Ohio – Changes in the Way the Tax on Liquid Natural Gas is Calculated

SALT Report 2685 – Ohio recently enacted legislation that amends the motor fuels tax laws to clarify how tax is to be calculated on sales of liquefied natural gas (LNG). Under current law, the tax on liquid natural gas is measured in gallons.  However, House Bill 59 requires that the motor fuel excise tax on liquid natural gas be measured in pounds and that a gallon-equivalent standard for pounds of liquid natural gas be created to calculate the tax.

Therefore, the Bill states that the new gallon-equivalent standard will be equal to either:

  • The diesel gallon equivalent standard for liquid natural gas adopted by the National Conference on Weights and Measures, or
  • If no standard is adopted then the measurement will be 6.06 pounds per gallon of liquid natural gas

Theses provisions are effective January 1, 2014.

For Further Information

Ohio State Legislature – House Bill 59, Laws 2013