Starting January 1, 2025, Indiana restaurants that derive at least 75% of their receipts from the sale of prepared food can claim a 50% sales tax exemption on electricity usage without conducting a utility study.
To take advantage of this exemption, qualifying restaurants can file Form ST-200R with the Indiana Department of Revenue (DOR) to receive an ST-109R. This form will be available starting December 18th, 2024, and can be filed via the INTIME portal or submitted as a hard copy.
Once the DOR processes the form, restaurants will receive a Form ST-109R, which they can provide directly to their utility provider. This streamlined process eliminates the need to pay the full sales tax to the utility provider and subsequently file for a refund with the DOR, which has been a common practice for restaurants in the past.
Restaurants aiming for a 100% predominate use exemption must still file Form ST-200 with a utility study.
This update simplifies the process and lowers the cost for restaurants to access partial exemptions, encouraging broader participation.
For more details, visit: Utility Sales Tax Exemption Info and Filing Form ST-200R.
If you need assistance navigating this exemption or filing the necessary forms, contact Kemper CPA Group. Our team is ready to help you take advantage of this opportunity.
