More than half of the states in the USA now offer specific types of businesses a utility sales tax exemption based on the use of natural gas and electricity. A few states also extend the tax exemption to the use of water in specific types of applications and processes, typically those in manufacturing or process and related industries.
To qualify for these utility sales tax exemptions, the company must request and complete a predominant use study. This can be done in-house, but it is a complicated and detailed study of the use of each piece of equipment using the utility based on each meter in the facility.
Hiring a company offering a utility tax service is the most common route for a business to take.
Years of Experience in the State
When selecting a utility tax service, be sure they have experience in completing the predominant use study in your state. Each state has different requirements and different qualifying factors to consider. For national businesses and companies, consider a service with the ability to provide the survey and the reporting in each state where you have a facility.
Pre-Study Review and Analysis
The top providers of predominant use studies complete a complimentary review of your facility or business. This provides an estimate of the tax refund and future utility sales tax exemption based on a review of past utility records. This information allows you to determine if the survey is a benefit.
Services and Support Provided
The best utility tax service provides all documentation and filing for your business. The provider will also work with the utility company to manage any questions and to ensure a streamlined process.
If you are looking for the best utility tax service in your state, consult with the experts at B. Riley Financial. To find out more or to schedule a complimentary review, see us at brileyfin.com.