A predominant use study in Missouri is a local and state government initiative that makes it possible for companies to apply for sales tax exemption status. One of the main requirements for a qualification is that more than half of the natural gas or electric consumption by a company is used for specific activities.
How to Qualify for Tax Exemption
In order to prove that a utility is in predominant use in a company, you must complete a predominant use study in Missouri. A predominant use study is a full evaluation and analysis of the natural gas or electricity that your company uses. The data collected is used to determine the sales tax exemption for which your company qualifies.
There are a large number of manufacturers and other companies that meet the criteria and qualify for sales tax exemption status. Such tax exemptions may apply at both a local and state level.
Types of Companies that Qualify
The primary industry that can qualify for tax exemption status is manufacturing and fabrication. The companies within this industry will typically fall into one of the following categories:
- Assembly, large facilities or small shops
- Fabrication
- Processing
A few examples of this type of company include video recording production, print shops, semi-conductor plants, refineries, and chemical plants. Additional subcategories that may also qualify following a predominant use study in Missouri include:
- Bakeries
- Food and beverage processing plants
- Retirement homes
- Assisted living and nursing homes
- Gas and oil operations
- Mobile home parks and RV parks
- Apartment complexes
- Condominium complexes
- Horticultural and agricultural
- National defense operations
If you are interested in learning more about a predominant use study in Missouri, we are here to assist at Business name. For more details, visit us now
