SIC code change saves pharma plant thousands

Started by Gil S. — 2 years ago — 1 views
Quick win to share - pharmaceutical manufacturing plant was classified under wrong SIC code with Duke Energy. They had them as 2834 (pharmaceutical preparations) when they should be 2833 (medicinal chemicals). Different tax exemption rates saved them $2,800 monthly on their Schedule LGS bill. Always worth double-checking classifications!
Nice catch Gil! SIC/NAICS codes are so overlooked but can make a huge difference on manufacturing accounts. I had a similar situation with a food processor - wrong classification was costing them manufacturing tax exemptions. Took 8 months to get Duke to reclassify but recovered $18K in the process.
This is exactly why I always request the account setup documentation on new manufacturing clients. Utilities get the classification wrong more often than you'd think. Chemical companies especially since there are so many subcategories with different exemption rules.