Skip Navigation to main content U.S. Department of Energy U.S. Department of Energy Energy Efficiency and Renewable Energy
Bringing you a prosperous future where energy is clean, abundant, reliable, and affordableEERE HomeEERE Home
Alternative Fuels & Advanced Vehicles Data Center
About the AFDCFuelsVehiclesFleetsIncentives and LawsData, Analysis and TrendsInformation ResourcesHome
Alternative & Advanced Fuels

South Dakota State Flag

South Dakota Propane Laws and Incentives


State Laws and Regulations

Liquefied Petroleum Gas (LPG) Tax

LPG, when used as a motor vehicle fuel, must be converted for purposes of taxation to a liquid gross gallon equivalent using the conversion factor of 4.24 pounds per gallon of liquid at 60 degrees Fahrenheit. LPG is taxed at a rate of $0.20 per GGE. (Reference South Dakota Statutes 10-47B-3 and 10-47B-4)

Liquefied Petroleum Gas (LPG) License

LPG may be exempt from the fuel excise tax when sold from a licensed LPG vendor to a licensed LPG user or an LPG vehicle owner if it is delivered into a bulk storage tank that can then be used to deliver fuel into a motor vehicle. LPG purchasers must obtain a propane user license before LPG is delivered into a storage tank. (Reference South Dakota Statutes 10-47B-167)