Started going after church accounts in the OKC area. Churches in Oklahoma are exempt from sales tax on utilities under Title 68 Section 1356. Out of 8 churches I have looked at so far, 5 were paying full sales tax because they never filed an exemption certificate with OG&E or PSO. The bills are not huge individually — most run $1,500 to $4,000 a month — but the sales tax adds up over years. Biggest refund so far is $11,200 on a large Baptist church that had been paying tax since 2014. The pastor was thrilled. Churches talk to each other so I am getting referrals left and right.
Church accounts and sales tax — easy money
Smart niche. I have done a handful of church audits in Georgia and the exemption process is straightforward. The challenge is the contingency fee conversation — some church boards are uncomfortable with a percentage-based fee. I have had better luck with flat fee arrangements for churches. Something like $500 to do the audit and file the exemption paperwork.
Good point Randy. I had one church that also owns a small strip center next door and the strip center meter was NOT exempt even though the church owns it. Had to be upfront about that with the pastor.