SB 519 Summary

• Defines liquefied natural gas (LNG) as a fuel cooled to approximately negative 260 degrees Fahrenheit and subject to motor fuel taxation in Oklahoma

• Imposes a tax of five cents ($0.05) per diesel gallon equivalent (dge) on liquefied natural gas, increasing to the full diesel fuel rate (13 cents per dge or 6.06 pounds of LNG) upon expiration of a specific tax credit

• Requires fuel vendors selling compressed natural gas or liquefied natural gas to obtain a fuel vendor license from the Oklahoma Tax Commission

• Excludes liquefied natural gas from the definition of "special fuel" in the special fuel tax code (Section 701), removing it from the tax decal requirement system

• Becomes effective January 1, 2014, with the tax commission presuming all LNG sales are delivered to vehicles with valid decals until that date