Sales of electricity are subject to the 3% State rate of sales tax, except for certain sales of electricity to commercial laundries and dry cleaners, which are subject to the 2.83% State rate of sales tax. Sales of electricity to manufacturers and farmers are subject to the 1.8% State rate of sales tax. Effective July 1, 2008, sales of electricity to manufacturers and farmers will be subject to a 1.4% State rate of sales tax. For additional information on sales of electricity, refer to Section 39 of the Sales and Use Tax Technical Bulletins.

Retail sales of telecommunications service and ancillary service are subject to a 7% combined general rate of tax. For additional information on telecommunications service, refer to Section 21 of the Sales and Use Tax Technical Bulletins.

The electricity and telecommunications sales and use tax is to be reported separately to the Department on the Utility and Liquor Sales and Use Tax Return, Form E-500E. Information about the filing frequency and due date requirements can be found in Filing Frequency and Due Dates.

Last modified on: 04/01/08 09:32:19 AM .