Montana Code 15-70-711. Tax on compressed natural gas, hydrogen fuel, liquefied petroleum gas, and alternative fuels
15-70-711. Tax on compressed natural gas, hydrogen fuel, liquefied petroleum gas, and alternative fuels. (1) An alternative fuel dealer shall collect the tax on compressed natural gas from the user at the time that the compressed natural gas is placed into the supply tank of a motor vehicle.
Terms Used In Montana Code 15-70-711
- Alternative fuel: means a gas, liquid, or other fuel that, with or without adjustment or manipulation such as adjustment or manipulation of pressure or temperature, is capable of being used for the generation of power to propel a motor vehicle. See Montana Code 15-70-701
- Alternative fuel dealer: means a person that is licensed or required to be licensed under 15-70-702 that delivers alternative fuel into the fuel supply tank or tanks of a motor vehicle. See Montana Code 15-70-701
- Compressed natural gas: means a product that is used as a fuel and that contains carbon or hydrogen, or both, and is compressed to greater than 24 pounds per square inch absolute base pressure and up to 3,600 pounds per square inch absolute base pressure when sold for use in motor vehicles operated on the public roads and highways of this state. See Montana Code 15-70-701
- Department: means the department of transportation. See Montana Code 15-70-701
- Hydrogen fuel: means fuel that produces energy by combining hydrogen and oxygen atoms. See Montana Code 15-70-701
- Liquefied petroleum gas: means any petroleum product that is sold for use in motor vehicles and that is composed predominantly of any of the following hydrocarbons or mixtures of hydrocarbons:
(a)propane;
(b)propylene;
(c)butane, including normal butane or isobutane; or
(d)butylene. See Montana Code 15-70-701
- Motor vehicle: means any vehicle that is self-propelled by alternative fuel and that is driven on the public roads and highways of this state. See Montana Code 15-70-701
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
- United States: includes the District of Columbia and the territories. See Montana Code 1-1-201
(2)(a) The total tax due on compressed natural gas is computed according to the formula provided in subsection (2)(b).
(b)T = (R/V) x TV, where:
(i)T is the total tax due;
(ii)R is 7 cents;
(iii)V is 120 cubic feet of compressed natural gas at 14.73 pounds per square inch absolute base pressure; and
(iv)TV is the total volume of compressed natural gas placed into the supply tank of a motor vehicle.
(3)The alternative fuel dealer shall pay the tax to the department as provided in 15-70-714.
(4)An alternative fuel dealer shall collect the tax on liquefied petroleum gas from the user at the time that the liquefied petroleum gas is placed into the supply tank of a motor vehicle.
(5)(a) The total tax due on liquefied petroleum gas is computed according to the formula provided in subsection (5)(b).
(b)T = (C/G) x TG, where:
(i)T is the total tax due;
(ii)C is 5.18 cents;
(iii)G is 1 gallon of liquefied petroleum gas; and
(iv)TG is the total gallons of liquefied petroleum gas placed into the supply tank of a motor vehicle.
(6)The alternative fuel dealer shall pay the tax to the department as provided in 15-70-714.
(7)(a) The total tax due on hydrogen fuel is computed according to the formula provided in subsection (7)(b).
(b)T = KG x R, where:
(i)T is the total tax due;
(ii)KG is the total kilograms of hydrogen placed in the supply tank of a motor vehicle; and
(iii)R is the gasoline tax rate provided for in 15-70-403.
(8)The alternative fuel dealer shall pay the tax to the department as provided in 15-70-714.
(9)A tax is imposed on alternative fuels not listed in subsection (2), (5), or (7). The tax due on other alternative fuels is computed according to the gasoline gallon equivalency by type of alternative fuel based on the current fuel properties comparison chart published by the U.S. department of energy multiplied by the gasoline tax rate provided for in 15-70-403.
(10)The United States, the state of Montana, and any political subdivision of this state are exempt from the levy and imposition of this tax.