It’s the letter no business owner wants to receive—notification that the State will be completing a sales tax audit. Part of that audit will be to determine if the company is eligible for the claimed sales tax exemptions on their utility bills. Every State requires a company to provide different documentation to substantiate their utility sales tax exemptions. Here’s a look at how SM Engineering helped a Minneapolis, Minnesota, company provide this information.

The Problem: Utility Bill Tax Exemption under Review

APG Cash Drawer had claimed an exemption on its utility bills that had come under review with the State of Minnesota. In order to resolve the issue quickly, APG needed to provide proof that they were indeed eligible for the claimed levels of exemption. After receiving a recommendation from a colleague, APG leadership reached out to SM Engineering to schedule a predominant use study.

The Solution: SM Engineering Completes a Predominant Use Study

SM Engineering’s first step in the predominant use study for APG Cash Drawer was a tour of their Minneapolis facility to gather information regarding their operation. Our engineer took note of their natural gas, electricity, and water usages. Then, our team put together detailed reports that calculated the maximum exemptions allowed by the State. We provided this report to APG so they could prove their exemptions to the State.

The Results: Thousands of Dollars in Savings

As a result of SM Engineering’s predominant use study, APG Cash Drawer provided documentation to the State proving they were eligible for their utility sales tax exemption. With our help, they continue to save thousands of dollars every year. “SM did a great job in completing the study quickly and at a high level. The documentation provided clearly laid out the results of the analysis and satisfied the requirements of the MN Sales Tax Auditor.” APG’s controller reports. “I would definitely recommend SM Engineering to others.”

Wondering if you could be saving thousands a year on your utility bills? Contact SM Engineering to schedule your predominant use study today.

Author Satya Garg

Author Satya Garg

Satya Garg is the founder of SM Engineering. He is a registered Professional Mechanical and Electrical Engineer in Minnesota with over 50 years of industry experience. Through his many years of working with grocery stores, manufacturing plants, large office buildings and nursing facilities, he has become an expert in reducing utility costs without operation changes.