Alternative Fuel Stations in South Dakota

Tax incentives and/or other rebates, credits, incentives or related initiaves for drivers of alternative fuel vehicles or for other uses of alternative fuel in South Dakota.

Propane Tax Exemption

Propane is exempt from the state fuel excise tax when sold from a licensed propane vendor to a licensed propane user or a propane vehicle owner if it is delivered into a bulk storage tank that can then be used to deliver fuel into a motor vehicle. Fuel purchasers must obtain a propane user license before propane is delivered into their storage tanks. (Reference South Dakota Statutes 10-47B-167)

Alternative Fuel Tax

Liquefied natural gas (LNG), ethyl alcohol, and methyl alcohol are taxed at a rate of $0.14 per gasoline gallon equivalent (GGE) when used as motor fuel. Compressed natural gas (CNG) and propane used as motor fuel are taxed at a rate of $0.10 per GGE and $0.20 per GGE, respectively. For taxation purposes, the fuels are converted to GGEs as follows:

• One GGE of LNG is equal to 1.5536 volumetric gallons of LNG
• One GGE of CNG is equal to 126.67 cubic feet of its natural service delivery line pressure
• One GGE of propane is equal to 4.24 pounds per gallon of liquid at 60 degrees Fahrenheit

(Reference South Dakota Statutes 10-47B-3 and 10-47B-4)