Bill Introduced to Adjust LNG Tax Rate
WASHINGTON, D.C. – Two U.S. representatives have introduced a bill aimed at equalizing federal fuel taxes between diesel fuel and liquefied natural gas (LNG). The bill, the LNG Excise Tax Equalization Act of 2013″ (H.R. 2202), was introduced into the U.S. House of Representatives by Rep. Mac Thornberry (R-TX) and John Larson (D-CT). Sen. Michael Bennet (D-CO) and Sen. Richard Burr (R-NC) will introduce a similar bill to the Senate when it returns from recess, reports fleetowner.com
H.R. 2202 would adjust the federal highway excise tax on LNG to make it equal to that of diesel fuel. According to NGVAmerica, both diesel and LNG are taxed at 24.3 cents per gallon. Because it takes 1.7 gals. of LNG to equal the energy content of a gallon of diesel, the result is a tax rate that is 70% higher for LNG, the organization said
The legislation changes the way LNG is taxed from a volume (gallon) to an energy content (diesel gallon equivalent) basis. Click here for the fleetowner.com article.
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