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).
Electric and plug-in hybrid electric vehicles are becoming more and more common. These types of vehicles require special fuel decals too just like LP – propane gas and Natural gas propelled vehicles.
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.
Special Fuel Decals:
- Are valid from January 1 through December 31.
- Are prorated monthly for vehicles not in operation by January 31.
- Remain with the vehicle when there is a change of ownership. The new owner must complete the transfer by completing an Application for Special Fuel Decal (Form 2300).
- Are attached to the lower right-hand corner of the windshield on the vehicle for which it was issued.
The Department of Revenue mails notices the first week of December to owners of motor vehicles which operate with alternative fuel.
Vehicles Not in Operation by January 31
The decal fee shall be reduced by one-twelfth for each month which has elapsed since the beginning of the year. The owner of any vehicle that was titled, registered, and equipped to use LP - Propane, Natural Gas (if applicable), Electricity, or is a Plug-in Hybrid Electric Vehicle as of January 15 must pay the full year’s fee.
Changing Vehicle Weight
When the licensed gross weight of a commercial motor vehicle is increased, you may be required to complete the change of weight and pay additional decal fees if the weight increase requires an increase in the decal fee.
When the LP - Propane, Natural Gas (if applicable), Electric, or Plug-in Hybrid Electric equipment is removed by the owner upon sale of the vehicle and installed on another vehicle owned or purchased by the same individual, the special fuel decal can be transferred to the newly equipped vehicle.
It is unlawful for any person to operate a motor vehicle required to have an alternative fuel decal upon the highways of this state without a valid decal.
Vehicles Not Registered in Missouri
The owners or operators of motor vehicles not registered in Missouri are required to purchase a temporary alternative fuel decal before they can purchase LP - Propane or Natural Gas. The fee for a temporary alternative fuel decal is $8 and is valid for a period of 15 days from the date of issuance. The decal must be attached to the lower right-hand corner of the front windshield on the motor vehicle for which it was issued. The decal is not transferable and the fee cannot be credited to another vehicle. Temporary alternative decals may be purchased from the retail dealer.
Temporary Alternative Decals
The Department of Revenue, Excise Tax Section, provides temporary alternative decals to dealers on a consignment basis. Dealers that wish to have decals on hand are usually provided five to ten decals at a time. At the end of December of each year, the dealer should return all unsold decals along with payment for all sold decals. The Department will then provide additional decals to the dealers for the next year. In some instances the Department has faxed a temporary decal to a dealer.