BFC Consulting Group
The State of Texas allows Manufacturers to become exempt from paying high sales tax on energy. In order to achieve the exemption the manufacturing company must have a Pedominant Use Study in their files. Eventhough your company is not paying tax, it is liable for the sales tax if a legal predominant study is not in your file.
In order to be exempt form sales taxes on your energy vendors invoices, a Professional Engineer, recognized as such by the State of Texas, must perform a study measuring the energy consumption in your manufacturing environment. In general, the results of the study must be balanced against your electric and gas meters to insure accuracy. if over 50% of the energy is used in manufacturing, the facility becomes exempt from the sales tax. If the study is called into question by the State, back taxes and penalties may be accessed. Make sure the company that does the study has been around a while and will guarantee to defend their study in an audit. If the company is not there, you are on the hook.
In addition, if you decide to change vendors, make sure the study will be updated at no additional charge if your process has not changed.
The law changed in April of 2005 so any study prior to that date is obsolete.
You can read the law at http://predominantusestudy.net/Rule_3.295.html.
In some instances it is possible to obtain a refund for the taxes paid. If we can assist you in this area, please contact us.
We are not interested in wasting your time so we ask you to fill out the attached form, we will quickly review the basic information and contact you to discuss how we can best proceed.
Your total time to get the process going will be to submit required power and gas bills and answer a few additional questions. We will handle all the paper work, provide a certified study, obtain rebated tax where available, and be willing and able to defend the study to government authorities if necessary.
Our associates, Llewellyn Corporation of America, LLC., with over 25 years experience in the Predominant Use Study and Sales Tax arena, will provide this service. Please fill out the brief information form and fax it to us so we can get you off the tax rolls as soon as possible. Information Form.