Predominant Use Studies

Choice Energy Network also uses Predominant Use Studies to lower our client’s utility sales tax liability. A  Predominant Use Study (PUS) is a detailed analysis conducted to determine the percentage of time that a particular property or business use is dedicated to a specific purpose. The purpose of a PUS is to determine the primary or predominant use of a property or facility for purposes of assessing sales and use tax, property tax, or other regulatory fees.

For example, if a business uses a certain percentage of its space for manufacturing and the rest for administrative purposes, a PUS would determine the exact percentage of time that the manufacturing space is used for its intended purpose. This determination is crucial for accurate tax reporting and regulatory compliance.

A PUS can involve the collection and analysis of a wide range of data, including usage logs, energy consumption, and floor plans. The study must be conducted in accordance with specific regulations and methodologies established by the relevant regulatory authority, such as the state tax agency. The study is then certified by a licensed Professional Engineer before being filed with the appropriate govermnt body.

In summary, a Predominant Use Study is a process of analyzing the use of a property to determine the percentage of time it is used for a particular purpose, which can affect the taxes and regulatory fees applicable to the property or business.

Choice Energy Network mainly conducts a PUS for energy consumption to determine the percentage of energy used for specific purposes, such as manufacturing, agriculture, or other eligible purposes. The purpose of an energy PUS is to establish a basis for claiming tax exemptions or discounts on energy usage charges.

In many jurisdictions, businesses that use energy for certain purposes, such as manufacturing or agriculture, may be eligible for tax exemptions or discounts on energy usage charges. To claim these exemptions or discounts, businesses must be able to demonstrate that a predominant percentage of their energy use is dedicated to eligible purposes.

An energy PUS typically involves collecting and analyzing data related to the use of energy, including consumption logs, energy bills, and equipment information. The study must be conducted in accordance with specific regulations and methodologies established by the relevant regulatory authority, such as the state tax agency or energy commission.

In summary, an energy Predominant Use Study is a process of analyzing the use of energy to determine the percentage of energy used for eligible purposes, which can affect the taxes and fees applicable to the energy usage charges.

During the Predominant Use Study, we are also able to determine if there has been overpayment of sales taxes which we recover for you.

Overpaid sales tax is a situation that occurs when a business or individual pays more sales tax than is required by law for a transaction. This can happen for a variety of reasons, such as errors in calculation, mistakes in applying tax rates, or misunderstanding of tax laws.

In some cases, a business may not be aware of exemptions or credits that are available to them and as a result, they may overpay their sales tax. Alternatively, a business may mistakenly apply a higher tax rate than necessary or apply tax to items that are exempt from sales tax.

When an overpayment of sales tax occurs, the business or individual may be entitled to a refund of the overpaid amount. The process for obtaining a refund varies depending on the jurisdiction, but typically involves submitting a refund request and providing documentation to support the claim.

It is important to note that the process for obtaining a refund of overpaid sales tax can be complex, and it is advisable to seek the guidance of a tax professional to ensure compliance with the applicable regulations and requirements.

Types of Industries