Exemption from Indiana Utility Sales Tax

Posted on Wednesday, November 21, 2012

One of the benefits of being a tax exempt organization is the ability to be exempt from sales tax under state law, including sales taxes on utilities, if applicable.

Utilities (telephone, gas, electric, steam and water) used to further an organization’s exempt purpose are exempt from sales tax in Indiana.  An organization must apply to receive the exemption by completing Indiana Form ST-200, Utility Sales Tax Exemption Application.  A separate form must be completed for each utility account.  In addition to general information about the organization and utility company, the organization must also provide a copy of a utility bill with the application.  Nonprofits are also required to explain how the utility is used to further the exempt purpose of the organization.

To claim a refund for Indiana sales tax paid on previous utilities, a nonprofit must complete Form GA-110L, Claim for Refund.  The organization must provide an explanation as to why the refund is due along with documentary evidence to support the claim.  Documentary evidence usually consists of copies of bills or a “billing history” from the utility service.  The bill history must have a column showing the amount of sales tax paid for each period and must be presented on the letterhead, or the like, of the utility company. 

Refunds for Indiana sales tax paid on previous utilities may only be claimed for the current year and the three previous years.  For example, if an organization completes Form GA-110L and it is postmarked on or before December 31, 2012, it could claim a refund for sales taxes paid in all of 2009, 2010, 2011 and 2012.

Make sure your organization doesn’t miss this exemption.

Posted by: Carrie Minnich, CPA

Posted in Mission Minded Nonprofits

Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.

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