Utility Sales Tax Refunds

Companies that qualify for an exemption may also qualify for a refund. USTC has recovered millions of dollars for clients that span a wide range of industries including manufacturing, agriculture, research & development, food service, residential facilities and many more.

How Much Will My Sales Tax Refund Be?

Several factors will affect your refund amount. Here are the most common:

• Statute of Limitations. Each state sets a limit on the number of months of utility sales tax that can be recovered. This ranges from 12 to 48 months, depending on the state.

• Exempt Percentage. Once a company has met the state’s requirements, they are awarded with a percentage of exemption. In general, this is tied directly to the results of the utility study.

• Previous Exemptions. If a facility was exempt in the past (e.g. with a previous utility supplier), it could affect how many months of recovery are available.

• Location History. If your facility has been up and running for a short period of time, it could affect how many months of recovery are available.

• Change of Ownership. If your business changed ownership recently, it may be necessary to file a separate refund claim to recover the sales tax paid by the previous owner. 

What is the Statute of Limitations for my State?

Generally, a claim for refund must be made within a certain number of months from the date on which the tax was due and payable. Below is a list of states that offer utility sales tax refunds and their respective statute of limitations.