Historical March 1991 article. Dates, prices, services and contacts describe the source period; current availability has not been established.
Smaller industrial and commercial gas users who buy from Laclede Gas currently pay a 10 per cent gross receipts tax and a 1 per cent sales tax. Residential users pay a 4 per cent gross receipts tax.
These taxes would not change if the fee is adopted by voters, large consumers of gas would have to pay the same rate of taxes as other commercial users.
The transportation fee was placed before the voters in November of 1990 and was defeated.
However, many individuals contend that the fee was rejected because voters were not provided adequate information on the fee.
As a result, the Board of Aldermen recently approved an ordinance authorizing that the transportation fee be resubmitted to the voters on April 2, 1991.
A simple majority is required for passage.
If voters approve the transportation fee, the measure would be effective May 1, 1991.
The license fee is payable in quarterly installments.
The fee is based on purchase price paid for the natural gas or methane transported to the consumer for use within the City during the preceding three month periods.
All information obtained by the City in the collection of the fee shall be confidential.
The gas transportation license fee does not apply to the residential user of natural gas or methane. Rather, the fee applies to large commercial and industrial users that purchase natural gas from suppliers outside of the City. At the present time, the large consumers are escaping local taxes paid by smaller industrial and commercial gas users.
The natural gas transportation fee that appears on the April 2, 1991 ballot would require the large consumers of gas to pay the same rate of taxes as other commercial users.
On April 2, 1991, voters of the City of St. Louis will be asked to approve a natural gas transportation licensing fee.
This licensing fee would not affect individual consumers or the vast majority of businesses.
However, the licensing fee would restore to the City approximately $3 million in revenue.
If approved by voters, large commercial and industrial users of methane and natural gas would pay an 11 per cent transportation license fee on the price of gas purchased from suppliers outside of the City and transported to the City for commercial or industrial use.
The proposal would affect approximately 35 area companies.
Last year the Federal Energy Regulatory Commission adopted a rule allowing large industrial gas users to purchase gas directly from producers. Prior to the change, large gas consumers in St. Louis purchased gas through Laclede Gas and were subject to local taxation.
As a result of the change, large gas consumers now avoid paying taxes that smaller customers, who deal directly with Laclede Gas, must pay.
Originally published in The Times of Skinker-DeBaliviere, March 1991.
Read this article in the original newspaper issue.
Original source: SD_Times1991_03.pdf, printed page(s) 2; PDF page(s) 2.
