Maryland Exemption Certification for Utilities or Fuel Used in Production Activities

Exemption Certification for Utilities or Fuel Used in Production Activities
Tax Year 2022 - Form ST-206 Exemption Certification for Utilities
MARYLAND
FORM

SUT206

20_ _

Exemption Certification for Utilities
or Fuel Used in Production Activities

Instructions
•	 This form is to be used to claim from suppliers the sales and use tax exemption for utilities consumed in a production
activity. The completed form is to be provided to the supplier and not to the Compliance Division.
•	 This form is not to be used to claim a resale exclusion or exemption other than the production activities exclusion.
•	 This form is not to be used to claim exemption for purchases other than those of gas, electricity, steam, oil or coal.
•	 Purchases of utilities and fuel by retail food vendors for use in processing food for sale are not eligible for exemption.
SUPPLIER

Name

Street address

City or Town	

State	

ZIP Code +4

BUYER

Name	

Sales and Use Tax Registration Number

Street address

City or Town	

State	

ZIP Code +4

TYPE OF UTILITY FUEL (Check appropriate box)
	

Gas	

Electricity	

Steam	

Oil	

Coal

If applicable, enter:

Service Location

Meter Number(s)	

Utility Account Number

Describe the purposes to which the utilities or fuel are being used, specifying the products produced

I HEREBY CERTIFY under the penalties of perjury that the above described utilities or fuel will be consumed directly and
predominantly within the meaning of Regulation .10. (See Page 2 of this form for pertinent provisions of Regulation .10)
I understand that purchases of utilities and fuel by retail food venders for use in processing food for sale are not eligible for
exemption.

	

Signature 	

	

Date	

COM/SUT206	02/22

	

Print name

Telephone Number	

Title

MARYLAND
FORM

206

Exemption Certification for Utilities or Fuel
Used in Production Activities

Page 2

Regulation .10 Natural and Artificial Gas, Electricity, Steam, Oil and Coal
A. Consumption in Production Activities.
(1)	The sale of gas, electricity, steam, oil, or coal, consumed
directly and predominantly in a production activity is not
subject to the tax. Production activities do not include
processing food or a beverage by a retail food vendor
or operating administrative or commercial facilities, such
as offices, sales and display rooms, retail outlets and
storage facilities, including refrigerated storage facilities.
(2)	If electricity, gas, or steam is sold through a single meter
for both exempt and taxable uses, the purpose which
consumes the majority of the electricity, gas, or steam is
the basis for determining the taxability of the sale. The
buyer shall determine the majority usage, considering
the relative connected load for each purpose and the
relative time of operation of each over a period of one
year, unless the circumstances of a particular case
require a different period. Similarly, the taxability of
purchases of oil or coal is determined by the majority
use where it is impracticable to measure separately the
amount purchased for each purpose.
(3)	If the sale of electricity or natural gas is exempt from
tax, the sale of the transmission, distribution, or delivery
of that electricity or natural gas is also exempt from tax.
(4)	In order to obtain this exclusion, the buyer of gas,
electricity, steam, oil or coal shall present to the vendor
of the commodity and the vendor of the transmission,
distribution, or delivery service a certification, upon a
form available from the comptroller, setting forth the
basis for the claimed exemption. Upon presentation
of the completed and signed form, the vendor may
not collect the tax until notified by the comptroller to
resume collection or until the certification is revoked by
the buyer. The buyer shall revoke the certification when
no longer entitled to exclusion under the terms of this
regulation.

COM/SUT206	02/22

B. Exempt Buyers.
(1)	A person operating a non-profit religious, charitable,
or educational organization possessing an exemption
certificate issued by the comptroller under Regulation
.22, and other persons possessing an exemption
certificate issued by the comptroller, may claim
exemption for the tax on gas, electricity, steam, oil, coal,
or the transmission, distribution, or delivery of electricity
or natural gas by providing a photocopy of this certificate
to the vendor.
(2)	A member of a foreign diplomatic corps may purchase
gas, electricity, steam, oil, coal or the transmission,
distribution, or delivery of electricity or natural gas
free of tax by presenting to the vendor the evidence of
exemption issued by the United States Department of
State.
Special Instructions for Restaurants and Other Food
Servers
Purchases of utilities and fuel by retail food vendors for use in
processing food for sale are not eligible for exemption.
Note: Do not mail this form to the Compliance Division.
The completed form is to be provided to the supplier and
not to the Compliance Division.
For more information email questions to: CDSTREFUNDS@
marylandtaxes.gov or call 410-767-1530.
Maryland Relay Service (MRS) 711.
Direct inquiries to:
Comptroller of Maryland
Compliance Division
301 West Preston Street, Room 303
Baltimore, Maryland 21201-2383