Approach

A multi-generational, family-owned farming and dairy enterprise operating across the Midwest, with thousands of acres under cultivation and a large-scale dairy facility consumes substantial amounts of electricity and natural gas to support its operations.

Align conducted a comprehensive utility sales tax review and identified which utility meters and usage segments qualified for sales tax exemptions.  We prepared and submitted the necessary exemption certificates and usage studies and filed for retroactive refunds for previously paid sales tax.

Findings

Utility Consumption

Over 80% of utility consumption was directly tied to exempt activities, including milking system operations, milk cooling and refrigeration, crop irrigation, grain drying, and ventilation systems.

Sales Tax Rates

The client had been paying full sales tax rates on all utility bills due to a lack of documented exemptions.

Newly Acquired and Expanded Properties

Several utility accounts had never been reviewed for exemption status, including newly acquired and expanded facilities.