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Gas Tax

Statutory Reference

Electronic Services

Definition

The Gas Tax is imposed on persons in the business of distributing, supplying, furnishing, or selling natural gas for use or consumption (not for resale). Propane gas is taxed under this act providing it is delivered by pipeline to the consumer.

Tax Rate

Use the “Tax Rate Database” to determine the rate.

Allowable Deductions

The following sales of natural gas are exempt from tax:

Local Taxes

Municipalities may impose a tax on persons engaged in the business of distributing, supplying, furnishing, or selling natural gas for use or consumption (and not for resale) within the corporate limits of the municipality. The rate cannot exceed 5 percent of gross receipts (8 percent in cities with populations greater than 500,000). The Department of Revenue does not collect these locally imposed taxes. For more information about these taxes, contact the unit of local government that imposes them.

Form/Filing & Payment Requirements

Return - Form RG-1, Gas Tax Return, is filed monthly, quarterly, or annually, based on the taxpayer’s average monthly liability. The department determines how often a return must be filed.

Quarter-monthly payments
Companies that have an average monthly liability of $10,000 or more must send quarter-monthly payments. Payments are due on the 7th, 15th, 22nd, and the last day of the month. Taxpayers who mail their quarter-monthly remittances to the department must complete Form RPU-50, Public Utilities Quarter-Monthly Payment - Gas Tax. Do not send Form RPU-50 if you remit your payment by Electronic Funds Transfer (EFT).

A taxpayer with an annual liability of $20,000 or more in the preceding calendar year must remit any tax payment by EFT.

Questions?