Got a client that's a 501(c)(3) hospital in Newark. PSE&G has been charging them 6.625% sales tax on their electric bill for years. I thought nonprofits were exempt in NJ but can't find the right form. Anyone dealt with this?
PSE&G charging sales tax on nonprofit hospital - New Jersey exemption question
You need Form ST-5. New Jersey exempts qualified nonprofits under N.J.S.A. 54:32B-9(a). Hospital definitely qualifies. PSE&G will process it retroactively once you file.
Just did this for a church in Richmond. Dominion Energy honored the exemption back 4 years. Total refund was $24,600.
Perfect! Filed the ST-5 yesterday. PSE&G says they'll process within 30 days. Estimated refund is around $89,000 for 3 years.
Nonprofit exemptions are frequently overlooked. Always verify tax-exempt status is properly filed with the utility. Many nonprofits assume it's automatic - it's not.