Washington Issues Guidance on Taxability of Renewable Natural Gas

Effective July 28, 2019, the production and sale of renewable natural gas is no longer subject to Washington public utility tax. The production and sale of renewable natural gas is subject to Washington business and occupation (B&O) tax. Sales of renewable natural gas to consumers are subject to retailing B&O tax and retail sales tax. Sales of renewable natural gas for resale are subject to wholesaling B&O tax. Businesses that produce or process renewable natural gas are subject to manufacturing B&O tax and either retailing B&O tax or wholesaling B&O tax. “Renewable natural gas” is defined as a gas consisting largely of methane and other hydrocarbons derived from the decomposition of organic material in landfills, wastewater treatment facilities, and anaerobic digesters. (Special Notice, Washington Department of Revenue, July 24, 2019)

Posted on September 30, 2019