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.
Wyoming Extends Exemption for Renewable Electricity Generating Equipment
Wyoming has enacted legislation to delay the repeal date of sales and use tax exemptions on equipment used to generate electricity from “renewable resources.” The State’s definition of renewable resources includes wind generation, solar, biomass, landfill gas, hydro, hydrogen and…
North Dakota Amends Coal Conversion Facility Provisions
North Dakota has amended the definitions of “power plant” and “repowering” to include plants that process or convert coal. The definitions previously only addressed plants that processed or converted lignite. The legislation also provides for an exemption for the sale…
New Mexico Enacts Advanced Energy Credit
New Mexico has enacted legislation, effective July 1, 2007, creating the Advanced Energy Tax Credit which is available against the gross receipts tax, the compensating tax or the withholding tax. The credit may be claimed by a taxpayer who holds…
Maine Amends Interstate Commerce Rule
Maine has amended a sales tax rule addressing vehicles used in interstate commerce to reflect statutory changes. The amended rule now states that “a vehicle, railroad rolling stock, aircraft or watercraft” must be placed into interstate use within 30 days…
Wisconsin Exemption for Fuel and Electricity Used In Manufacturing
Effective January 1, 2006, a Wisconsin sales and use tax exemption applies to fuel and electricity consumed to operate machines and equipment used directly in the manufacturing process. The exempt amount should be calculated on a meter-by-meter basis in a…
New York Exemption for Utilities and Utility Services
New York recently announced a new exemption from New York State and local sales and use tax. The exemption, effective March 1, 2006, applies to the sale of utilities and utility services, provided that the services are: (1) metered; (2)…
Louisiana Rate Reductions for Natural Gas and Electricity
Louisiana announced a reduction in the sales and use tax rate for purchases of natural gas and electricity for non-residential consumers. Effective January 1, 2006 and continuing through June 30, 2009, the rate is reduced from 3.8% to 3.3%. Other…
Michigan Announces Change In Prepaid Gasoline Sales Tax Rate
The State of Michigan announced a change in the prepaid gasoline sales tax rate. Effective May 1, 2006, the new rate will be 12.7 cents per gallon. The Department is required to establish a new rate every six months unless…
New York Electricity Used to Repair, Maintain Aircraft Exempt.
An airline was granted a commercial aircraft maintenance exemption from New York sales and use tax for its purchase of electricity used solely in repairing and maintaining commercial aircraft at its New York maintenance hangers. The airline argued that it…
Illinois Gasification Facilities May Be Eligible for Credits, Exemptions.
Under the Federal Enterprise Zone Act, certain new gasification facilities now qualify as a \”high impact business.\”
Mississippi Rules on Utilities Updated
The Mississippi sales tax rule on electric power, light, gas, and other fuel distributors has been updated to require that manufacturers holding a valid direct pay permit must provide the pay permit to its utility providers for all utility purchases.
Florida States Facilities Charges Are Subject to Tax
In a Technical Assistance Advisement, the State of Florida determined that facilities charges imposed by a utility were subject to sales tax when billed to nonresidential customers requiring enhanced electricity services.
Louisiana Exempts Rail Rolling Stock.
The state of Louisiana will no longer tax sales or leases of rail rolling stock used in either intrastate or interstate commerce.
Massachusetts Discusses Tax Treatment of Water Purification Plant
The Massachusetts DOR has issued a letter ruling outlining certain sales and use tax exemptions afforded to a water purification plant.
Pennsylvania Issues Letter Ruling Discussing Purchases of Natural Gas and Machinery Used in Electricity Generation.
The Pennsylvania Department of Revenue recently issued a Legal Letter Ruling stating that a taxpayer’s purchase of natural gas, machinery, equipment, parts, and supplies qualifies for the manufacturing exclusion when used “directly and predominantly” in the production of electricity at…
North Dakota Exempts Environmental Upgrade Equipment.
In an amendment to current North Dakota law, environmental upgrade equipment used in power plants or for repowering existing power plants that began construction after June 30, 1991 is exempt from sales and use tax. An “environmental upgrade” is defined…
Mississippi Authorizes Direct Pay Permits for Utilities
The permits will allow public utility companies to relieve their vendors from their obligation to collect and remit sales tax on the utility\’s taxable purchases.
Ohio Denies Air Transportation Company the Public Utility Exemption.
In a recent Ohio Board of Tax Appeals decision, it was determined that an air transportation company was not able to benefit from the public utility exemption. The taxpayer claimed that it was a common carrier providing services to the…