SB237 Alabama 2014 Session

Summary

Primary Sponsor

Bryan Taylor

Republican

Co-Sponsor

Cam Ward

Session

Regular Session 2014

Title

Taxation, remove Liquefied Petroleum Gas from the decal program, Secs. 40-17-160, 40-17-161 am'd.

Summary

SB237 removes the LNG vehicle decal requirement and aligns LNG taxes with the diesel tax using diesel gallon equivalents.

What This Bill Does

If passed, the bill eliminates the requirement for LNG vehicle owners to obtain an annual decal from the Liquefied Petroleum Gas Board. It also changes how LNG used in certain vehicles is taxed, setting the LNG tax to be the same as the diesel fuel tax, calculated based on diesel gallon equivalents and using the NCWM standard (or a default of 6.06 pounds per DG E if the standard is not yet adopted). The changes affect how LNG is identified for taxation and how the tax rate is calculated, with an effective date specified in the act.

Who It Affects

• Vehicle owners/operators who use liquefied natural gas as fuel for passenger cars, vans, trucks, recreational vehicles, bobtail trucks, and tractor/trailer units: no decal will be required; LNG taxes will be set at the same rate as diesel, based on diesel gallon equivalents.
• Liquefied Petroleum Gas Board and Alabama tax authorities: decal program administration will be phased out for LNG vehicles, and tax administration will shift to a diesel-based LNG taxation method using diesel gallon equivalents (with NCWM standard guidance or a defined default).

Key Provisions

• Remove the requirement that LNG vehicle owners obtain an annual decal from the Liquefied Petroleum Gas Board; no identification decal is required going forward.
• Impose LNG taxes for the listed vehicle classes at the same rate as diesel fuel, calculated using the energy equivalent of a gallon of diesel fuel; the LNG gallon equivalent will follow the NCWM standard, or, if not yet adopted, 6.06 pounds of LNG equal one diesel gallon equivalent.
• Section 3 specifies the act becomes effective on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation