A tax is imposed on the use of liquefied gas (i.e., butane, propane, compressed natural gas) as a motor fuel. Motor vehicles licensed in Texas and equipped with a liquefied gas system are required to prepay the tax by purchasing a liquefied gas tax decal. Motor vehicles licensed in other states, Mexico, or licensed under the IFTA pay the tax at the retail pump to a licensed dealer. (Sec. 162.301) (Sec. 162.305)
Effective Oct. 1, 2011 – $50 Late Filing Penalty
For reports due on or after Oct. 1, 2011, a $50 late filing penalty will be assessed on every report filed after the due date. The $50 penalty is due in addition to any other penalties assessed for the reporting period. For details about these changes, please visit Publication 98-918 – Late Filing Penalties (PDF, 69KB).
Rate Details and Other Information
Fifteen cents ($.15) per gallon.
Prepaid users: based on mileage and registered gross weight of vehicle. (Sec. 162.305)
Apply to the timely payment of the tax:
- Dealers - One percent
- Interstate Truckers 1/2 percent
Licensed dealers and interstate truckers (except IFTA licensed) - yearly: January 25 for previous year.(Sec. 162.308)
Prepaid users: 15 days prior to anniversary. (162.305)
Not at this time.