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January 6, 2009
06:47 pm
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D.C. Council Acts To Stabilize Heating Costs Print E-mail
The D.C. Council approved emergency legislation on October 11, 2005, that changes the way natural gas is taxed in an effort to provide some relief to rising heating costs. Authored by Councilmember David Catania and 7 of his colleagues, the measure stabilizes the natural gas tax rate and prevents the District from reaping a windfall when prices increase.

Catania noted, "The current scheme taxes consumers based on the price of natural gas, rather than the amount of gas used. As winter approaches, it is vital that the Council act swiftly to make this change so District residents can afford to heat their homes."

The Natural Gas Taxation Relief Emergency Act removes natural gas from the gross receipts tax by which that commodity has been taxed based on its cost. Under this emergency legislation, natural gas will be taxed according to the amount used during any billing cycle, similar to electricity.

The new tax rate has been established to ensure that the amount collected will meet previously stated projections for the current Fiscal Year, but not provide a financial windfall at the expense of consumers.

Catania continued, "Taxing natural gas according to consumption is good for all District residents. Low and middle-income families, as well as small businesses and non-profits, will experience tax relief and be able to better predict their gas bill thanks to this action."

For more information, please contact the Office of Councilmember David Catania by calling 202-724-7772.
Last Updated ( Thursday, 17 May 2007 )
 
© 2008 Councilmember David A. Catania