In lieu of related taxes, the owner of a motor vehicle which operates with alternative fuel must annually purchase a special fuel decal prior to January 31 and pay the annual decal fee. The annual decal fee is based on how the vehicle is licensed.
All passenger vehicles, commercial motor vehicles, and buses must display a special fuel decal if they are powered by:
- LP - Propane;
- Electricity; or
- Natural Gas (if applicable).
Additionally, a Plug-In Hybrid Electric Vehicle, which is a hybrid vehicle made by a manufacturer with an internal combustion engine and batteries that can be recharged by connecting to an electric power source, must display a special fuel decal when the vehicle model year is 2018 or newer.
Natural Gas sold at retail locations are charged motor fuel tax at the pump. Only Natural Gas vehicle owners and operators that have installed a Natural Gas fueling station as of December 31, 2015, used solely to fuel the vehicles they own or operate, may continue to apply for and use the special fuel decal. If the owner or operator meets the criteria to continue to use special fuel decals, the decal will only be valid at their own fueling station and they will be required to pay the motor fuel tax at all other locations.
The following vehicles are exempt from special fuel decals:
- Hybrid vehicles powered by gasoline and electricity that are not identified as a Plug-in Hybrid Electric Vehicle; and
- Motor vehicles with historic registration.