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Form Mcf-2 - Instructions Sheet For Completing Natural Gas Distribution Company Tax Return

Prescribed Tax Form

MCF-2B (05/01)

Instructions for Completing Natural Gas Distribution Company Tax Return (MCF-2)

(Companies not Using Aggregation Tax Reporting Method)

Reporting Periods and Due Dates

Quarterly tax returns are due by the 20

day of February, May, August, and November for the

preceding calendar quarter. If the due date falls on a weekend or state holiday, the due date is the

next business day.

Non-Taxable Distribution

Do not report on lines 1, 2, 3, or 4 of the return the distribution of natural gas to the federal

government or natural gas produced by an end user that is consumed by that end user and not

distributed through the facilities of a natural gas company.

Computation of the Tax

The first 100 MCF’s of natural gas distributed to each end user each month is subject to a rate of

$.1593. The next 1,900 MCF’s distributed to each end user per month is subject to a rate of

$.0877. All MCF’s over 2,000 distributed to each end user each month is subject to a rate of

$.0411.

All natural gas distributed to flex customers is taxed at a rate of $.02. Flex customers are all

industrial or commercial facilities that have consumed more than one billion cubic feet of natural

gas in one year at a single location during any of the previous 5 years. A flex customer is also

any industrial or commercial facility that purchases natural gas at a discounted rate under special

arrangements with the PUCO or a municipality.

Any end user that meets the definition of a flex customer on January 1, 2000, or thereafter,

remains a flex customer for purposes of this tax.

Form Mcf-2 - Instructions Sheet For Completing Natural Gas Distribution Company Tax Return