Many businesses are looking for ways to reduce their operating costs and increase their profits. By completing a predominant use study in Missouri, you may find out you qualify for a sales tax exemption on a portion of your utility bills. The following will help you determine if you need to schedule one of these studies.
Qualifying Industries
Not all companies qualify for a sales tax exemption on their utility costs. It all depends on what your business does and what products and services you offer to your customers. Some of the common industries that could benefit from a predominant use study in Missouri include agriculture, assisted living facilities, manufacturing, mining, housing complexes, fabrication, food processing, hotels, and more. If you’re not sure if you might qualify, talking to a company that performs these studies can help.
When Should You Get One
Some companies struggle to determine when they should schedule a predominant use study in Missouri. If you aren’t already taking advantage of the tax exemption for utilities used by qualifying equipment, you could benefit from scheduling a study. During the study, they will determine if your company qualifies and then calculate the percentage of your sales tax you could deduct from your monthly costs. If you previously had a study done, you will need to renew it regularly to maintain your exempt status.
What Is It Based On?
During your predominant use study in Missouri, an experienced team will calculate the percentage of your overall energy use that applies to qualifying equipment you use in your business. The square footage of your property may also play a role depending on your industry. The utility study company will know the best way to calculate your tax exemption to ensure you get all the exemptions you deserve.
If you are interested in getting a predominant use study in Missouri, visit the B. Riley Financial website to schedule an appointment.
