Texas manufacturing exemption - CenterPoint Energy

Chemical plant in Houston getting charged Texas sales tax on natural gas used in production process. Texas Tax Code Sec. 151.318 should exempt this. CenterPoint says the meter serves both manufacturing and office areas so they're taxing the whole thing. Thoughts?

You need separate metering or a manufacturing percentage calculation. Texas allows prorating if you can document what percentage goes to exempt manufacturing vs taxable office use. Form AP-151 is what you want.

Thanks Jim. Engineering says about 85% goes to production equipment. Working with CenterPoint on the allocation method now. Should save them $2,800/month going forward.