Section 67-3-1113 - [Effective 1/1/2025] Compressed natural gas - Rate of tax(a) A use tax is imposed on compressed natural gas and hydrogen gas used for the propulsion of motor vehicles on the public highways of this state. For the purpose of determining the tax on compressed natural gas and hydrogen gas, a gallon equivalent factor of five and sixty-six one-hundredths pounds (5.66 lbs.) per gallon shall be used. The rate of the tax imposed by this section shall be: (1) On or after July 1, 2017, through June 30, 2018, sixteen cents (16¢) per gallon;(2) On or after July 1, 2018, through June 30, 2019, eighteen cents (18¢) per gallon; and(3) On or after July 1, 2019, twenty-one cents (21¢) per gallon.(b) Governmental agencies are exempt from the tax imposed by subsection (a).Amended by 2024 Tenn. Acts, ch. 859,s 3, eff. 1/1/2025.Amended by 2017 Tenn. Acts, ch. 181, s 26, eff. 7/1/2017. Acts 1997 , ch. 316, § 1; T.C.A., § 67-3-2213.This section is set out more than once due to postponed, multiple, or conflicting amendments.