Roughly 30 states allow manufacturing and agricultural companies to reduce or entirely exempt sales tax on electricity and natural gas purchases. These states may also exempt residential use areas of nursing homes, retirement homes, hotels, senior living and assisted living facilities. A predominant use study, also known as a utility sales tax exemption, is an evaluation of an organization’s electric and natural gas consumption that can potentially lead to a partial or total state and local sales tax exemption. We can advise customers if they qualify for such a sales tax exemption, conduct the state-mandated on-site study, compile the comprehensive report and file the proper forms with the state and with the utility companies, as required. In many cases, after completion of the study we can even recoup past years’ overpaid sales tax, as far back as three to ten years depending on the state.
The following industries may qualify:
A utility sales tax exemption - predominant use study analyzes the use of electricity, natural gas and water for each piece of equipment and includes:
Explore Related Offerings
Click Here to Request an Assessment Today
Dealing with the vast complexity of state tax law requires collaboration among a network of experienced professionals with broad backgrounds and experience. Eide Bailly’s state and local tax team brings that to each of its clients, having years of combined experience advising companies of all sizes with a full range of state tax consulting needs. Our approach, which utilizes our experience as former state Department of Revenue auditors, is to focus on not just the problems, but solutions to those problems.
It all starts with a conversation.
Are you ready for a comprehensive approach to proactively managing tax concerns?