As with all other states, Texas sets the rules for utility sales tax exemptions for qualifying businesses and other types of properties. These utility sales tax exemptions require a predominant use study to verify the use of the utility for qualified applications. Each meter is independently analyzed, with the business able to claim the reduction in sales tax and to receive a refund for qualifying electrical and natural gas usage for up to the last 48 months.
A certified engineer must complete a predominant use study in Texas. This is not required in all states, but it is required in the Lone Star State. In addition, documentation is submitted to verify the information in the report, with experience in working with the Texas Comptroller of Public Accounts a significant benefit.
Qualifying Business
Businesses that can opt to complete a predominant use study include those engaged in manufacturing, fabricating, and processing, including custom manufacturing, and extractors or transporters of mining operations.
The state also allows homeowner associations, exempt organizations, and residential apartments to reduce their utility sales tax exemptions through the process. The method to complete the study is different based on the various types of qualifying businesses.
What to Expect
During the predominant use study, the business can operate as normal. The engineers will verify equipment, measure consumption, compile information, and assess the usage per meter for qualifying equipment on an annual basis. All information is reported and submitted by the company completing the study, eliminating any additional work for the business.
To order a predominant use study for your Texas business, talk to the experts at Business Name. More details can be found at Website URL.
