Sales Tax Review

"One of my favorite things about working at 5 is that our team genuinely cares about every aspect of a client’s energy needs. Often while our team is engaged on a strategic procurement process, we identify additional opportunities to reduce costs, ensuring that that clients are being billed for the correct rate and the appropriate sales tax."

- Tommy Richardson, Utility Infielder, 5

5’s proven process always begins with a review of a company’s data to understand how each client uses electricity and natural gas. The process continues through a series of discovery sessions in which 5 uncovers more about the client’s goals and operations, including simple but often overlooked details like the client’s tax exemption status. States, and some utilities, have specialized tax laws and incentives that exempt nonprofits and other businesses from paying sales tax on their utility bills. Through the process of a sales tax review, clients can often avoid future sales tax while also recovering significant refunds for prior years as well.

Understanding each client’s tax status and the kinds of rebates and incentives that are available in each area is a fundamental part of 5’s client discovery process. For example, in Texas (and roughly 30 other states), clients using more than 50% of their power consumption for a qualified manufacturing process may be eligible for tax savings using a Predominant Use Study. Similarly, in New Jersey, manufacturers in designated Urban Enterprise Zones (UEZs) can claim sales tax exemptions on all electricity and natural gas bills. In New York City, non-profits can obtain a rebate on Gross Receipt Taxes (GRT) that are paid on utility bills. These are just a couple of examples of how 5 can help clients cut costs and save money on utility expenses.

Contact Us to learn more about how 5 can review the sales tax status of your business as part of our comprehensive energy advisory package.

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