Regional hospital in Topeka has been paying Kansas sales tax to Evergy on natural gas used for emergency generators. Hospital has nonprofit exemption for electricity but Evergy says it doesn't cover backup generation fuel. This seems wrong to me.
Kansas nonprofit hospital - Evergy sales tax on emergency generator fuel
Nonprofit exemption should cover all energy used by the exempt organization, including emergency generation. What form did they originally file?
Form ST-7 for the hospital exemption. Language says "all sales of energy to nonprofit hospitals." Emergency generators are definitely hospital use.
Contact Evergy's tax department directly. Their billing staff might not understand the scope of the exemption. Backup power is essential hospital equipment.
Emergency generator fuel is often overlooked in exemption applications. The exemption should cover all energy consumed in operating the exempt facility, including backup systems critical to operations.