Client in Newark makes plastic components. PSE&G has been charging 6.625% sales tax on electricity for 4 years. They have Form ST-4 manufacturing exemption certificate on file for other purchases but never applied to utilities. NJ statute 54:32B-8.13 clearly exempts energy used in production. Anyone dealt with PSE&G on this before?
PSE&G charging NJ manufacturing client sales tax - Form ST-4 exemption
PSE&G is usually pretty good about honoring exemptions once you send them the ST-4. File a refund claim with NJ Division of Taxation for past payments. Should get 3-year lookback. We've recovered $45K+ on similar cases.
Make sure the certificate specifically lists "energy" or "electricity" in the exempt items section. Some old ST-4 forms only covered tangible goods. If so, file amended certificate first.
Also check if they're paying sales tax on natural gas. Same exemption applies. Could double the recovery.
New Jersey manufacturing exemptions are solid when properly documented. The key is ensuring the ST-4 covers utilities and that the majority of energy use is in actual production processes, not office/warehouse space.