Tax Exempt States

Utility Cost Reduction for Manufacturers in Various States

  • exempt states
  • non-exempt states


Who qualifies for sales tax exemption on electric, gas, and water?  Besides most government agencies and not-profit entities, a manufacturer’s or industrial processor’s meter(s) may qualify for an exemption. In 3 states, IndianaIowa, and Kansas a restaurant’s meter(s) may qualify also.

Is the sales tax exemption the same in all states?  No. The requirements to qualify vary as do the procedures, documentation, utility study, the value of the exemption, and the potential look back period for a refund.

The Utility Study.
This is required in all states and is the cornerstone for the exemption. The utility study determines the percentage of exemption, and therefore the amount of savings. Engineers experienced in these utility studies will not undervalue the percentage of savings and can maximize the savings. The utility study breaks down a meter’s consumption between production consumption and non-production consumption based on individual state tax guidelines and computes the percentage of consumption that is exempt.

On Your Mark’s Success for its Clients. 
On Your Mark has specialized in obtaining utility sales tax exemptions for 37 years, and has filed 3150 exemptions as of 2013. 3065 certificates and applications were approved upon submission and state/utility company review. On Your Mark appealed all 85 denials and represented its clients in appeal at no extra charge. Through the appeal process, including Tax Court, On Your Mark prevailed in 84 cases and the denials were overturned and subsequently approved. We lost one case.

The Value of On Your Mark’s work and advocacy on behalf of its clients. 
The reason we mention our experience with filings is to give clients and idea of what they are getting when On Your Mark takes on obtaining valid exemptions for all meters that qualify. When the State disagrees with our position, we’ve found the States are not always right, and as a matter of fact, our experience shows that 84 out of 85 times in the past 35 years when they’ve disagreed with On Your Mark, they were wrong. On Your Mark has demonstrated we have the experience, the tools, and the tenacity to successfully defend and sustain the rights for our clients.

On Your Mark’s fee structure. 
On Your Mark performs all the work required to qualify and apply for the exemption on each utility meter which supplies production, and to apply for any refund. The work is performed at no charge. Once a savings is obtained by the client,  then On Your Mark bills for its services. If there is no savings, there is no fee charged to the client.