A utility sales tax exemption allows for a full, partial, or tiered removal of State, City, County, and MTA sales taxes on electricity, natural gas, and/or water invoices for certain industries. This manufacturer’s raw material sales tax exemption is unique since it is not allowed on a company-wide or location basis. The utility sales tax exemption is allowed on a per-meter basis only for States where this exemption is available. Most States will require proof of qualification (a predominant use study) for this exemption. For most States, there are also refunds of utility sales taxes available; limited to the statutes of limitations by the individual States (24-120 months where allowed). Contact us for more details.
In most States, if the utility sales tax exemption is claimed, a Predominant Use Study is also required. Proof of utility sales tax exemption entitlement is best proven by an engineer-certified Predominant Use Study.