2221 Justin Road • Suite 119-314 • Flower Mound, Texas 75028
Phone: 972-318-0888 • 1-877-660-0611 • Fax: 972-966-0888

Services and Information

 

PREDOMINANT USAGE STUDIES

We perform the Predominant Usage Study as required by the State of Texas under Rule 3.295 for sales tax exemption on electric and gas bills for manufacturers and other businesses which change the form of a product. It must bear the seal of a registered or accredited engineer proving to the state and utility companies through an itemized breakout that 50 percent or more of the gas or electric usage on a meter is used in the production related areas. We submit the refund request, up to the previous 48 months to the utility company or the Comptroller, who issues the refund or the credit to the account directly back to your firm. We also have the current utility company exempt the tax on future bills.  

WHEN A PREDOMINANT USAGE STUDY IS NEEDED

In order for a Predominant Usage Study to remain valid, a new study needs to be done when any of the following occur:
  1. A new account is opened
  2. A startup business opens
  3. New equipment or meters are added for production areas
  4. Ownership or change of name of the business
  5. Change of electric or gas provider
  6. When a business or production area moves to a new location
 

BENEFITS OF HAVING A PREDOMINANT USAGE STUDY PERFORMED

  1. Refunds of sales tax up of 6.25-8.25% on electric and gas bills for the previous 4 years.
  2. Exemptions of 6.25-8.25% on future gas and/or electric bills.
  3. Back up to prove to the State and utility company that the account meets the requirements for exemption.
 

TAX ON MANUFACTURER PURCHASES FROM SUPPLY VENDORS AND SERVICE COMPANIES

The following are non-taxable with refunds and exemptions available:
  1. Items which become part of the manufactured product.
  2. Items and equipment which are used in manufacturing the product through making it ready for shipping.
  3. Items that are consumed when manufacturing the product.
  4. Repair of equipment which is used directly in the manufacturing the product as well as packaging and shipping.
  5. All equipment with a minimum term of 12 months lease which is used in manufacturing the product.
 

APARTMENTS, ASSISTED LIVING, NURSING HOMES, AND RETIREMENT HOMES

  1. Family dwellings, multi-family apartments, or housing complexes when occupied by the owner qualify for exemption and refund of certain sales taxes.
  2. Nursing homes, assisted living facilities, apartments, and retirement homes qualify if the average length of stay overall is more than 29 consecutive days but must be supported by valid documentation.
  3. Certain purchases from vendors and suppliers that are used in caring for residents are non-taxable.
  4. Refunds of 6.25-8.25% sales tax up to 48 months prior and exemption on future bills for the above.
 

NON-PROFIT ORGANIZATIONS

  1. Certain classifications of non-profit organizations are exempt on purchases for running the organization.
  2. Sales tax can be refunded up to 48 months back and set up for exemption on future bills.
 

RESTAURANTS

The following are non-taxable with refunds of 6.25-8.25% tax back up to 48 months and exemptions on future bill invoices:
  1. Purchases of supplies given to the customer on a one-time non-reusable basis that further the sale of the food.
  2. Purchases of health related products used in preparation or cooking areas.
  3. Equipment or supplies used during the manufacturing of the food.
  4. Equipment with a twelve month lease or more that is used in the manufacturing of food.
  5. Overpayment of sales tax on employee meals, comp meals, or 2-for-1 specials.
 

HOW WE HELP WITH VENDOR AND SUPPLIER PURCHASES

  1. We review your invoices from product supply vendors, equipment suppliers, leasing companies, and repair services for a maximum of 48 months prior on an item-to-item basis for incorrectly charged sales tax.
  2. We then send a qualified refund request with documentation to the State Comptroller or the vendors or suppliers to issue the refund directly back to your firm. This refund is comprised of tax that you should not have paid.
  3. We prepare the documentation for you to submit to your vendors, suppliers, and repair people so that future purchases will not reflect the sales tax of 6.25-8.25%.
  4. If needed we will work with your supplier and the State Comptroller's Office to be sure that you are given every exemption to which you are entitled.

THE STATE COMPTROLLER AND MANY VENDORS WILL NOT REFUND BACK TAX WITHOUT DETAILED DOCUMENTATION FOR EACH INDIVIDUAL ITEM SUPPORTED BY LEGAL BACKUP PROVING THE REFUND SHOULD BE GRANTED.
Near Dallas Fort Worth & Serving all of Texas since 1998!

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