Industry Topics for Natural Gas Surcharge

Natural Gas Storage Providers

Typically, natural gas storage providers are not required to register with us for a natural gas surcharge account and do not owe the natural gas surcharge on the natural gas consumed in the storage operations.

This is because the natural gas consumed by the natural gas storage provider is not provided as a service from a public utility gas corporation and is not taken directly from an interstate pipeline. In addition, natural gas storage providers normally do not sell or even own the natural gas stored for its customers. Natural gas storage providers are required by the California Public Utilities Commission (CPUC) to annually submit a list of customers to both the CPUC and the CDTFA.

Exemptions

The surcharge does not apply to the following:

  • Natural gas consumed that was not provided to you as a service from a public utility gas corporation or was not received by you directly from an interstate pipeline.
  • Use of natural gas to generate power for sale.
  • Sale or purchase of natural gas for resale.
  • Sale or use of natural gas for enhanced oil recovery.
  • Natural gas used in cogeneration technology projects to produce electricity.
  • Natural gas produced in California and transported on a proprietary pipeline.
  • Natural gas consumption that is prohibited from taxation under the United States Constitution or the California Constitution.
  • A public utility gas corporation is relieved from liability to collect the surcharge insofar as the base upon which the surcharge is imposed is represented by accounts which have been found to be worthless and charged off in accordance with generally accepted accounting principles.
  • A municipality, district, or public agency that offers in published tariffs home weatherization services, rate assistance for low-income customers, or similar programs is relieved from liability to collect the surcharge from its customers located within its service territory.

Sales of Liquid Natural Gas (LNG) for use in a Motor Vehicle

LNG sold for use in a motor vehicle is not subject to the natural gas surcharge unless the seller of the LNG is a public utility gas corporation.

If the seller is a public utility gas corporation, then the LNG sold to consumers would be subject to the natural gas surcharge and the seller would be required to collect the surcharge on the LNG sold to consumers.

Registration with Other Agencies

Public utility gas corporations must register with the California Public Utilities Commission prior to selling natural gas to any customers in California.

Visit the sites below for more information about other state, federal, and local taxing and licensing information:

  • The Governor's Office of Business and Economic Development (GO-Biz) offers extensive information on state, local, and federal permit requirements. For a listing of their assistance centers, visit GO-Biz.
  • CalGold for information about permit and licensing requirements for other state, federal, and local authorities (for example, you may need to be registered with the Franchise Tax Board or the Employment Development Department).
  • California Tax Service Center for additional tax information.

You may also want to consult with a tax professional for assistance on other agency requirements.

Refunds

Submit a Claim for Refund – File your claim for refund through our online services homepage. Log in using your username and password and select the account for which you want to claim a refund. Select the More link under the I Want To section. Then select the Submit a Claim for Refund link and follow the prompts.

Additional Refund Filing Options - You may also file your claim for refund by filing either:

  • A form CDTFA-101, Claim for Refund or Credit, or
  • An amended return(s) stating the specific reason(s) for the overpayment.

Claims for refund must be in writing, state the reason for overpayment, specify the period for which you made the overpayment, and the amount of the refund requested. Additional refund details can be found on our Filing Claims for Refund - Special Taxes and Fees webpage.

You may email the claim form to the Refund Team or mail it to:

California Department of Tax and Fee Administration
Appeals and Data Analysis Branch (MIC 33)
P.O. Box 942879
Sacramento, CA 94279-0033

Deadline to File a Claim for Refund

Be sure to file your claim for refund by the applicable deadline. If you do not file on time, we cannot consider your claim, even if you overpaid the surcharge. You must file a claim for the refund by whichever of the following dates that occurs last:

  • Three years after the due date of the return on which you overpaid the surcharge.
  • Six months after you overpaid the surcharge.
  • Six months from the date a determination (billing) became final.
  • Three years from after the CDTFA collected an involuntary payment, such as from a levy or lien.

If you have questions about your deadline to file a refund claim, contact our Customer Service Center at 1-800-400-7115 (CRS:711) weekdays between 7:30 a.m. and 5:00 p.m., Pacific Time (except state holidays).