SM Engineering is grateful to have served steering components manufacturer Lares Corporation for more than a decade. When we first started working with Lares, we secured the manufacturer a sizeable refund on their utility bills. After more than ten years, Lares thought it could save even more money by giving their sales tax exemptions another look.
The Problem: Were Expanded Operations Leaving Money on the Table?
Since our partnership began in 2004, Lares had expanded their manufacturing operations in the Twin Cities metro area. With the expansion came an increase in utility use. After a few years, Lares Corporation realized they should reevaluate their utility bill sales tax exemptions.
The Solution: SM Engineering Completes a Predominant Use Study
Lares scheduled a predominant use study with SM Engineering. Our engineers toured the manufacturer’s facility. They determined which pieces of equipment were connected to each of their three electrical meters. Then, the SM Engineering team put together a detailed report that outlined the exempt and non-exempt usage amounts for those utilities and compared it to what Lares was currently claiming.
The Results: Three Exemptions on Three Meters Saves Lares Thousands
After our predominant use study, we found Lares needed to update the exemptions on all three of their electrical meters. With SM Engineering’s help, Lares is now claiming three different exemption percentages on their utility accounts and is no longer worried about facing penalties in the future. As a result, the manufacturer will continue to save thousands annually.
Lares Corporation was extremely satisfied with SM Engineering’s level of professional knowledge, as well as our ability to deliver the results we promised.
How might your recent expansion affect your sales tax exemptions? Contact SM Engineering to schedule your predominant use study today.
