Utilities & Transportation

Missouri Enacts Sales Tax Exemption for Utility Infrastructure and Electricity Generation

Missouri has enacted Senate Bill 872, bringing significant changes to the state\’s sales tax regulations for the utility sector.

New Mexico To Introduce Deductions for Healthcare, Electricity, and More Effective July 1, 2024

New Mexico has enacted legislation to provide new deductions from the state\’s Gross Receipts Tax for various industries, with most coming into effect July 1, 2024, and remaining in effect until July 1, 2034.

California Issues Guidance on Claiming Partial Exemption on Diesel Fuel

The California Department of Tax and Fee Administration (CDTFA) has issued guidance to registered fuel retailers who may not have properly claimed the California partial sales and use tax exemption for diesel fuel.

Utah Legislation Updates Peer-to-Peer Car-Sharing Regulations

A recently enacted Utah bill changes how motor vehicles involved in car-sharing platforms are taxed.

Tennessee Updates Definition of Industrial Machinery for Sales Tax Exemption

Effective July 1, 2023, Tennessee has enacted legislation that amends the state’s definition of “industrial machinery” for purposes of the state’s industrial machinery exemption.

Washington Finds Utilities Meter Data Management Service to be Exempt

A Washington appellate court has ruled against the state Department of Revenue and a lower court\’s summary judgement, and ruled in favor of a company that collects and transmits data for Washington-based power companies.

Federal Contractor Required to Pay Washington Use Tax on Design and Engineering Costs Associated with Government Contract

The Court of Appeals of Washington determined that Alstom Power Inc. was required to pay Washington use tax for a turbine rehabilitation project.

Virginia Extends Sales Tax Exemptions for Natural Gas and Oil

Virginia has extended its exemption for raw materials, fuel, power, supplies, and machinery used in the drilling, extrusion, or processing of natural gas and oil, and items related to the reclamation of well areas, until July 1, 2024.

Missouri Issues Letter Ruling on Taxability of Utilities Sold to Hotels

The Missouri Department of Revenue (DOR) issued a letter ruling stating that a utility company should not charge sales tax to hotels, motels and other transient accommodation establishments for sales of utilities.

South Carolina Updates Guidance on Taxability of Fuel Surcharges

The South Carolina Department of Revenue (DOR) has updated its guidance on the taxability of fuel surcharges charged by retailers delivering tangible personal property.

Washington Enforces Collection of Sales Tax for Renewable Energy Equipment Sales

Washington Department of Revenue held a taxpayer accountable for collecting sales tax on their retail sales to a renewable energy company.

Alabama Blocks City Tax on Railway Fuel Purchases

BNSF Railway Company is receiving a $1.25 million diesel fuel tax refund from the City of Birmingham, Alabama.

Minnesota Updates Guidance on Exemptions for Utilities used in Production

Minnesota has updated a sales tax fact sheet that provides guidance regarding exemptions for utilities used in production to include information on utility refunds for landlords.

Tennessee Issues Guidance on Exemption for Agricultural Water

Effective July 1, 2019, Tennessee enacted a sales and use tax exemption for water purchased by a qualified farmer or nursery operator.

Electricity to Power HVAC Units for Telecommunications Equipment Exempt in Kansas

Kansas ruled that a telecom company is exempt from sales tax on electricity used to power HVAC units which maintain a constant temperature for its equipment.

Washington Issues Guidance on Taxability of Renewable Natural Gas

Effective July 28, 2019, the production and sale of renewable natural gas is no longer subject to Washington public utility tax.

South Carolina Issues Changes to Residential Electricity and Fuel Exemption

Effective October 1, 2019, South Carolina clarified application of the sales tax exemption for electricity and other fuels used for residential purposes.

Washington Enacts Exemptions for Solar Energy Systems

Effective July 1, 2019 and January 1, 2020, Washington has enacted sales tax exemptions on the purchase and installation of qualified solar energy systems.

Processor’s Purchase of Utilities Not Exempt in Indiana

An Indiana-based processor was not entitled to an exemption on utility purchases since they were used in processes that took place outside the production process.

New York Repeals Exemption for Distribution of Gas or Electricity Purchased from Non-Vendors

Effective June 1, 2019, New York repealed its state and local sales and use tax exemption for the transportation, transmission, or distribution of gas or electricity when it is purchased from someone other than the vendor of the gas or electricity.

Massachusetts Makes Changes to Small Business Energy Exemption

Massachusetts has made changes to its procedure to qualify for the state’s small business energy sales and use tax exemption.

Utah Provides Guidance on Taxability of Sales of Electricity under Renewable Energy Contracts

Sales of electricity by a power company to a taxpayer in Ohio would be exempt as sales of electricity produced from a new alternative energy source built after January 1, 2016.

Georgia Suspends Collection of Sales Tax on Jet Fuel

Effective August 1, 2018, Georgia has suspended the collection of the state’s 4% sales and use tax on sales of jet fuel.

Waste Disposal Company Qualifies for Indiana Exemption as Public Transportation Provider

A waste disposal and recycling company’s purchase of natural gas qualified for Indiana’s public transportation exemption since the taxpayer established that it was in the business of providing public transportation.