Sales tax exemption

MGU business customers could qualify for sales tax exemption on energy bills if you have any of the business types listed below.

If you believe that your business meets the exemption requirements and is eligible for this tax exemption, complete the Michigan Sales and Use Tax Certificate of Exemption to ensure you are billed correctly. Before sending your certificate of exemption, please review our checklist.

• Agricultural production
  
  • Agribusinesses in Michigan are tax exempt for natural gas used in agricultural production.
  • They are also exempt from sales tax on the Customer Charge if they have no natural gas use.
• Industrial processing
  
  • Businesses in Michigan are tax exempt year-round for natural gas used in industrial processing. Qualifying activities include:
    • production
    • patent, experimentation, development, engineering inspection and quality control
    • planning, scheduling and production control
    • design, construction and maintenance of factory machinery, equipment and tooling
    • disposal of production scrap and waste
    • production supervision
    • production material handling
• Nonprofit organization
  
  • Nonprofit organizations in Michigan are tax exempt year-round for natural gas use. This includes any corporation, community chest fund, foundation or association that is organized and operated exclusively for religious, charitable, scientific or educational purposes or for the prevention of cruelty to children or animals.

Email the completed certificate of exemption form to businesscenter@michigangasutilities.com, or mail it to:

Michigan Gas Utilities
Customer Service
P.O. Box 19001
Green Bay, WI 54307-9001

If you have questions about whether an exemption applies to your business, your tax accountant is your best resource. If you have questions about your current tax status with MGU, please contact us.

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