Hello! I'm new to utility auditing and have a question about sales tax exemptions. Working with a manufacturing client in Cincinnati on Duke Energy Ohio. They claim they should be exempt from sales tax on their electric bills due to manufacturing status, but Duke is still charging it. The monthly tax is around $2,400. What documentation do I need to prove the exemption? The client has been paying this for 3 years - potential refund of $86K.
Sales Tax Exemption Questions for Manufacturing in Ohio
Welcome! Ohio manufacturing exemption requires Form STEC-E filed with both Duke and the Ohio Department of Taxation. The client needs to provide their manufacturing tax exemption certificate number. Duke should have this on file, but sometimes it gets lost in their system during account transfers or system upgrades. Check if they've had any recent account changes.
Dana's right about the STEC-E form. Also check if your client qualifies under Ohio Revised Code 5739.01(YY) - some mixed-use facilities only get partial exemption. I'm in Dayton and see this issue frequently. The 3-year lookback should be viable for refund if they have proper documentation. Duke Ohio is usually cooperative once you provide the right paperwork.