As a qualifying business, a Predominant Use Study in Missouri allows for a percentage of per-meter utility sales tax exemptions. The study is a highly detailed process that evaluates the utility usage by each device drawing from the meter.
Devices are either qualifying or non-qualifying for the exemption. Based on the Predominant Use Study findings, the business is entitled to a refund for past exempt payments and future utility tax exemptions.
Is a Study Required?
A Predominant Use Study in Missouri is required for any business claiming the utility sales tax exemption. The data collection and analysis are completed on a per-meter basis. Therefore, a business with multiple meters will receive the applicable refund and a current and future utility sales tax exemption based on the results from each meter.
How Long is the Process?
Hiring a company with engineers and financial business experts that specialize in these studies is the most effective way to shorten the process. Experienced companies can typically complete the study without any need for downtime across the business.
When Will the Business Receive the Refund and Exemption?
Once the study and application are approved, the sales tax exemption is typically in place in one billing cycle. This will remain in place unless the business makes changes to the processes or adds to the use of a utility. Any applicable refund for qualifying utility sales taxes paid in the past usually takes a month or more to process.
For questions about a Predominant Use Study in Missouri, contact the team at Business Name. Details on all of our services can be found online at Website URL.
