Natural Gas and Hydrogen

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This page gives information regarding taxes imposed on compressed natural gas (CNG), liquified natural gas (LNG), and hydrogen. For more information regarding these tax types, see Pub 66, Fuel Tax General Information.

Fuel Taxes on Natural Gas and Hydrogen

The fuel tax on these fuel types is collected by the owner or lessor of the fuel compressor or dispensing equipment.

Sales Taxes on Natural Gas and Hydrogen

Fuel subject to special fuel tax because it is used to operate a motor vehicle on public roads is exempt from sales tax. Fuel suppliers who purchase hydrogen and natural gas intended to operate a vehicle can give form TC-721F, Exemption Certificate for Special Fuels, to the fuel supplier. This certificate exempts all hydrogen and natural gas purchases from sales and municipal energy tax at the time of purchase.

Note: Buyers must have a fuel tax account, sales and use tax account, and a municipal energy sales and use tax account to report:

  • Special fuel taxes for hydrogen and natural gas used as a fuel on road
  • Sales and use tax for residential and commercial uses of hydrogen and natural gas
  • Municipal energy sales and use tax for natural gas not used as a fuel on road

Please note . . .

TC-69 Form Usually Requires Additional Schedules

When submitting a TC-69 paper form, you MUST also include the appropriate schedule(s). If you do not include the correct schedule(s), your business registration will be delayed.

Note: To save time and ensure all needed schedules are included, you can apply for a tax account online.

Please note . . .

Sales tax filing is changing

All Utah sales and use tax returns and other sales-related tax returns must be filed electronically, beginning with returns due Nov. 2, 2020. File electronically using Taxpayer Access Point at tap.utah.gov.

This includes:

  • Third quarter, July-Sept 2020 (quarterly filers)
  • September 2020 (monthly filers)
  • Jan – Dec 2020 (annual filers)
  • All related schedules

You can continue to the PDF form below, or go to TAP to register and begin filing electronically now—no need to wait until the deadline!