How Propane Permits Work in Michigan
Michigan's LARA licenses LP gas dealers. EGLE (Environment, Great Lakes and Energy) has oversight over underground LP gas tanks regarding groundwater protection. The 50-foot setback from private wells applies statewide for underground tanks. Deep frost lines in the Upper Peninsula (42–48 inches) require deeper underground tank installation.
Before purchasing or leasing a propane tank in Michigan: call your County/Township building department or fire marshal's office and ask whether a permit is required for your specific tank size and installation type. Rules vary within Michigan and are subject to change. This one phone call protects you.
State Agency Role: MI Dept. of Licensing and Regulatory Affairs (LARA)
LARA licensing; EGLE oversight for underground tanks. Even where no local building permit is required for an above-ground residential tank, the installation must be performed by an LP gas dealer or contractor licensed by this state agency. Verify your installer's license through the state agency's online lookup before signing a contract.
Permit Requirements by Installation Type
| Installation Type | Permit Required? | Who Issues | Typical Fee |
|---|---|---|---|
| Above-ground, under 125 gal | Verify locally | County/Township building dept. or fire marshal | Often $0 or minimal |
| Above-ground, 125–500 gal | Commonly required | County/Township building dept. or fire marshal | $50–$130 |
| Above-ground, 500+ gal | Required | County/Township building dept. or fire marshal | $50–$130 |
| Underground, any size | Always required | County/Township building dept. or fire marshal | Typically higher; verify |
| Gas piping (all sizes) | Almost always required | County/Township building dept. | $25–$75 additional |
How to Find Your County/Township's Specific Rules
- Step 1: Determine whether your property is inside a city/municipality (governed by city rules) or unincorporated County/Township area (governed by County/Township rules).
- Step 2: Search "[your County/Township name] building department" to find the correct office and contact information.
- Step 3: Call and ask: "Do I need a permit to install a [size]-gallon [above-ground / underground] residential propane tank at [your address]?"
- Step 4: Ask about the gas piping permit separately — it is often required even when the tank permit is not.
- Step 5: Verify your installer's LP gas license with MI Dept. of Licensing and Regulatory Affairs (LARA).
NFPA 58 Setback Requirements Apply Statewide
Whether or not a permit is required in your County/Township, NFPA 58 setback requirements represent the minimum safe distances for LP gas tank placement. Use our Setback Calculator for your tank size, then verify whether your local AHJ has adopted any additional requirements beyond the national minimums.
Michigan does not have a single statewide residential LP tank installation permit requirement applying uniformly to all properties. Permit authority rests with local County/Township governments and municipalities. The state agency (MI Dept. of Licensing and Regulatory Affairs (LARA)) handles LP gas dealer and contractor licensing, not individual installation permits. Your specific requirements depend entirely on your County/Township and whether your property is inside or outside city limits.
LP gas tank installations in Michigan must be performed by an LP gas dealer or contractor licensed by MI Dept. of Licensing and Regulatory Affairs (LARA). Homeowner self-installation is not permitted for tanks connected to a home's gas supply in most circumstances. Always ask for the installer's license number and verify it with the state agency before work begins.
It depends on whether your rural County/Township has adopted a residential building code. Some rural Michigan County/Townships have no residential building code, meaning no local permit is required for above-ground tanks. Others have adopted codes requiring permits. Underground tanks always require a permit regardless of location. Call your County/Township to confirm which situation applies to your property.