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. For example, the qualifying electricity must be separately metered because electricity used in the business for general operations is not exempt. This exemption is set to expire on sales made after December 31, 2010. (House Bill 2518, July 1, 2004.)

Posted on May 15, 2004