Minnesota (MN) Tax Exempt

Minnesota Tax ExemptWho can qualify in MN for a sales tax exemption on utilities?
If a manufacturer or an industrial processor files a valid utility exemption certificate Form ST3, its utility purchases will be tax exempt to the extent of the production consumption of a particular meter. A utility study is required to determine the percentage of production that a particular meter consumes.

How can one obtain the sales tax exemption on utilities in MN? 
Once Form ST3 is filed with and approved by the utility company, the account is tagged exempt. The sales tax exempt status is reflected directly on the bill, and sales tax will be reduced by the appropriate percentage.

Does the State require that Form ST3 and the utility study be completed by a professional utility engineer?
No. The state and utility company will accept these forms to be completed by the taxpayer. However most companies in MN use an experienced professional for various reasons. The state highly recommends using a professional. Professionals can maximize the savings, and certify the accuracy of the utility study.

What does the utility study entail?
The utility study is to list every piece of equipment and appliance that uses the utility, e.g. electricity and state each piece’s individual annual KWH consumption. The same process is required for non-production usage. It is from these two lists one can calculate the percentage of annual consumption that is used for production, and therefore determines the percentage of exempt utility purchases. That is why the state requires accuracy and certification of the utility study.

What is the scope of a Professional performing the utility exemption work in MN?

  • Accurate completion of the utility study: On Your Mark completes and certifies the utility study. There is no charge for the study and its evaluation until after the savings has been approved.
  • Claim for refund: In MN, a refund claim will be filed and vigorously pursued  by On Your Mark if the exempt meter qualifies to recover sales tax paid during the  42 month statute of limitations.
  • Entire Process handled from start to finish: On Your Mark’s clients need not have hardly any input or time spent. On Your Mark performs the entire exemption service and typically has the exemption completed and filed in 30 days from authorization to proceed.
  • Risk-free Method to Obtain the Utility Sales Tax Exemption: On Your Mark performs the utility study and evaluation at no charge. If there’s no savings, no fees. The only fees occur after the company receives savings.
  • Benefits of the sales tax exemption on utilities: Typically a 5-8% savings is obtained once the MN sales tax exemption is approved, and the sales tax is immediately reduced or removed from the bill .

Start the process now; spend no time and have it completed in 30 days. Contact Mark Winski today!