What is the brokered natural gas use tax?
It is a tax that applies to the use of natural or manufactured gas that was purchased from an out-of-state vendor. The tax is measured by the value of the gas when delivered to the consumer. The rate must be the same as the gas distribution rate under the state public utility tax.
How do I pay the tax?
The tax is paid quarterly by consumers to the Department of Revenue on a
Natural
Gas Use Tax Return.
What rate do I pay?
The natural or manufactured gas rate is designed to be the same as the public utility tax rate. The state rate is currently .03852.
The city rates vary depending on location and are listed on the quarterly
Natural
Gas Use Tax Return.
What are the funds used for?
The state portion of the tax goes to the general fund. The city portion goes to the state treasurer to be distributed to the cities.