Small Business Energy Exemption from Sales Tax

The Massachusetts Department of Revenue (“MA DOR”) has updated its process for companies that claim a small business exemption from sales tax on their electricity bill (formerly the Form ST-13).  The Form ST-13 has been replaced by the Small Business Energy Exemption (“Form SBE”).  The Form SBE will be effective for 2 years.

What does this mean?

  • Customers previously eligible for the Massachusetts ST-13 exemption will need to register their exemption status on the MA DOR’s website by March 31, 2019
  • Customers must file this form directly with their community’s current supplier or the supplier may start charging the customer sales tax
  • Customers must re-file for the Form SBE every 2 years

How do customers register for the Form SBE?

  • Customers register for the Form SBE on the MA DOR’s website at: https://mtc.dor.state.ma.us/mtc/_/
  • After you log in to your MassTaxConnect account, you will see a new link under the “I Want To” heading called “Request/Update Small Business Energy Exemption.” If you don’t have a MassTaxConnect account, see information below for how to create one.

What happens if applicable customers do not do this?

  • The supplier may be required to add sales tax to the customer’s monthly bill.  

Who is affected?
Any Massachusetts customers that were eligible for the ST-13 exemption (meets all of the criteria below):

  • Gross income less than $1,000,000 in the prior year and anticipated for the current year;
  • 5 or less full-time employees; and
  • Energy must only be used by the qualifying business.

For more information, please visit www.mass.gov/info-details/form-st-13-replaced-by-online-application-for-small-business-energy-exemption.

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