§ 105-187.41. Tax imposed on piped natural gas. - North Carolina Statutes

§ 105‑187.41.  Taximposed on piped natural gas.

(a)        Scope. – An excisetax is imposed on piped natural gas received for consumption in this State.This tax is imposed in lieu of a sales and use tax and a percentage grossreceipts tax on piped natural gas.

(b)        Rate. – The taxrate is set in the table below. The tax rate is based on monthly therm volumesof piped natural gas received by the end‑user of the gas. If an end‑userreceives piped natural gas that is metered through two or more separatemeasuring devices, the tax is calculated separately on the volume meteredthrough each device rather than on the total volume metered through allmeasuring devices, unless the devices are located on the same premises and arepart of the same billing account. In that circumstance, the tax is calculatedon the total volume metered through the two or more separate measuring devices.

MonthlyVolume of                                                                         RatePer Therm

ThermsReceived

First200                                                                                            $.047

201 to15,000                                                                                      .035

15,001to 60,000                                                                                 .024

60,001to 500,000                                                                               .015

Over500,000                                                                                      .003

(c)        (Effective untilJuly 1, 2010 – see notes) Gas City Exemption. –  The tax imposed by thissection does not apply to piped natural gas received by a gas city forconsumption by that city or to piped natural gas delivered by a gas city to asales or transportation customer of the gas city.

(c)        (Effective July1, 2010 – see notes) Exemptions. – The tax imposed by this section does notapply to any of the following:

(1)        Piped natural gasreceived by a gas city for consumption by that city.

(2)        Piped natural gasdelivered by a gas city to a sales or transportation customer of the gas city.

(3)        Piped natural gasreceived by a manufacturer for use in connection with the operation of themanufacturing facility. To be eligible for the exemption, a person must have amanufacturer's certificate issued under G.S. 105‑164.28A. A person whouses piped natural gas for an unauthorized purpose is liable for any tax due onthe gas.

(4)        Piped natural gasreceived by a farmer to be used for any farming purpose other than preparingfood, heating dwellings, and other household purposes. To be eligible for theexemption, a person must have a farmer's certificate issued under G.S. 105‑164.28A.A person who uses piped natural gas for an unauthorized purpose is liable forany tax due on the gas.

(d)        (Effective untilJuly 1, 2008 – see notes) Reduced Rate. –  Piped natural gas received by amanufacturer for use in connection with the operation of a manufacturingfacility or by a farmer to be used for any farming purpose other than preparingfood, heating dwellings, and other household purposes is taxable at a reducedrate as provided in this subsection. To be eligible for the reduced tax rate, aperson must have a manufacturer's certificate or a farmer's certificate issuedunder G.S. 105‑164.28A. A person who uses piped natural gas for anunauthorized purpose is liable for any tax due on the gas.

MonthlyVolume of                                                                         RatePer Therm

ThermsReceived

First200                                                                                            $.032

201 to15,000                                                                                      .024

15,001to 60,000                                                                                 .016

60,001to 500,000                                                                               .010

Over 500,000                                                                                      .002

(d)        (Effective July1, 2008 until July 1, 2009 – see notes) Reduced Rate. – Piped natural gasreceived by a manufacturer for use in connection with the operation of amanufacturing facility and by a farmer to be used for any farming purpose otherthan preparing food, heating dwellings, and other household purposes is taxableas provided in this subsection. To be eligible for the reduced tax rate, aperson must have a manufacturer's certificate or a farmer's certificate issuedunder G.S. 105‑164.28A. A person who uses piped natural gas for anunauthorized purpose is liable for any tax due on the gas.

MonthlyVolume of                                                                         RatePer Therm

ThermsReceived

First200                                                                                            $.025

201 to15,000                                                                                      .019

15,001to 60,000                                                                                 .013

60,001to 500,000                                                                               .008

Over500,000                                                                                      .002

(d)        (Effective July1, 2009 until July 1, 2010 – see notes) Reduced Rate. – Piped natural gasreceived by a manufacturer for use in connection with the operation of amanufacturing facility and by a farmer to be used for any farming purpose otherthan preparing food, heating dwellings, and other household purposes is taxableas provided in this subsection. To be eligible for the reduced tax rate, aperson must have a manufacturer's certificate or a farmer's certificate issuedunder G.S. 105‑164.28A. A person who uses piped natural gas for anunauthorized purpose is liable for any tax due on the gas.

MonthlyVolume of                                                                         RatePer Therm

ThermsReceived

First200                                                                                            $.014

201 to15,000                                                                                      .010

15,001to 60,000                                                                                 .007

60,001to 500,000                                                                               .004

Over500,000                                                                                      .001

(1998‑22,s. 1; 2007‑397, ss. 11(a)‑(e).)