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Services

At USTC, we help organizations understand their state’s utility sales tax exemption and refund legislation so they can take full advantage of these great opportunities to save money and, in many cases, get money back.
Utility Study

 

In most states, a utility study is required to qualify for a utility sales tax exemption and/or refund. In states where predominant use is required, this is often called a predominant use study.

USTC has performed over a thousand utility studies across a wide range of industries and in every state that offers utility sales tax exemptions. In addition, we stand behind our studies and provide ongoing support in the event of a sales tax audit as well as long-term document storage and retrieval at no additional cost.

To minimize risk exposure, the study must be both comprehensive and accurate. USTC exceeds the state’s requirements by using only  licensed engineers to compile and certify our studies. Choosing USTC to perform your study ensures the best possible outcome.

Utility Tax Exemption

 

Utility sales tax exemptions (or reductions) are available in about three dozen US states for companies engaged in qualifying activities.

 

USTC is intimately familiar with the tax code in every state and has secured exemptions for clients that range in size from small firms to Fortune 500 companies. Our clients choose us because of our reputation for delivering the best possible results with minimum disruption to operations.

 

Utility sales tax exemptions are typically use-based. In other words, the qualifications are based on some type of statutorily exempt “usage.” For example, exemptions are available in various states for companies engaged in manufacturing, agriculture, horiculture, long-term housing, apartment complexes, nursing homes, hotels, mining, drilling, research & development, food service and others.

Utility Tax Refund

 

Companies that qualify for an exemption may also qualify for a sales tax refund. USTC has recovered millions of dollars for clients that span a wide range of industries including manufacturing, agriculture, research & development, food service, residential facilities and many more.

 

Several factors can affect the amount of your utility sales tax refund amount including:

 

  • Statute of Limitations. Ranges from 12 to 48 months, depending on the state.

  • Exempt Percentage. Typically determined by the results of the utility study.

  • Previous Exemptions. For example, with your previous utility supplier

  • Location History. Amount of time the business has been at its currect location.

  • Change of Ownership. Recent ownership changes can somtimes be a factor.

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