Natural and manufactured gas not delivered by pipeline

From the 2024 DOR Tax Exemption Study

Home Forms & Publications Publications By Subject Special Notices Brokered Natural Gas (BNG) Use Tax Print Brokered natural gas (BNG) use tax Issue Date October 31, 2019 Intended audience: pipeline businesses and end consumers of natural gas delivered through a pipeline. Effective Nov. 1, 2019, the department clarifies the use tax requirements of pipeline businesses and end consumers of brokered natural gas (BNG) delivered through a pipeline. The department has withdrawn Det. 14-0219, 35 Washington Tax Decision (WTD) 372 (2016). The determination incorrectly concluded that in-kind payment of lost and unaccounted for gas should be included in an end consumer’s BNG use tax base. Consumers must report and pay a use tax for the privilege of using natural gas or manufactured gas in Washington state. This includes compressed natural gas and liquefied natural gas (RCW 82.12.022). Natural gas is considered being used or put to use in Washington whenever it is burned or stored in a taxpayer’s own facility for later consumption by the taxpayer, including such use by pipeline businesses (RCW 82.12.010(6)(h)). Pipeline businesses Delivering inside Washington state Beginning with the Nov. 2019