Working with two manufacturing clients in Phoenix area. One served by Salt River Project, other by Arizona Public Service. Both have identical operations and valid Arizona Transaction Privilege Tax exemption certificates (Form 5000). SRP isn't charging TPT, but APS continues charging despite certificate being on file for 2 years. Arizona Revised Statutes 42-5061 should apply to both utilities equally. Why the different treatment?
Arizona manufacturing exemption - Salt River Project vs APS differences
SRP being a public utility tends to be more familiar with manufacturing exemptions. APS sometimes requires additional documentation. Did you submit Arizona Form 5000A specifically for manufacturing?
Yes, Form 5000A was filed along with manufacturing license copy. APS acknowledged receipt but said they need to "verify manufacturing operations" before applying exemption. Been waiting 4 months for this verification.
APS can be slow on exemption processing. I usually escalate to their commercial tax department after 90 days. Ask for written status update and estimated completion date.
Escalated to APS commercial tax dept. They finally approved exemption and processed 24-month refund of $19,400. Apparently the delay was due to "staffing changes" in their exemption review department.
Similar experience with APS last year. They seem understaffed for exemption processing. SRP and Tucson Electric are much more efficient.
Good to know about APS delays. Will factor that into client expectations when filing Arizona manufacturing exemptions.
Arizona manufacturing exemptions are solid when properly documented, but utility processing times vary widely. Always follow up proactively rather than assuming no news is good news.