SALT Report 1390 – The 2012 taxable value for refinery gas for Louisiana sales and use tax purposes has been set at $1.797 per thousand cubic feet. This price is the maximum value that can be set for refinery gas by state and local authorities.
State law provides that the taxable value for refinery gas is computed by multiplying 52 cents per thousand cubic feet by a fraction of the posted price for a barrel of West Texas Intermediate Crude Oil on December 1 of the preceding calendar year. The formula is as follows – $0.52 x ($100.20 ÷ $29.00) = $1.797 per MCF.
Prior to July 11, 2005, refinery gas that was sold, exchanged, or bartered, rather than used by the producer, was subject to a different rate of sales tax. However, Act 458 changed the definition of “sales price” for refinery gas to be the same as the “cost price” for use tax purpose.
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