Effective January 1, 2015, the use fuel tax rate for compressed natural gas (CNG) sold in California will change to 8.87 cents for each 126.67 cubic feet (5.66 pounds) of CNG used. The rate for liquefied natural gas (LNG) will change to 10.17 cents for each 6.06 pounds of LNG used.
Any business making retail sales of CNG and/or LNG must collect the adjusted tax rate beginning January 1. 2015. The new use fuel tax does not apply to vehicles with a current flat rate decal attached.
Additional information, including new labeling requirements, is available on the BOE special notice.
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Avalara Author
Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.