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),
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
(3) "Special fuels" is defined by
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
(33 Ky.R. 2823; 3161; eff. 5-4-2007; 40 Ky.R. 2589; 41 Ky.R. 12; eff.