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Business Taxes Law Guide—Revision 2024
Natural Gas Surcharge Annotations
Out-of-State Liquid Natural Gas Provider
A Company operates a natural gas plant in the state of Arizona where it produces liquid natural gas (LNG) for use as a motor vehicle fuel and in industrial processes. The Company then transports the LNG into California by truck and trailer and delivers the LNG to customers for use as motor fuel or in their industrial processes. Company also makes wholesale sales of LNG to a California subsidiary that operates retail LNG and compressed natural gas vehicle fueling stations in the state.
Company is not a "gas corporation" for purposes of Public Utilities code section 222 or a "public utility" or "public utility gas corporation" for purposes of Public Utilities code section 216, subdivision (a), and Public Utilities code section 891, subdivision (b). Therefore, Company is not required to collect the natural gas surcharge on sales to its customers or its subsidiary. 8/19/14