A predominant use study in Texas will provide you with the proof that you need according to the Texas Administrative Tax Code Rule 3.295 in order to qualify for utility sales tax exemptions and refunds. A predominant use study that is performed by a certified engineer will need to be performed on each meter in order to eliminate any utility tax liability.
Utility Sales Tax Exemptions and Refunds
If the predominant use study in Texas concludes that more than half of the natural gas or electricity per meter is being used in qualifying processes, then the meter will qualify completely for utility sales tax exemption and possibly even a refund.
For any meters that qualify, the local and state level sales taxes can be removed from all utility invoices in the future. In addition, a refund may also be issued for utility sales taxes that were paid in the past four years. This includes any sales taxes that may have been paid erroneously on previous utility invoices.
The prominent use study in Texas is the most comprehensive and accounts for a complete power draw. This means that all computers, refrigerators, equipment, exit signs, lighting, heating and cooling, microwaves, and anything else that draws power will be accounted for in the prominent use study in Texas. Texas Administrative Tax Code Rule 3.295 requires all studies of this type to be balanced with a one-year history in order to determine if they are biased or seasonal.
If you are interested in learning more about a predominant use study in Texas, we are here to assist at B. Riley Financial, Inc. For more details, visit us now.