Q&A with the Pennsylvania Department of Revenue
Does the DOR treat the sale of natural gas as the sale of tangible personal property, intangible personal property, or a service for CNI Tax and CS/FF Tax apportionment purposes?
The Tax Reform Code provides:
All business income of natural gas companies subject to regulation by the Federal Power Commission or by the Pennsylvania Public Utility Commission shall be apportioned to this Commonwealth by multiplying the income by a fraction, the numerator of which shall be the cubic foot capacity of the taxpayer's pipelines in this Commonwealth, and the denominator of which shall be the cubic foot capacity of the taxpayer's pipelines everywhere, at the end of the tax period. 72 P.S.§7401(3)2.(c)(2).