New York Utility Sales Tax Exemption

Manufacturers and industrial processors with facilities located in New York, may be eligible for a utility tax exemption. New York 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 20 CRR-NY 528.22.

Exemption Language of 20 CRR-NY 528.22

"Fuel, gas, electricity, refrigeration and steam and gas, electric, refrigeration and steam service of whatever nature is exempt from the sales and compensating use tax when used directly and exclusively in the production, for sale, of tangible personal property, gas, electricity, refrigeration or steam by one of the following endeavors: manufacturing; processing; assembling; generating; refining; mining; or extracting."

Utility Study Requirement for Exemption Qualification

A New York 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.

New York Statute of Limitations on Tax Refund

3 years

State Sales Tax Rate: 4%

Average Local Sales Tax Rate: 4.52%

Helpful Resources

New York Utility Exemption Certificate: Exempt Use Certificate ST-121

New York Utility Exemption Statute/Rule: 20 CRR-NY 528.22

New York Claim Form for Tax Refund: Application for Refund AU-11