Just completed manufacturing exemption case with LG&E in Louisville. Client makes automotive parts, has been paying 6% Kentucky sales tax on electric bills for 5 years. Filed Form 51A105 manufacturing exemption certificate. LG&E processed exemption and issued refund check for $67,890 covering 3-year lookback period. Very smooth process.
Kentucky manufacturing exemption success - LG&E
LG&E has always been good to work with on exemptions. Did they require any supporting documentation beyond the Form 51A105?
They requested copy of Kentucky manufacturing license and brief description of production process. Whole approval took about 6 weeks from submission.
Similar experience with East Kentucky Power. Kentucky Revised Statutes 139.480 is pretty clear on manufacturing exemptions. Most utilities honor properly completed applications.
Great result Fred. Manufacturing exemptions are often the biggest dollar findings in Tennessee and Kentucky. KRS 139.480 saves a lot of manufacturers money once properly applied.