Are you taking advantage of the many state tax exemptions available for your business? A Sales and Use Tax Refund Study is a great way to be sure and generally results in cash savings.
The study involves a thorough review of your business activities and purchases to identify sales/use tax overpayments for periods already filed and open under state statute of limitations (e.g. MN 3.5 years). The review also uncovers any potential state credit and incentive programs and federal excise tax exemptions that fit your business.
Examples of qualifying exempt purchases may include:
• Computer software, hardware, and maintenance agreements
• Utilities used in manufacturing (electricity, gas, water)
• Equipment used in manufacturing, R&D, environmental control, quality control, testing, pollution control, and scrap recycling
• Expenses to repair or replace qualifying equipment
• Intra-plant transport or storage for work-in-process
• Consumables and one-time use items
• Chemicals used in production
• Foundations and special purpose buildings
• Advertising shipped out-of-state
• Real property improvements
• Interstate motor carrier
• Fuel tax credit
• Contractor services
The study provides us a better understanding of your business operations that may identify additional state and local tax saving. It also helps us understand your internal procedures, controls, and systems, so we can give recommendations on operational excellence and compliance.
The engagements are generally conducted on findings-based (contingent) fee basis. Therefore, a project engagement is low risk with unlimited benefits.
To discuss the opportunities for your business, reach out to your SDK tax person, or Lisa Hoiland, the author of this article, firstname.lastname@example.org.