103 KAR 43:330. Measurement of compressed natural gas (CNG)

and liquefied natural gas (LNG) in gallons.

 

      RELATES TO: KRS 138.210, 138.220, 138.250

      STATUTORY AUTHORITY: KRS 131.130(1),

138.226(1)

      NECESSITY, FUNCTION AND CONFORMITY: KRS

131.130(1) authorizes the Department of Revenue to promulgate administrative

regulations for the administration of all tax laws. KRS 138.226(1) authorizes

the department to promulgate administrative regulations necessary to administer

gasoline and special fuel taxes. This administrative regulation prescribes the

method of measurement of compressed natural gas and liquefied natural gas in

gallons as a special fuel.

 

      Section 1. Definitions. (1)

"Compressed natural gas" means natural gas compressed into high

pressure fuel cylinders capable of being used to operate or propel any vehicle

on public roadways.

      (2) "Liquefied natural gas"

means natural gas that has been converted to liquid form for ease of storage or

transport.

      (3) "Special fuels" is defined by

KRS 138.210(4)(b).

 

      Section 2. “Special Fuels” shall include

compressed natural gas and liquefied natural gas.

 

      Section 3. Conversion Method. (1) For

purposes of reporting the number of gallons subject to the tax imposed by KRS

138.220 as required by KRS 138.250, every special fuels dealer shall convert

compressed natural gas or liquefied natural gas into gallons.

      (2) The conversion rate for compressed

natural gas shall be 5.66 pounds or 126.67 cubic feet of compressed natural gas

to one (1) gallon of special fuels.

      (3) The conversion rate for liquefied

natural gas shall be 6.06 pounds of liquefied natural gas to one (1) gallon of

special fuels.

(33 Ky.R. 2823; 3161; eff. 5-4-2007; 40 Ky.R. 2589; 41 Ky.R. 12; eff.

8-1-2014.)