Who can qualify in RI for a sales tax exemption on utilities?
A manufacturer or an industrial processor can file a valid utility exemption certificate with its utility company. The sales tax will be eliminated from the bill. But to the extent consumption on the meter is used for non-production, that portion of the tax is to be reported on the monthly use tax report. A utility study is required to determine the percentage of production consumed on that a particular meter.
How can one obtain the sales tax exemption on utilities in RI?
When the utility company receives the utility exemption form, the account is tagged exempt, and the sales tax is removed from the bill.
Does the State require that the exemption certificate and the utility study be completed by a professional utility engineer?
No. In RI the taxpayer may complete and submit the exemption certificate and the utility study. However most companies in RI use an experienced professional. On Your Mark completes and certifies the utility study so it avoids the concern of the utility co. coming to the customer for back sales tax.
What does the utility study entail?
The utility study is to list every piece of equipment and appliance that uses the utility for production, e.g. electricity and each piece’s individual annual KWH consumption is to be included. The same process is required for non-production usage. It is from these two lists one can the exempt percentage of the utility purchases. That is the purpose of the utility study.
What is the scope of a Professional performing the utility exemption work in RI?
- Accurate completion of the utility study: The utility study is completed, certified, and filed by On Your Mark. There is no charge for the study and its evaluation until the savings has been approved.
- Claim for refund: In RI, an exempt utility meter can qualify for a refund up to the full 36 months covered by the statute of limitations. If a meter qualifies, a refund claim is included in the scope of work.
- Does filing of the utility exemption and/or refund claim raise any red flags? No. This exemption is similar to every exempt purchase for which an exemption certificate is filed with the supplier. The only difference with the utility exemption is that a utility study is required to provide documentation of the production percentage.
- Entire process handled from start to finish: Once On Your Mark is authorized to complete the exemption work, there is hardly any time spent by the client. On Your Mark performs the entire exemption service and typically has the exemption completed and filed in 30 days. All questions and communication for either the utility co. or the state are handled by On Your Mark.
- Risk less 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 when the company receives savings.
- Benefits of the sales tax exemption on utilities: Typically a 5-8% savings is obtained once the RI 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!