate in 3-4 weeks. The certificate automatically renews for the next calendar year and is mailed out in November or December. There is no charge for a certificate.