Approach

A multi-location (11 sites) casual dining restaurant group was operating across 2 states and had large commercial kitchens, refrigeration systems, and extended hours of operation.  Their utility usage, particularly natural gas and electricity, was a significant monthly cost.

Align was engaged to complete a utility sales tax review for all locations. Our goal was to determine where exemption opportunities existed under each state's tax code and recover past overpayments where possible.

Findings

Utility Meter and Usage Review

We analyzed electric and billing data across all locations, identifying meters tied directly to kitchen and prep operations. Commercial kitchen utility usage accounted for over 70% of total energy usage in most locations.

On-Site Assessment

We worked with general managers during our on-site engineering studies to properly document energy use for qualifying activities.  Properly documenting how energy is used and tying that to qualifying activities is essential to secure the exemption and defend it if audited - this is where Align's nearly 20 years of experience in utility sales tax pays off!

Exemption Certification and Refund Filing

We filed exemption certificates and submitted claims for retrospective sales tax refunds, and several locations qualified for full or partial exemptions.