Taxes

There are several taxes associated with your Nicor Gas bill, including state, utility fund, municipal and gas use. These taxes make up the remaining five to 10 percent of your natural gas bill over one year.

State Utility Tax
The State Utility Gas Revenue tax is mandated by the State of Illinois and is not a sales tax. It can be calculated one of two ways.  The first method reflects five percent of the subtotal of Delivery Charges and Natural Gas Cost.  The second method is determined by multiplying the number of therms you used by $.0240.

Utility Fund Tax
This tax funds the Illinois Commerce Commission, which regulates all Illinois utilities. It is mandated by the State of Illinois and is 0.1 percent of the subtotal of Delivery Charges and Natural Gas Cost.

Municipal Utility Tax:
Some municipalities charge this tax based on utility revenue. It is authorized by Section 8-11-2 of the Illinois Municipal Code and is applied according the local municipality's ordinance.

Gas Use Tax :
Some municipalities charge this tax based on your gas usage.

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