Our Kentucky predominant use study will provide the proof required by the Kentucky Department of Revenue for the utility sales tax exemption. The utilities must also meet or exceed the 3 percent “cost of production” requirement too. Each meter will need to have a predominant use study performed to determine the percentage of electricity, natural gas, or water that is used in qualified processes versus the taxable uses (such as office, warehouse, retail, staging/finished areas, transportation, or other taxable uses).
If more than 50% exempt usage is determined, then 100% of the sales tax may be removed from the utility invoices going forward. The sales taxes paid in error may also be refunded up to the statute of limitations (48 months in Kentucky); including the sales taxes paid in error on previous utility providers’ invoices (if applicable).
Our predominant use studies are the most comprehensive accounting for all power draw. This means every piece of equipment, lighting, heating , cooling, refrigerators, microwaves, computers, exit signs, and anything else drawing power is accounted for within our Kentucky predominant use studies. We also balance our utility studies with actual usage history from the last twelve months to ensure they are not seasonal nor biased. This ensures we can defend our predominant use studies with the Department of Revenue, when needed. Our studies are also certified by our professional engineer for accuracy.
99% of our clients prefer our performance-based pricing (when refunds are available) to ensure they receive their exemptions and refunds before any payment is made to us. When the Department of Revenue questions our predominant use studies, we handle the defense of those studies at no additional cost to ensure our clients retain their exemptions and refunds. Our Kentucky predominant use studies include our money-back guarantee backed with a Professional insurance policy.