Connecticut State Department of Revenue Services

AN 99(3)

Connecticut Registration Requirements for Gas Marketers

PURPOSE: The purpose of this Announcement is to clarify when gas marketers are required to register with the Department of Revenue Services and to file quarterly gross earnings tax returns under chapter 212 of the Connecticut General Statutes.

EFFECTIVE DATE: Upon issuance.

STATUTORY AUTHORITY: Conn. Gen. Stat. §§12-264 and 16-258a.

BACKGROUND:

Conn. Gen. Stat. §12-264 subjects each "company required to register pursuant to section 16-258a" to a quarterly tax upon its gross earnings from operations in this state. Conn. Gen. Stat. §16-258a requires each person who "sells natural gas to an end user in this state ... to register with the Department of Public Utility Control prior to making any such sale by filing a form supplied by said department." Form NGSR-2.2, Natural Gas Seller Registration Form, is the form that the Department of Public Utility Control (DPUC) supplies to sellers of natural gas wishing to register with the DPUC for purposes of Conn. Gen. Stat. §16-258a. Because some persons who may not be required to register pursuant to Conn. Gen. Stat. §16-258a have registered, an issue has arisen concerning whether such persons are required to register with the Department of Revenue Services (DRS) and to file quarterly tax returns under chapter 212 (even if to report zero gross earnings).

These sellers of natural gas who may be required to register pursuant to Conn. Gen. Stat. §16-258a are commonly referred to as gas marketers. However, the registration requirement under Conn. Gen. Stat. §16-258a does not apply to:

  • Any person who is a gas company, as defined in Conn. Gen. Stat. §16-1;
  • A municipal gas utility established under chapter 101 of the Connecticut General Statutes;
  • Any other gas utility owned, leased, maintained, operated, managed, or controlled by any unit of local government under any general statute or any public or special act; or
  • A gas pipeline or gas transmission company subject to the provisions of chapter 208 of the Connecticut General Statutes.

WHEN IS A GAS MARKETER REQUIRED TO REGISTER WITH DRS?

A gas marketer is required to register with DRS if the gas marketer registers with DPUC, whether or not the gas marketer is required to register with DPUC pursuant to Conn. Gen. Stat. §16-258a. (Conversely, if a gas marketer is not required to register with DPUC pursuant to Conn. Gen. Stat. §16-258a, and chooses not to register with DPUC, the gas marketer is not required to register with DRS.) A gas marketer registers with DRS by filing Form REG-1, Application for Tax Registration Number. Once registered with DRS, the gas marketer will be required to file Form UCT-212, Gas, Electric and Steam Companies Gross Earnings Tax Return, each calendar quarter on or before the last day of the month following the end of such quarter.

EFFECT ON OTHER DOCUMENTS: None affected.

EFFECT OF THIS DOCUMENT: Announcements alert taxpayers to new developments (other than newly enacted or amended Connecticut or federal laws or newly released judicial decisions), including new administrative positions, policies or practices Announcements alert taxpayers to new developments (other than newly enacted or amended Connecticut or federal laws or newly released judicial decisions), including new administrative positions, policies or practices.

FOR FURTHER INFORMATION: Please call the Department of Revenue Services during business hours, Monday through Friday:

    (toll-free from within Connecticut), or (anywhere).
TTY, TDD and Text Telephone users only may transmit inquiries 24 hours a day by calling 860-297-4911.

AN 99(3)
Gross Earnings Tax
Issued 6/18/99