The Problem: Leaving Money on the Table
During a routine sales tax audit, a Minnesota State auditor discovered that the dry cleaning company was not claiming a sales tax exemption on their utility bills that they were eligible for. The auditor recommended the company contact SM Engineering to complete a predominant use study of their utility use to determine how much the company could save annually.
The Solution: SM Engineering Completes a Predominant Use Study
The company called us to schedule their predominant use study. Our team of engineers toured the dry cleaner’s facility and gathered data from their natural gas, electricity, and water usages. Then, taking into consideration the environment required to perform the company’s operations, the SM Engineering team put together a detailed report that outlined the exempt and non-exempt usage amounts for those each of those utilities.
The Results: Thousands of Dollars in Refunds and Savings
As a result of our predominant use study, the dry cleaning company was able to place the sales tax exemptions on their utility bills. Not only did the dry cleaning company receive more than $10,000 in sales tax refunds, it reduced its annual bill by $2,300.
Wondering if you could be saving thousands a year on your utility bills? Contact SM Engineering to schedule your predominant use study today.
