How It Works

Billing Analysis

The process begins with a brief discussion with facility staff to identify which utility meters serve facility areas where manufacturing or other exempt activities are conducted. We examine recent utility bills for those meters, which include electricity and natural gas for most states. For meters that have been charged sales tax in error, we can determine the amount of sales tax refund that would be recouped, if the meter can be certified exempt.

Site Survey

One of our professionals will visit the facility to survey areas for the candidate meters. Each building load (such as lights, office equipment, air conditioning and heating, and process equipment) is visited and recorded in survey tables. Hours of operation and other data are gathered.

Report and Exemption Certificates

The billing information collected from the utility bills, along with the survey data describing each item of equipment, are formulated into a written report, which identifies how utility use is allocated at the facility. The report is completed by one of our professionals. A sales tax exemption certificate is prepared for each utility meter that we determine to be tax exempt. In some cases where more than one utility provider is involved for the meter, several certificates are created for each meter, to be forwarded to each provider during the period when a sales tax refund is claimed (if applicable).

Processing the Exemption and Follow Up

The Sales Tax Study report and other forms are assembled and forwarded to the customer, to be signed and dated, and returned to our office. Once received, we file all paperwork with the utilities and state, as needed.

Utility Purchases That Can be Exempted

The utility purchases that can be exempted from sales tax include electricity and natural gas in nearly all states, and additional utilities can be exempted in some states, such as water, steam, and fuel.

Types of Facilities that Qualify for Sales Tax Utility Exemptions

For the states that allow utility exemptions, manufacturing companies qualify in all the states. In addition, some other types of facilities are allowed, such as Residential (housing complexes, nursing homes), Agriculture, Material Extraction from the earth (including exploring for, producing, or transporting), Semiconductor fabrication, Pharmaceutical fabrication, Printing (or engraving) operations, and other types of facilities.