Georgia Utility Sales Tax Exemption
Georgia offers a sales tax exemption for electricity, natural gas, and water used directly in the manufacturing of tangible personal property for sale. The utility exemption applies to both state and local sales taxes, with the exception of local taxes levied for educational purposes.
Eligible Utilities and Activities
The exemption covers energy used for:
- Operating machinery and equipment
- Processing raw materials
- Manufacturing finished products
- Other activities integral to the production process
To qualify, the energy must be necessary and integral to the manufacturing process at a facility located in Georgia. This includes energy used for heat, light, power, refrigeration, climate control, or processing.
Filing Requirements
To claim the exemption, businesses must submit a completed exemption certificate, specifically the Georgia ST-5 Certificate of Exemption, to their utility provider. This form certifies that the utility usage is eligible for exemption under state law and must be fully completed by the purchaser and provided to the vendor at the time of the sale. If sales tax was previously paid on qualifying utility usage, businesses may request a refund. Refund claims can typically be made for up to 36 months prior to the request date and may be requested either through the utility provider or directly from the Georgia Department of Revenue.