Illinois has enacted legislation effective June 1, 2014 that amends the sales and use tax treatment of electricity, natural or artificial gas and water.
Washington Addresses Taxation of Compressed and Liquefied Natural Gas used for Transportation
Washington has passed legislation that provides an exemption from public utility tax (PUT) for sales by gas distributors of compressed natural gas or liquefied natural gas that is to be sold or used as a transportation fuel. Additionally, business and…
Electricity & Natural Gas Sold to Grocery Stores for Bakery Department Equipment Not Exempt in Missouri
The Missouri Supreme Court has held that a utility company was properly denied a refund for Missouri sales tax paid on electricity and natural gas provided to grocery stores for…
Nebraska Amends C-Bed Project Exemption
Nebraska has amended the definition of a community-based energy development (C-BED) project for purposes of the state’s sales and use tax exemption for personal property used in such projects. The amended definition states that a C-BED project means a new…
District of Columbia Enacts Restaurant Utilities Exemption
District of Columbia Mayor Vincent C. Gray has signed the Fiscal Year 2014 Budget Support Emergency Act of 2013, enacting a restaurant utilities exemption.
Natural Gas Used in Ovens Qualifies for Manufacturing Exemption in Tennessee
Natural gas that is used in metered ovens at a food production facility producing food for resale qualifies for the sales and use tax manufacturing exemption on gas used in a manufacturing process in Tennessee. The natural gas is used…
Kentucky Manufacturer Denied Partial Energy Exemptions
A Kentucky court ruling was upheld that denied a manufacturer refunds of sales and use tax and utilities gross receipts license tax that the manufacturer sought based on energy-related partial exemptions. The exemptions were the partial exemption from sales and…
Texas Power Plant’s Purchase of Equipment Not Sales Tax Exempt
A Texas power plant operator’s purchases of turbines, generators, and accessories used to generate electricity did not qualify for the manufacturing exemption from sales and use tax because the operator was unable to prove that the machinery retained its identity…
Natural Gas Fixed Charges Subject to South Carolina Tax
The South Carolina Department of Revenue has issued a letter ruling advising that monthly fixed charges billed by a natural gas company are subject to South Carolina sales and use tax because they are part of the overall agreement for…
U.S. Supreme Court Holds That 4-R Act Challenges Can be Based on Exemptions
The U.S. Supreme Court has held that a railroad may challenge Alabama sales and use taxes that apply to rail carrier’s purchases of diesel fuel but exempt those purchases by rail competitors such as interstate motor and water carriers, under…
North Carolina Electric Membership Corporation Exempt from Sales and Use Tax
A North Carolina electric membership corporation (EMC) was granted a refund of franchise and sales and use taxes paid on sales of electricity as they were deemed exempt under a special act enacted by the North Carolina Legislature over 35…
District of Columbia Issues Emergency Act Clarifying Sales Tax Exemption on Restaurant Utilities
The District of Columbia has enacted emergency legislation amending Act 18-0645, known as the \”Processing Sales Tax Clarification Act of 2010.\”
Washington Refund Requests for Local Brokered Natural Gas Use Tax to Be Denied.
The Washington State Supreme Court overturned the Court of Appeals decision in G-P Gypsum Corp. v. Department of Revenue, and upheld the Department of Revenue’s decision that local brokered natural gas (BNG) use tax is imposed where the gas is…
Washington Amends Rule on Motor Vehicle and Special Fuels Exemption
The Washington Department of Revenue has amended its rule on motor vehicle and special fuels exemptions as they relate to public transportation benefit areas (PTBA), county owned ferries, and county ferry districts. The amendment provides exemptions from sales and use…
Maryland Expands Solar Energy Equipment Exemption
Equipment that is installed to use solar energy to generate electricity to be used in a structure, supplied to the electric grid, or to provide hot water for use in a structure is exempt from Maryland sales and use tax and property tax.
Fuel to Heat Garage Qualifies for Pennsylvania Exemption
A homeowner\’s purchase of fuel oil used to heat a detached garage that housed the homeowner\’s vehicle was exempt from Pennsylvania sales and use tax.
Missouri Utilities Used to Clean and Condition Grain Taxable
Cooperative utilities which are owned by farmers and used to clean and condition grain are subject to sales and use tax in Missouri. The utilities do not fall under the exemption ยง144.030.2(33), RSMo, which includes utilities that are used in…
Taxability of Fuel Surcharge Follows Taxability of Service or Product Sold in New Jersey
With fuel surcharges becoming more common, New Jersey has issued a notice concerning their application of sales tax. Retail sales of motor fuels are not subject to sales tax. The definition of “sales price” set forth in N.J.S.A. 54:32B-2(oo)(1) includes…
Idaho Processing Materials Used in Energy Production Exempt
Idaho HB 561 amends existing law to provide that the production exemption from sales and use tax shall be available to a business or separately operated segment of a business engaged in the business…
Clean Energy Project Electricity Exempt in Texas
Texas Governor, Rick Perry, signed into law H.B. 3732, making the sale of electricity generated by an advanced clean energy project exempt for the Texas public utility gross receipts tax.
Missouri Utilities Used to Raise and Sell Cattle Not Taxable
The Missouri Department of Revenue has issued a Letter Ruling regarding the consumption of electric utilities used to raise and sell beef cattle. Under this ruling, the non-personal amount of electricity used is not subject to Missouri sales taxes. However,…
Florida Provisions of Light Poles and Light Pole Fixtures Discussed
In response to a taxpayer\’s inquiry, the Florida Department of Revenue issued a Technical Assistance Advisement (\”TAA\”) clarifying three issues…
Kansas Amends Disaster Repair Provisions
Legislation passed in Kansas makes changes to the existing sales tax exemption for construction and restoration with respect to structures damaged or destroyed by certain disasters.
Iowa Implements Credits for Renewable Fuel
New rules passed in a series of Iowa bills provide a use tax credit for the purchase and replacement costs incurred by an electric utility transitioning to soy-based transformer fluid.