SB 519 Summary

• Defines "liquefied natural gas" as natural gas cooled to approximately -260°F and converted to liquid for use as vehicle fuel in Oklahoma

• Imposes a five-cent ($0.05) per diesel gallon equivalent (dge) tax on liquefied natural gas, which will increase to thirteen cents ($0.13) per dge upon expiration of a tax credit under Section 2357.22 of Title 68

• Requires liquefied natural gas wholesalers to obtain fuel vendor licenses and collect the tax on first sale to retailers or end-users, similar to compressed natural gas taxation

• Excludes liquefied natural gas from the definition of "special fuel" for purposes of vehicle decal requirements, establishing that the presumption of vehicle fuel use applies until the effective date

• Becomes effective January 1, 2014, with legislative findings stating the tax is not primarily for raising revenue but to promote development of alternative energy sources