Frequently Asked Questions

Special Fuels Tax

1. What are special fuels?

   Special fuels means any gas or liquid, other than gasoline or diesel fuels, used or suitable for use as motor fuel in an internal combustion engine or motor to propel any form of vehicle, machine, or mechanical contrivance. The term includes, but is not limited to, compressed natural gas, liquefied natural gas, and liquefied petroleum gas.

2. What is compressed natural gas, liquefied natural gas, and liquefied petroleum gas?

   "Compressed natural gas" means natural gas that has been compressed and is advertised, offered for sale, suitable for use, sold, or used as an engine motor fuel. "Liquefied natural gas" means natural gas that has been cooled to a liquid state and is advertised, offered for sale, sold, suitable for use, or used as an engine motor fuel. "Liquefied petroleum gas" means the gas derived from petroleum or natural gas which is in a gaseous state at normal atmospheric temperature and pressure and maintained in the liquid state at normal atmospheric temperature by means of suitable pressure and which is dispensed into motor fuel storage containers and is advertised, offered for sale, sold, suitable for use, or used as an engine motor fuel. The term "liquefied petroleum gas" or "LPG" refers to propane.

3. Who is liable for the excise tax on special fuels?

   The retail dealer who sells or dispenses motor fuel at a retail location to the ultimate consumer or the special fuel fleet dealer.

4. Who is a “special fuel fleet dealer”?

   A special fuel fleet dealer is a person who produces or purchases compressed natural gas, liquefied natural gas, or liquefied petroleum gas and who maintains storage facilities for those fuels and delivers all or part of the fuel produced or stored into the fuel supply tank of a motor vehicle.

5. Who is a “retail dealer”?

   A retail dealer is a person who sells motor fuel at retail or dispenses motor fuel at a retail location to the ultimate consumer.

6. How much is the excise tax on special fuels?

   The excise tax is levied at an aggregate rate of $0.20 per gallon or gallon equivalent. The excise tax rate on compressed natural gas and liquefied natural gas sold, used, or consumed in the state of Louisiana for the operation of motor vehicles licensed or required to be licensed for highway use is $0.20. The excise tax rate on liquefied petroleum gas sold, used, or consumed in the state of Louisiana for the operation of motor vehicles licensed or required to be licensed for highway use is $0.146. The tax should be included in the price of the fuel at the retail pump or calculated on the fuel removed from fleet storage and dispensed into a motor vehicle for use on the roads.

7. What is the conversion rate for a gallon of CNG, LNG, and LPG?

   The gasoline gallon equivalent for compressed natural gas shall be equal to 5.660 pounds of compressed natural gas. The diesel gallon equivalent for liquefied natural gas shall be equal to 6.060 pounds of liquefied natural gas. The gasoline gallon equivalent for liquefied petroleum gas shall be an energy equivalent rate equal to seventy-three percent of the state tax per gallon on gasoline and diesel fuel.

8. Do I need to receive a license from the Department before I sell or deliver special fuels?

   A person may not sell or deliver CNG, LNG, or LPG that is delivered into the fuel supply tank of a motor vehicle and on which tax is imposed unless the person holds a CNG, LNG, or LPG special fuel dealer’s license issued by the secretary according to LA R.S. 818:114.

9. How do I apply to get a license from the Louisiana Department of Revenue?

   You must submit a completed Form R-5413, Special Fuels Excise Tax License Application , and Form R-5304, Motor Fuels Tax Surety Bond to LDR.

10. As a special fuel fleet dealer or retail dealer, will I need to provide the Department a bond to be licensed to sell or deliver special fuels?

    A surety bond of a minimum $50,000 is required.

11. What form do I fill out to remit the tax on the special fuels, CNG, LNG, and LPG?

    Retail dealers and special fuel fleet dealers are required to complete Form R-5018, Specials Fuels Tax Return - CNG, LNG, and LPG. The return is required to be filed on a monthly basis and is due on the 20th of the following month.

12. How do I obtain a tax form to report the tax on the special fuels?

    Form R-5018, Special Fuels Tax Return – CNG, LNG, and LPG, is available at https://www.revenue.louisiana.gov/Forms/ForBusinesses and copies may be made as needed.

13. Can I file or pay the excise tax on special fuels electronically?

    No. Currently there are no electronic filing or payment options available. The paper return should be submitted by mail along with a check for the amount due.

14. Is a discount allowed?

    Licensed dealers are entitled to a discount of 0.33% for the expense of collecting, accounting for, reporting, and timely remitting the taxes collected and for keeping records.

15. Are Government entities exempt from paying tax on CNG, LNG, and LPG?

    No. Governmental entities are not exempt from the tax due on CNG, LNG, or LPG. Only those entities as stated in LA R.S. 48:1461 are exempt.

16. What are Governmental Entities?

    Governmental entities include, but are not limited to, any branch, department, office, agency, board, commission, district, governing authority, political subdivision, or any other instrumentality of the state, a parish, or a municipal government.

17. I have multiple locations; can I file one consolidated return for all locations?

    No. A separate return must be filed for each location.

18. Does a return have to be filed if no taxable deliveries were made within a reporting period?

    Yes. A licensed dealer who has not made taxable deliveries during the reporting period is required to file a return with the secretary that includes those facts or that information.

19. I own a hardware store in Louisiana that sells and fill special fuels containers on my premises. Do I need to be licensed by the Department?

    The excise tax on special fuels does not apply to fuel delivered into the supply tank of off-highway equipment, a stationary engine, a motorboat, an aircraft, equipment used solely for servicing aircraft and used exclusively off-highway, or any device other than a motor vehicle operated or intended to be operated for highway use. Any business that does sell or dispense special fuel into the fuel supply tank of a motor vehicle intended for highway use is liable for the tax and is considered a dealer. The dealer shall add the amount of the tax to the selling price of the fuel so that the tax is paid by the ultimate consumer or the purchaser of the fuel.

20. I am school bus driver …. What do I need to do?

    The owner of any school bus used to transport Louisiana students that is propelled by an internal combustion engine or motor capable of using CNG, LNG, or LPG as fuel shall pay the tax levied but will be entitled to a credit equal to 50 percent of the taxes paid. Claims for refunds must be submitted annually on or before July 31st and must list the taxes paid during the academic school year ending no later than June 30th of the year for which the credit is being filed. School bus drivers should complete Form R-5019, Claim for Refund of Special Fuels by School Bus Drivers, to request their refund.