Minnesota Legislature
Operators of large trucks seek fuel tax change for natural gas
Waste haulers and other operators of large trucks are moving toward compressed natural gas as a fuel. However, the changeover could come quicker, if the price point was more in line with diesel.
Rep. Pat Garofalo (R-Farmington) sponsors HF182 that would reduce the motor fuel tax rate for compressed natural gas. The bill would change the excise tax rate on compressed natural gas from $2.174 per thousand cubic feet to $1.974 per thousand cubic feet. Garofalo noted that the proposed change is called for in Gov. Mark Dayton’s biennial budget.
Chris DeLaForest, representing Ace Sold Waste, Inc., told the House Taxes Committee Tuesday that the market favors diesel fuel because of the price difference. “You will pay more for the natural gas. This bill removes the distortion and makes a level playing field.”
The bill was held over for possible omnibus bill inclusion. Its companion, SF983, sponsored by Sen. Ann Rest (DFL-New Hope), awaits action by the Senate Transportation and Public Safety Budget Division.
A Department of Revenue analysis of the bill shows the change would affect General Fund revenue by $110,000 in the 2016-17 biennium.
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