Utilities & Transportation

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Effective June 1, 2019, New York repealed its state and local sales and use tax exemption for the transportation, transmission, or distribution of gas or electricity when it is purchased from someone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

Manufacturer Not Entitled to Exemption on Natural Gas Used for Heating Buildings in Ohio

A manufacturer was not entitled to an exemption on Ohio use tax for purchases of natural gas used to heat its buildings.

Louisiana Issues Bulletin on Business Utilities Tax Rate

Effective July 1, 2018 through June 30, 2025, the overall Louisiana sales tax rate for business utilities, will be two percent.

Iowa Issues Notice About New Water Service Excise Tax

The Iowa Department of Revenue has provided guidance regarding the state’s new Water Service Excise Tax (WET) that takes effect on July 1, 2018.

Indiana Grants Predominant Use Exemption to Utilities Purchase

A taxpayer’s purchase of electricity qualified for Indiana’s predominant use exemption because the taxpayer produced documentation showing a higher exemption rate for utility usage than originally determined by the DOR.

Fuel and Electricity Used to Operate Air Makeup Units Exempt in Wisconsin

A taxpayer’s purchase of fuel and electricity to power air makeup units in its plants was exempt from Wisconsin sales tax.

Separate Exemption Certificates Required for Multiple Locations in Tennessee

Manufacturers who wish to purchase electricity at a reduced rate or exempt from Tennessee sales and use tax must present a certificate of exemption for each manufacturing location.

North Carolina Amends Public Utility Definitions

North Carolina amended its definition of \”public utility\” and “small power producer,” effective July 27, 2017.

Kentucky Modifies Manufacturing Exemptions for Energy-Producing Fuels and Tangible Personal Property

Kentucky has enacted legislation that modifies the state’s sales and use tax manufacturing exemptions for energy-producing fuels and tangible personal property.

Illinois Issues Guidance on Applicability of Manufacturing Exemption to Commercial Printing

The Illinois Department of Revenue has issued a general information letter regarding whether commercial printing is considered “manufacturing” and if the state’s manufacturing exemption applies to electricity consumed to run printing machinery.

Illinois Appellate Court Finds Motor Fuel Tax Did Not Apply to Compressed Natural Gas

The Illinois First District Appellate Court reversed an earlier order by the Illinois Independent Tax Tribunal regarding motor fuel tax on compressed natural gas.

Colorado Updates Publication on Sales and Use Tax Exemption for Residential Energy Usage

Colorado updated its publication regarding the state’s sales and use tax exemption on residential energy usage, stating the exemption applies to all purchases of propane and wood pellets used to heat a home or prepare food.

Arizona Amends Electricity and Gas Exemption for Manufacturing and Smelting Businesses

Arizona modified the exemption criteria for the qualified manufacturing or smelting business exemption as it applies to the state’s transaction privilege and use tax deduction of electricity and natural gas sales.