Electricity sold for residential use is not taxable for the billing months of November through April when sold to metered members who use it as their primary source of residential heat (more than 50%).
There are two ways to qualify for this tax exemption:
1. The primary source of residential heat is electricity. If there is only one meter, then all electricity measured through that meter is tax exempt during the winter heating months.
2. If there is a second meter present that measures the electric heat separately than the rest of the homes general use.
If more than one type of heat is used, the electricity is not taxable if it is the primary source of heat (supplies more heat than any other source for the longest period of time during the heating season). If the primary source of residential heat is electricity and there is only one meter for that utility, then all electricity measured through that meter is not taxable during the winter heating months. Reference MN Department of Revenue Sales Tax Fact Sheet 157.
If you qualify, please fill out and submit the residential sales tax exemption application below.
Commercial, Farm, & Irrigation
If your service has tax exemption status for agricultural or industrial production, please provide the Cooperative with Form ST-3, until such time the service will be taxable. Please direct any questions regarding Form ST-3 to your tax preparer or the Minnesota Department of Revenue.
If you have questions regarding your eligibility for sales tax exemptions, please contact the Minnesota Department of Revenue at 651-296-6181 or toll free at 1-800-657-3777.