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State Regulations | Washington
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Fuel Tax
Exemption for Propane and Natural Gas Vehicles
Washington State offers a
state highway fuel tax exemption for liquefied petroleum gas (LPG)
and compressed natural gas (CNG) vehicles. Owners of CNG and
LPG powered vehicles are required to pay an annual fee, based on
gross vehicle weight, instead of motor fuel excise taxes.
These provisions are found in RCW 82.38.075. The fee is
calculated as follows:
|
Vehicle
Weight |
Base Fee |
Actual Fee |
| <10,000 lbs
|
$ 45 |
$ 93.75 + $5 handling fee |
| 10,001 – 18,000
lbs |
$ 80 |
$ 166.67 + $5 handling fee |
| 18,001 – 28,000
lbs |
$110 |
$ 229.17 + $5 handling fee |
| 28,001 – 36,000
lbs |
$150 |
$ 312.50 + $5 handling fee |
| >36,000 lbs |
$250 |
$ 520.83 + $5 handling fee |
To determine the actual annual
license fee, the appropriate dollar amount set out in the above
schedule (base fee) shall be multiplied by the motor vehicle fuel tax rate in
cents per gallon as established by RCW 82.36.025 effective on July 1st
of the preceding calendar year and the product
thereof shall be divided by 12 cents. In addition, there is a $5
handling fee in order to receive a CNG or LPG permit. Note: The
fuel tax applicable starting on July 1, 2007, is 25 cents per gallon of special fuel or 100 scf of CNG.
The annual license fee system
provides vehicle operators the opportunity to save money on state
fuel taxes through the use of CNG and LPG vehicles. For
example, the current fee for a light-duty vehicle is $98.75, including the $5 handling fee. This is equivalent to paying 25 cents per gallon fuel taxes for 395
gallons of fuel. Operators consuming more than 395 gallons of
fuel annually will pay less in fuel taxes for CNG and LPG through
the fee system than would have been paid for gasoline or diesel
under the per gallon fuel tax.
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