skip navigation

Search Help
Navigation Help


Main Topics
A B C D E F G H I
J K L M N O P Q R
S T U V W X Y Z #


FAQs
Forms
Publications
Tax Topics


Comments
About Tax Map

previous page Previous Page: Publication 510 - Excise Taxes - Other Fuels (Including Alternative Fuels)
next page Next Page: Publication 510 - Excise Taxes - Fuels Used on Inland Waterways
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication
taxmap/pubs/p510-010.htm#en_us_publink1000116925

Compressed Natural Gas (CNG)(p12)


rule
spacer

Compressed Natural Gas (CNG)

taxmap/pubs/p510-010.htm#en_us_publink1000116926

Taxable Events(p12)


rule
spacer

Tax is imposed on the delivery of compressed natural gas (CNG) into the fuel supply tank of the propulsion engine of a motor vehicle or motorboat. See Form 720 for the tax rate. However, there is no tax on the delivery if tax was imposed under the bulk sales rule discussed next, or the delivery is for a nontaxable use, listed in chapter 2. If the delivery is in connection with a sale, the seller is liable for the tax. If it is not in connection with a sale, the operator of the boat or vehicle is liable for the tax.
If CNG is delivered into the fuel supply tank by the seller in connection with the sale of CNG for a nontaxable use, the seller is liable for the tax unless, at the time of the sale, the seller has an exemption certificate from the buyer. The seller must have no reason to believe any information in the certificate is false.
taxmap/pubs/p510-010.htm#en_us_publink1000116927

Certificate.(p12)


rule
spacer

The certificate from the buyer certifies the CNG will be used in a nontaxable use. The certificate may be included as part of any business records normally used for a sale. A model certificate is shown in the Appendix as Model Certificate J.
A certificate expires on the earliest of the following dates.
taxmap/pubs/p510-010.htm#en_us_publink1000116928

Bulk sales.(p12)


rule
spacer

Tax is imposed on the sale of CNG that is not in connection with delivery into the fuel supply tank of the propulsion engine of a motor vehicle or motorboat if the buyer furnishes a written statement to the seller that the entire quantity of the CNG covered by the sale is for use as a fuel in a motor vehicle or motorboat and the seller has given the buyer a written acknowledgment of receipt of the statement. The seller of the CNG is liable for the tax.
taxmap/pubs/p510-010.htm#en_us_publink1000116929

Motor vehicle.(p12)


rule
spacer

For this purpose, motor vehicle has the same meaning as given under Other Fuels (Including Alternative Fuels), earlier.
taxmap/pubs/p510-010.htm#en_us_publink1000116930

Nontaxable uses.(p12)


rule
spacer

The nontaxable uses of CNG are discussed under Other Fuels (Including Alternative Fuels) in chapter 2.
previous pagePrevious Page: Publication 510 - Excise Taxes - Other Fuels (Including Alternative Fuels)
next pageNext Page: Publication 510 - Excise Taxes - Fuels Used on Inland Waterways
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication