Compilation of Rules and Regulations of the State of Georgia
Department 560 - RULES OF DEPARTMENT OF REVENUE
Chapter 560-9 - MOTOR FUEL AND ROAD TAXES
Subject 560-9-1 - MOTOR FUEL TAX
Rule 560-9-1-.07 - Calculation of Motor Fuel Tax for Compressed Natural Gas

Universal Citation: GA Rules and Regs r 560-9-1-.07

Current through Rules and Regulations filed through September 23, 2024

(1) Purpose of rule. The purpose of this rule is to provide guidance regarding calculation of the motor fuel tax applicable to compressed natural gas ("CNG") on a gallon-equivalent basis pursuant to O.C.G.A. § 48-9-3(a)(4).

(2) Definitions.

(a) "Gallon-equivalent basis" means the potential power equivalent, expressed in British thermal units, of compressed natural gas that is equivalent to one gallon of regular-grade gasoline.

(b) "British thermal unit" (BTUs) means the amount of heat required to raise the temperature of one pound of water one degree Fahrenheit.

(c) "Cubic foot" means the amount of gas occupying a cubic foot of space at a pressure of 30 inches of mercury (approximately 14.7 pounds per square inch) and a temperature of 60 degrees Fahrenheit.

(3) Calculation of tax. Motor fuel taxes imposed on compressed natural gas must be calculated on a gallon-equivalent basis.

(a) The gallon-equivalent basis of compressed natural gas equals 124,000 British thermal units.

(b) Equivalency table.

100 cubic feet of CNG=1 Therm

1 Therm=100,000 BTUs

1 gallon of regular-grade gasoline=124,000 BTUs

1 Therm=.8 gallons of regular-grade gasoline

(c) To calculate the gallon-equivalent basis of compressed natural gas, multiply the amount of Therms by .8, then multiply the result by the applicable motor fuel excise tax and prepaid state tax rates.

O.C.G.A. Secs. 48-2-12, 48-9-3.

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