Form Rev 41 0065-4 - Natural Gas Use Tax Return Apr - May

INSTRUCTIONS FOR COMPLETING THE NATURAL GAS USE TAX RETURN

Filing - This return must be filed with the Washington State

Examples:

Department of Revenue. You must file on or before the last

A public university purchases natural gas from an

day of the month following the taxable period. A penalty for

out-of-state supplier through a broker. An interstate

filing late will be applied on all taxes received and

pipeline company delivers the natural gas to the local

postmarked after the due date.

distribution company who delivers it to the university.

Payment - Payment should be made by check or money

The university pays the supplier for the natural gas,

order if it is sent through the mail. Make your check or

the pipeline company for its transportation charges,

money order payable to the Washington State Department

and the local distribution company for its

of Revenue and mail to the Washington State Department of

transportation charges. The transportation charges

Revenue, General Administration Bldg., PO Box 47464,

paid to the pipeline company are subject to the

Olympia WA 98504-7464, Attn: Brokered Natural Gas.

Natural Gas Use Tax because they are not subject to

Public Utility Tax. This is because transportation

Questions - If you have questions or need help filling out

originates outside the state and terminates within the

this return, please call the Department of Revenue at (360)

state. The transportation charges paid to the local

902-7063, weekdays, for assistance.

distribution company are subject to the Public Utility

City Code Column - From the chart on the inside page of

Tax. Since transportation originates and terminates

this return, find the city in which you received your brokered

entirely within the state, the transportation charges,

natural gas. If that address is in the county, you only need to

therefore, are not subject to the Natural Gas Use

complete the state portion of this tax on line 1. All branch

Tax. In conclusion, the value of the natural gas

locations may be combined on line 1 to report one total for

reported should include its purchase price from the

the state portion of this tax.

supplier as well as the transportation charges paid to

the pipeline company.

Enter the four-digit code for your city in the city code column.

Then enter the tax rate for that city in the tax rate column.

The same scenario as (a) except the gas is delivered

directly to the university by the pipeline company and

Volume - Enter the total volume of gas, in therms, delivered

bypasses the local distribution company’s final

for this period on line 1, and enter the volume of gas, in

delivery. The university pays the supplier for the

therms, delivered to a location inside a city on any city lines

natural gas and the pipeline for its transportation

previously identified. If your company received brokered

charges. The transportation charges are subject to

natural gas in more than one location, enter the volume for

the Natural Gas Use Tax because they are not

each city on a separate line. If brokered natural gas was

subject to Public Utility Tax. The value of the natural

received in more than one location within the same city, you

gas reported should include its purchase price from

may aggregate those locations on one line for one total. This

the supplier as well as the transportation charges

information will be cross-matched with the quarterly reports

paid to the pipeline company.

required from gas deliverers.

Total Value - Add the purchase price and transportation

1 MMBTU = 10 therms or

charges, then enter the total value on line 1 and on any of

1 therm = 100,000 BTU’s.

the city lines identified previously.

Purchase Price - Enter the purchase price of the gas

Tax Due - Multiply the total value times the tax rate and

delivered in the quarter. Enter only the price of the gas. Do

enter the result in this column.

not include the transportation charges.

Credits - A credit is allowed against this use tax for any use

Transportation Charges - If all or part of the transportation

tax paid by the consumer to another state on the gas

charges for the delivery of the brokered natural gas are

consumed or used and subject to this tax. Any use tax

separately subject to the state’s public utility tax

allowed as a credit shall be prorated to the states' and cities’

(RCW 82.16.020(1)(c)) and the cities’ public utility tax

portion of the tax based on the relative rates of the taxes.

(RCW 35.21.870), then those transportation charges are

A credit is also allowed against the use tax imposed by the

exempt and may be excluded from the measure of the use

state for any gross receipts tax imposed by another state on

tax. Enter the non-exempt amount charged for interstate

the seller of the gas with respect to the gas consumed or

transportation on the gas delivered for this period on line 1

used.

and on any of the city lines already identified above.

A credit is allowed against the use tax imposed by the cities

The tax is structured so that either the public utility tax or the

for any gross receipts tax imposed by another state or

natural gas use tax is paid. The following examples identify

political subdivision of the state on the seller of the gas with

which of the two taxes applies in given situations.

respect to the gas consumed or used.

Prior Period Adjustments - Enter any adjustments for

previous periods in this column and provide an explanation

for each one.

REV 41 0065-4 (05/20/04)

Form Rev 41 0065-4 - Natural Gas Use Tax Return Apr - May - Jun 2004 Page 4

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