Small office building in Allentown on PPL Electric. Client is a non-profit organization but they're paying sales tax on electricity. Pennsylvania exempts qualifying non-profits from sales tax on utilities.
PPL small office building tax exemption
Need to file PA Form REV-72 with the Department of Revenue. Once approved, provide exemption certificate to PPL. They should honor it going forward and may provide limited refund.
Make sure the non-profit actually qualifies. Has to be 501(c)(3) and meet specific Pennsylvania requirements. Not all non-profits get utility tax exemption.
Client confirmed 501(c)(3) status. Filed REV-72 in August. Just received approval letter from PA Revenue. PPL processed exemption and provided 6-month refund of $840.
Six months is typical for PA utility tax exemption refunds. Going forward savings should be about $140/month for that size account.
Exactly right. Monthly sales tax was running $135-145. Clean win for the client.
Non-profit utility tax exemptions are frequently overlooked. Always verify tax-exempt status and check if exemption certificates are on file with all utilities.