MN HF4650

Exempts fees related to natural gas sold for residential use from sales tax for billing periods May through October, provided the fees are subject to a cost recovery plan for price increases during February 13-17, 2021, identified in Minnesota Public Utilities Commission docket G-199/CI-21-135.

Requires fees to be separately stated and labeled as fees pursuant to the cost recovery plan in order to qualify for the exemption.

Mandates utilities apply to the Minnesota Commissioner of Revenue by October 1, 2022, for refunds of sales taxes collected on qualifying natural gas fees added to residential customer bills between September 1, 2021, and June 30, 2022.

Requires utilities to provide the Minnesota Public Utilities Commission with a plan for crediting exempt taxes to residential customers and return any uncredited amounts to the commissioner.

Applies retroactively to fees for natural gas sales made after February 12, 2021, and before February 18, 2021, that are billed between September 1, 2021, and December 31, 2026.