Utah Utility Sales Tax Exemption

Manufacturers and industrial processors with facilities located in Utah, may be eligible for a utility tax exemption. Utah offers an exemption from state and local sales tax on the purchase of electricity, natural gas, and water used in qualifying production activities. This tax exemption is authorized by Utah Code § 59-12-104(39).

Exemption Language of Utah Code § 59-12-104(39)

"Sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use" are exempt from sales and use tax."

Utility Study Requirement for Exemption Qualification

A Utah utility tax study must list every piece of equipment and appliance (production and non-production) that uses the utility and the annual consumption of each. Failure to properly calculate or classify utility usage is cause for denial of the exemption.

Utah Statute of Limitations on Tax Refund

3 years

State Sales Tax Rate: 6.1%

Average Local Sales Tax Rate: 1.08%

Helpful Resources

Utah Utility Exemption Certificate: Exemption Certificate TC-721

Utah Utility Exemption Statute/Rule: Utah Code § 59-12-104(39)

Utah Claim Form for Tax Refund: Application for Refund TC-62PR