Across the United States, individual states have laws regarding utility tax as well as business and occupation taxes. The specifics of these laws differ between states. However, most include a tax on public businesses that utilize energy or other utilities in processing, manufacturing, or other types of recognized applications.
Depending on the use of the utility, it may qualify for exemption from taxation. Predominant Use Studies outline the uses of a company’s equipment as a means of demonstrating their qualification for tax exemption within the state in which the business operates.
Hiring a utility tax service is an effective way to maximize tax exemptions and recover taxes paid unnecessarily. These services work closely with the business to complete the required Predominant Use Study, gather necessary supporting documentation, and help strategically plan to maximize tax exemptions and refunds.
Experience in the Industry
Choosing a utility tax service with experience in completing utility studies is essential. Professional services with the necessary experience can streamline the process while accurately providing annual usage for all devices in the facility.
Understanding of State Laws
Qualifying specific devices and meters as exempt or taxable is a complex process that varies from state to state. With a clear understanding of the relevant statutes in each state, experienced auditors know precisely how to classify different kinds of equipment as well as their uses to ensure that the exemption request is honored.
Expertise in the Process
Always choose a utility tax service with a proven track record of supporting the business throughout the process. A top service completes the Predominant Use Study, ensures all past overpaid taxes are refunded, and sets up future qualifying exemptions.
B. Riley Financial has a proven record of helping clients to capitalize on utility sales tax exemptions. To learn more, see us at brileyfin.com.
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