Utility Study – Transaction Tax

Sales and use taxes paid on utility bills can be of extreme significance to a manufacturer’s bottom line. Today, with energy costs higher than ever, it is important to minimize the taxes due on such purchases. If your company is currently paying sales and use tax on utility expenditures, you may be able to reduce or eliminate your tax burden.

Although your company may have held a utility study in the past which resulted in lower tax on a percentage of your bill, the exemption usage may have increased over time since the study. If your organization has experienced any changes in Federal Employer Number or State Identification Number due to mergers, acquisitions, etc., your exempt status may also have changed.

DMA offers detailed utility studies designed to capture the true taxable and exempt utility consumption.

Our approach to each engagement involves the following broad phases:

  • Obtain information about the client’s business operations

  • Tour the facilities to identify every piece of equipment that draws energy, documenting the specifications for said equipment, and then calculating the actual energy usage and its corresponding taxability

  • Review current and past utility bills to determine if any tax overpayments exist

  • Present a comprehensive report of DMA’s analysis, findings, and recommendations

  • Obtain client approval to submit documentation for exemption of future utility purchases and to pursue any available refunds on past overpayments

  • Prepare and submit the appropriate documentation for exemption and/or refund with the utility companies and proper taxing jurisdictions (required state forms, detailed schedules, invoice copies, plant diagrams, and citation of appropriate sales/use tax laws and regulations)

  • Monitor status of utility exemption and refund claims filed with utility vendors and/or state auditors

  • Provide client with summary of final tax savings

   Learn How DMA Saved Siemens Over $340K with a Utility Study