Tax on natural gas

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Retail natural gas is taxed, like electricity, in order to pay for various incentives and programs. These taxes will appear on your gas bill each month, and they will charge you depending on your natural gas usage.

Sales tax

The sales tax is a tax paid to the state. It applies not only to natural gas, but to the sales of any goods and services.

Energy efficiency charges

Most states have energy efficiency programs for electricity as well as for natural gas. In order to pay for these programs, gas customers are charged an extra percentage of their gas bill. The charge paid in the gas bill will go to funding energy efficiency. For example, customers willing to renovate their homes and improve it's heat isolation can receive money to help with this expense. Energy efficiency programs also fund Research & Development for renewable energy or energy efficiency.

Revenue based charges

The utility companies and energy suppliers are themselves taxed on the sales of electricity and natural gas to customers. Many local municipalities impose taxes on the utility company's revenue.To pay for this tax, they charge the customer. These costs are recovered through a tariff surcharge and may vary depending on the municipality.

Other state surcharges

Other surcharges can include charges to incentivize education and outreach, energy assistance for people with low-income, with medical problems, or assistance for elderly people, just like for electricity.