Notice to Licensed LPG Dealers

A recent amendment to the Motor Fuel Tax Act will change the way the Michigan Department of Treasury must regulate licensed liquefied petroleum gas (LPG) dealers who sell LPG as a fuel to power motor vehicles.

Effective January 1, 2017, LPG (also known as Propane or Autogas) will be treated for tax purposes as an “alternative fuel” and so will be subject to the new licensing and tax administration requirements that apply to other alternative fuels including compressed natural gas (CNG), liquefied natural gas (LNG) and others.

As a practical matter, this means that your current LPG Dealer license will no longer be valid beginning January 1, 2017. It also means that you will need to become licensed as an Alternative Fuel Dealer in order to continue to operate as an LPG dealer beginning January 1, 2017.

To apply for your new Alternative Fuel Dealer license, you must submit all of the following to the Department by November 21, 2016:

• A completed copy of enclosed Form 3712 (Michigan Motor Fuel Tax License Application).
• A copy of your company’s most current financial statement.
• The statutorily‐mandated, 1‐time license application fee of $500.00.

Send the forms and fee to the Michigan Department of Treasury, Special Taxes Division, P.O. Box 30474, Lansing, MI 48909-7974.

If you have any questions, please contact the Motor Fuel Tax Unit at (517) 636-4600 for further assistance. You can also review the FAQs located on the Michigan Department of Treasury’s website.