The bill makes the following changes related to how the special fuel excise tax on liquefied petroleum gas (LPG) is imposed, collected, and administered in this state:

• Adds a private commercial fleet operator that uses LPG to the definition of "distributor"; ( Section 2 )
• Changes the definition of "gallons" for LPG from a gross gallon to a net gallon, which accounts for temperature differences that affect LPG measurements; ( Section 2 )
• Limits the imposition of the tax so that in most instances it is only levied when LPG is placed in a motor vehicle's fuel tank, which is currently defined as a "use", instead of when the fuel is acquired, sold, offered for sale, or used for any purpose whatsoever; ( Section 3 )
• Requires a distributor that uses LPG from a cargo tank to propel a cargo tank motor vehicle to pay the tax on the gallons of LPG used to propel the motor vehicle, based on the vehicle's miles traveled; ( Section 3 )
• Requires a distributor that places the LPG in a fuel tank to pay the tax or, if none, for a nondistributor user to pay it; ( Section 3 )
• Eliminates the 2% allowance for LPG lost in transit or in handling; ( Section 3 )
• Prohibits the department of revenue from collecting any penalties or interest related to the LPG excise tax that is due from January 1, 2014, until January 1, 2016; ( Section 5 )
• Eliminates the minimum $25,000 bond amount for LPG distributors; ( Section 6 )
• Requires the department of revenue to update its fuel tracking system to accommodate the LPG excise tax changes; and ( Section 8 )
• Eliminates the requirement that a LPG distributor preprint the serially numbered invoices for each sale or transfer of LPG. ( Section 9 )