501(c)(3) client has been paying sales tax on their electric bill for 3+ years despite having a valid exemption certificate on file. Utility is saying they'll issue a refund for the last 12 months only because of their "internal policy." State statute of limitations is 4 years. How do you force the full refund?
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Client exempt from sales tax but utility billed it anyway — 3 years back
Utility's "internal policy" doesn't override state law. File a formal complaint with your state PUC — cite the statute, attach the exemption certificate with the original filing date, and demand full refund to that date. I've done this 4 times. 3 out of 4 the utility caved before the PUC ruled.
What Nicole said. Also copy the state Department of Revenue on the complaint — sales tax collected in error is technically owed back to the state, which means the utility has dual exposure. They usually process quickly once DOR is involved.
The Ohio CAT tax situation has caught a few of my clients. It's not a sales tax but some utilities were treating it like one on commercial accounts. Worth checking.