The Florida Department of Revenue determined that a Florida utility was required to collect sales and use tax from nonresidential customers and gross receipts tax from residential customers for optional facilities that were available for an extra charge.
New York finds charges for utilities incorporated as “”rent”” not taxable.
In New York, two related manufacturing companies with common ownership operate their businesses in a shared location. One company acts as landlord while the other company pays monthly rent for usage of the facilities. Electricity usage is not metered separately;…
Texas requires predominant use study for exemption.
The Texas Comptroller of Public Accounts discussed the applicability of the Texas exemption of sales and use tax on gas and electricity used for commercial purposes. The utility exemption can only be claimed after the taxpayer completes a predominant use…
Indiana airplane merchant protests imposition of both tax and penalty.
In Indiana, a corporation was found liable for sales tax on the purchase of an airplane that were later leased or rented to the public.
New York Exempts Aircraft Parts and Services.
Under New York’s new budget package, maintenance and other services performed on aircraft will be exempt for sales and use tax. Tangible personal property purchased for and used in these services will also be exempt from sales and use tax…
New York Exemptions on Vessels Providing Local Transit.
Under New York’s new budget package, the sale and maintenance of water vessels are exempt as long as they have seating of 20 passengers or more and are used for public transit. The provision includes exemptions on parts, equipment, lubricants,…
Pennsylvania nonprofit electric cooperative corporations do not owe tax under the Pennsylvania Public Utility Realty Tax Act (PURTA).
The Pennsylvania Commonwealth Court reversed the decision made by the Pennsylvania Board of Finance and Revenue that these nonprofit electric cooperative corporations were subject to PURTA. A key phrase in PURTA reads, “furnishing public utility service.” Despite multiple technical issues…
Washington conforms its definition of tangible personal property to SSTP provisions but elects to exempt steam and electricity.
In an effort to comply with the provisions of the national Streamlined Sales and Use Tax Agreement, Washington has modified its definition of tangible personal property to include electricity and steam. The sale of electricity and steam were not subject…
Connecticut has extended the utilities tax exemption on certain fuels.
Income earned from the sale of natural gas or propane when sold to be used as a motor vehicle fuel is now exempt for sales.
New York rules that the utilities tax imposed is a tax on a seller’s gross receipts.
New York makes it clear in a recent advisory opinion that the utilities tax imposed under Sec. 186-a is a tax on a seller’s gross receipts without a deduction for tax passed through to the purchasing vendor. Sec. 186 allows…
Texas contractor responsible for taxes.
In Texas, it was found under audit that a lump-sum contractor owed sales tax on purchases it made to complete a contract to install a heating and cooling system for an exempt utility. The lump-sum contractor asserted that is relied…
Sales of electricity to a chlor-alkali or sodium chlorate electrolytic processing business used directly in the electrolytic process are tax exempt in Washington effective July 1, 2004.
In order for the exemption to be allowed the utility company must reduce the total charges for the electricity by an amount equal to the amount of the exemption. Other requirements must be met for the exemption to be allowed.…
Washington has extended the period in which rural electric utility companies can take a credit for contributions made to an electric utility rural economic development revolving fund.
The previous ending date for this credit was December 31, 2005 and it has now been extended to June 30, 2011. The credit is for 50% of the contributions made by the utility company to the electric utility rural economic…
Kansas has released an opinion letter discussing utility exemptions within the state.
The document makes it clear that electricity, water, natural gas, and other fuels that are provided to residential customers for noncommercial use are only subject to local sales tax and not state sales tax.
Certain sales of fuel and electricity will be tax exempt for manufacturers in Wisconsin.
Effective 1/1/2006, fuel and electricity consumed in manufacturing tangible personal property will be exempt.
Electricity purchased for residential use is tax exempt in Florida.
A customer who uses electricity strictly for residential purposes can seek a refund from their utility provider if they have been paying sales taxes on their purchases if specified requirements are satisfied. (Technical Assistance Advisement, No. 03A-053, November 10, 2003.)
Sales of utility services are exempt to qualifying nonprofit facilities in Kansas.
The sale of natural gas, electricity, heat, and water to a nonprofit nursing home or other nonprofit housing facility is exempt from Kansas and local retailers’ sales tax as long as the facility holds a qualified property tax exemption issued…
Illinois power plants denied use tax pollution control facility exemption.
An Illinois utility company operating two coal fired power plants was denied an Illinois use tax pollution control facility exemption.
Louisiana gas obtained at no cost.
A company in Louisiana received gas to be used in compression at no cost, as was expressed by contract.
Fabric processing exempt in Texas.
The method by which a fabric company transformed finished second quality fabric, purchased from fabric mills, into first quality fabric constituted processing rather than remodeling and, thus the electricity used at its facility, of which more than 50% was consumed…