Ohio Revised Code
Chapter 5727 | Public Utilities
Section 5727.811 | Excise Tax Levied on Natural Gas Distribution Company.

Effective: July 1, 2015
Latest Legislation: House Bill 64 - 131st General Assembly
(A) For the purpose of raising revenue to fund the needs of this state and its local governments, an excise tax is hereby levied on every natural gas distribution company for all natural gas volumes billed by, or on behalf of, the company beginning with the measurement period that includes July 1, 2001. Except as provided in divisions (C) or (D) of this section, the tax shall be levied at the following rates per MCF of natural gas distributed by the company through a meter of an end user in this state:


If no meter is used to measure the MCF of natural gas distributed by the company, the rates shall apply to the estimated MCF of natural gas distributed to an unmetered location in this state.
(B) A natural gas distribution company shall base the tax on the MCF of natural gas distributed to an end user through the meter of the end user in this state that is estimated to be consumed by the end user as reflected on the end user's customer statement from the natural gas distribution company. Until January 1, 2003, the natural gas distribution company shall pay the tax levied by this section to the treasurer of state in accordance with section 5727.82 of the Revised Code. Beginning January 1, 2003, the natural gas distribution company shall pay the tax levied by this section to the tax commissioner in accordance with section 5727.82 of the Revised Code unless required to remit payment to the treasurer of state in accordance with section 5727.83 of the Revised Code.
(C) A natural gas distribution company with seventy thousand customers or less may elect to apply the rates specified in division (A) of this section to the aggregate of the natural gas distributed by the company through the meter of all its customers in this state, and upon such election, this method shall be used to determine the amount of tax to be paid by such company.
(D) A natural gas distribution company shall pay the tax imposed by this section at the rate of $.02 per MCF of natural gas distributed by the company through the meter of a flex customer. The natural gas distribution company correspondingly shall reduce the per MCF rate that it charges the flex customer for natural gas distribution services by $.02 per MCF of natural gas distributed to the flex customer.
(E) Except as provided in division (F) of this section, each natural gas distribution company shall pay the tax imposed by this section in all of the following circumstances:
(1) The natural gas is distributed by the company through a meter of an end user in this state;
(2) The natural gas distribution company is distributing natural gas through a meter located in another state, but the natural gas is consumed in this state in the manner prescribed by the tax commissioner;
(3) The natural gas distribution company is distributing natural gas in this state without the use of a meter, but the natural gas is consumed in this state as estimated and in the manner prescribed by the tax commissioner.
(F) The tax levied by this section does not apply to the distribution of natural gas to the federal government, or natural gas produced by an end user in this state that is consumed by that end user or its affiliates and is not distributed through the facilities of a natural gas company.
(G) All revenue arising from the tax imposed by this section shall be credited to the general revenue fund.

Structure Ohio Revised Code

Ohio Revised Code

Title 57 | Taxation

Chapter 5727 | Public Utilities

Section 5727.01 | Public Utilities Definitions.

Section 5727.02 | Persons Excepted.

Section 5727.03 | Combined Company to File Separate Report for Each Listed Activity of Company.

Section 5727.031 | Report by Entity Incidentally Supplying Electricity.

Section 5727.04 | Public Utility or Interexchange Telecommunications Company Not Exempt.

Section 5727.05 | Exemption of Nonprofit and Municipal Corporations.

Section 5727.06 | Taxable Property of Public Utility or Interexchange Telecommunications Company - Assessment by Tax Commissioner.

Section 5727.08 | Annual Report.

Section 5727.10 | Assessment - Hearing - Correction.

Section 5727.11 | Method of Valuation.

Section 5727.111 | Assessing at Percentages of True Value.

Section 5727.12 | Valuation and Assessment of Railroad Properties.

Section 5727.14 | Apportionment of Value of Property of Interstate Railroad.

Section 5727.15 | Apportionment of Value of Taxable Property of Public Utilities.

Section 5727.23 | Preliminary or Amended Assessment - Petition for Reassessment.

Section 5727.24 | Tax on Gross Receipts of Natural Gas Company or Combined Electric and Gas Company.

Section 5727.241 | Credit Against Tax on Natural Gas or Combined Company.

Section 5727.25 | Quarterly or Annual Returns Filed With Tax Payment - Additional Charges, Penalties, and Interest.

Section 5727.26 | Assessment for Failure to File Return or Pay Amount Due - Judgment Against Company.

Section 5727.27 | Company to Keep Records - Inspection of Records.

Section 5727.28 | Refunds.

Section 5727.29 | Refundable Credit Calculation.

Section 5727.30 | Public Utilities Subject to Annual Excise Tax.

Section 5727.31 | Annual Statement of Public Utility - Reports.

Section 5727.311 | Tax Payments by Electronic Funds Transfer.

Section 5727.32 | Contents of Statement and Reports.

Section 5727.33 | Ascertaining and Determining Gross Receipts of Certain Companies.

Section 5727.331 | Tax Reduction to Be Reflected in Rates.

Section 5727.38 | Excise Tax on Gross Receipts of Certain Public Utilities.

Section 5727.42 | Collection of Excise Taxes; Refunds; Failure to Pay Taxes.

Section 5727.45 | Crediting of Taxes and Penalties to Funds.

Section 5727.47 | Notice of Assessment - Petition for Reassessment.

Section 5727.471 | Assessment for Underpayment or Overpayment of Taxes by Public Utility.

Section 5727.48 | Extension of Time.

Section 5727.49 | Monthly Report of Secretary of State - Information Provided by County Auditors.

Section 5727.50 | Valuation if No Report or Erroneous Information Reported.

Section 5727.51 | Taxes on Dissolution or Retirement Required to Be Paid.

Section 5727.53 | Action to Recover Taxes.

Section 5727.54 | Cancellation of Articles of Incorporation or Certificate of Authority for Failure to Report or Pay Taxes.

Section 5727.55 | Prohibition Against Doing Business After Cancellation of Articles or Certificate.

Section 5727.56 | Reinstatement of Public Utility - Conditions - Designation of Agent.

Section 5727.57 | Petition for Judgment for Taxes - Injunction - Procedure - Evidence.

Section 5727.58 | Quo Warranto Proceedings.

Section 5727.60 | Penalty for Failure to Make Report.

Section 5727.61 | Affidavit Denying Unlawful Political Contributions.

Section 5727.62 | Payment of Witness Fees.

Section 5727.71 | Duty of Officials of Railroads to Testify.

Section 5727.72 | Duty to Testify or Bring Books or Papers.

Section 5727.74 | Effect When Tax Charged Invalid.

Section 5727.75 | Exemption on Tangible Personal Property and Real Property of Certain Qualified Energy Projects.

Section 5727.80 | Kilowatt-Hour Tax Definitions.

Section 5727.81 | Excise Tax Levied on Electric Distribution Company.

Section 5727.811 | Excise Tax Levied on Natural Gas Distribution Company.

Section 5727.82 | Monthly Return and Payment of Tax.

Section 5727.83 | Payment by Electronic Funds Transfer.

Section 5727.84 | Crediting Money in Kilowatt-Hour Tax Receipts Fund.

Section 5727.85 | Payments From School District Property Tax Replacement Fund.

Section 5727.86 | Payments From Local Government Property Tax Replacement Fund.

Section 5727.88 | Administration of Provisions.

Section 5727.89 | Failure to File Return or Pay Tax, Interest, or Additional Charge.

Section 5727.90 | Statute of Limitations.

Section 5727.91 | Refunds.

Section 5727.92 | Keeping and Preserving Records.

Section 5727.93 | Registration.

Section 5727.94 | Tax Statement Provided to Customers.

Section 5727.95 | Prohibited Acts.

Section 5727.99 | Penalty.