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NEW JERSEY NATURAL GAS MAKES $41 MILLION PAYMENT TO STATE FOR GROSS RECEIPTS AND FRANCHISE TAXES

 NEW JERSEY NATURAL GAS MAKES $41 MILLION PAYMENT
 TO STATE FOR GROSS RECEIPTS AND FRANCHISE TAXES
 WALL, N.J., April 3 /PRNewswire/ -- New Jersey Natural Gas Company (NJNG) this week forwarded a check for nearly $41 million to the New Jersey Department of the Treasury to cover its entire 1992 obligation for gross receipts and franchise taxes. The money was collected from customers under state law through a surcharge on utility bills.
 Company officials believe it is the largest check NJNG has ever written.
 Gross receipts and franchise taxes represent about 14 percent of each bill customers receive from NJNG and other public utilities regulated by the New Jersey Board of Regulatory Commissioners. The average NJNG residential heat customer paid about $111 for these taxes during calendar 1991.
 The money is paid to the state by utilities in lieu of personal property taxes and state income taxes. The state eventually redistributes about 65 percent of the money collected from utilities to the municipalities where the companies operate or have facilities and keeps the remaining 35 percent.
 New Jersey expects to collect more than $950 million from public utilities this year. It anticipates keeping about $275 million and redistributing the rest to municipalities statewide.
 Under new law enacted in 1991, public utilities are now obligated to pay their annual gross receipts and franchise taxes liability in one lump sum on April 1. Previously, the tax money was sent to the state treasury in installments.
 As of Jan. 1, the taxes are being computed on a per-therm basis instead of the revenue-based formula that had been used historically.
 The check, totaling $40,917,700, is made up of three components: a gross receipts tax of about $22 million, a franchise tax of about $13.8 million, and a state excise tax of about $5.1 million.
 A gross receipts tax is levied as an alternative to personal property tax on utility plants and facilities. A franchise tax represents an assessment for the use of public streets to distribute the energy source.
 NJNG serves more than 315,000 customers in virtually all of Monmouth and Ocean counties and parts of Morris and Middlesex counties.
 -0- 4/3/92
 /CONTACT: Glenn J. Phillips, 908-938-1112, or David M. Klucsik, 908-938-1114, both of New Jersey Natural Gas/ CO: New Jersey Natural Gas Company ST: New Jersey IN: UTI SU:


CK -- NY024 -- 4757 04/03/92 10:07 EST
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Publication:PR Newswire
Date:Apr 3, 1992
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