Innovative has saved businesses tens of thousands of dollars annually by conducting and implementing a predominant use/utility exemption study ~ Successful studies typically also lead to large refunds for previously overpaid taxes.
Utility bills can be a crippling burden on any bottom line, regardless of the industry. In 2017, the U.S. industrial sector spent nearly $68 billion on electricity alone. If your business uses electricity, water, or natural gas for production purposes, it is likely a Predominant Use Study will benefit you. Innovative Property Tax Solutions has a way to help!
Thirty states now offer a sales tax exemption to qualifying businesses. If your company is in the industrial sector (fabricating, manufacturing, or the production industry), hospitality, restaurant/food production, agri-business, or nursing care, you could benefit from a utility exemption study. Thousands of dollars can be refunded and saved annually.
Here is an example of an exemption benefit:
Let’s say hypothetical company World Wide Widgets is a manufacturing facility spending $8,000 per month on electricity bills. Using a 7% sales tax rate, approximately $560 sales tax is paid per month, or $6,720 per year.
Our Predominant use study determined the electric meter qualified for a 100% sales tax exemption. The company receives a refund of $20,160 for previously overpaid taxes and will now save $6,720 per year moving forward.
Innovative’s knowledge and thorough understanding of state and local tax laws and compliance requirements will ensure your company submits an accurate utility exemption claim that substantiates the highest possible exemption percentage.
DISCLAIMER: The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting, or tax advice or opinion provided by Innovative Property Tax Solutions, Inc.. This material may not be applicable or suitable for the user’s specific circumstance or needs. This information may require consideration of non-tax and other tax factors before contemplating action. If there are specific questions, please contact an Innovative Property Tax Solutions specialist directly or other tax professional before taking action based upon this information. Innovative Property Tax Solutions, Inc. assumes no obligation to inform the user of any changes in tax laws, state specific variations in the law, or other factors that could affect the information contained herein.
Curious if your company qualifies? Contact us today!
