103 KAR 43:330. Measurement of compressed natural gas (CNG) in gallons.


      RELATES TO: KRS 138.210, 138.220, 138.250

      STATUTORY AUTHORITY: KRS 131.130(1), 138.226(1), 138.250

      NECESSITY, FUNCTION AND CONFORMITY: KRS 131.130(1) authorizes the Department of Revenue to promulgate administrative regulations for the administration of all tax laws. KRS 138.226(1) authorizes the department to promulgate administrative regulations necessary to administer gasoline and special fuel taxes. This administrative regulation prescribes the method of measurement of compressed natural gas in gallons as a special fuel.


      Section 1. Definitions. (1) "Compressed natural gas" means natural gas compressed into high pressure fuel cylinders capable of being used to operate or propel any vehicle on public roadways.

      (2) "Special fuels" is defined in KRS 138.210(4)(b) and includes compressed natural gas.


      Section 2. Conversion Method. (1) For purposes of reporting the number of gallons subject to the tax imposed by KRS 138.220 as required by KRS 138.250, every special fuels dealer who manufactures compressed natural gas shall convert the quantity produced from pounds to gallons.

      (2) The conversion rate used shall be 5.66 pounds of compressed natural gas to one (1) gallon of special fuels.


      Section 3. (1) This administrative regulation shall replace Revenue Policy 72P105.

      (2) Revenue Policy 72P105 is hereby rescinded and shall be null, void, and unenforceable. (33 Ky.R. 2823; 3161; eff. 5-4-2007.)