For Your Business

Sales Tax Exemption

General Information

IOWA
The state of Iowa offers a processing exemption to residential agricultural customers (farmers) and co-ops, along with manufacturers, food processors, printers, greenhouses and restaurants and an exemption to private non-profit education facilities – not including churches – and governmental entities on the federal, state, county and municipality level and their associated boards, commissions and agencies. All customers must meet the Department of Revenue requirements and provide MidAmerican Energy Company with required documentations. Contact the Iowa Department of Revenue for more information.

NEBRASKA
The state of Nebraska offers tax-exempt sales to government and municipal agencies, educational institutions, hospitals and other specific agencies according to their rules and regulations. Customers must provide documentation supporting claims. Contact the Nebraska Department of Revenue for more information.

SOUTH DAKOTA
The state of South Dakota offers sales tax exemptions to government, municipal and relief agencies, agricultural entities, Native American tribes and other specific agencies according to their rules and regulations. Customers must provide documentation supporting claims. Contact the South Dakota Department of Revenue for more information.

ILLINOIS
The state of Illinois does not offer a sales tax exemption to Illinois utility customers. The tax charged on an Illinois bill is a state utility tax rather than a sales tax. A utility tax is levied on utility companies for receipts of furnishing service to their customers. Contact the Illinois Department of Revenue for more information.

Frequently Asked Questions
  1. How do I know if I qualify for a sales tax exemption?
    • Exemptions vary by state. Check with the Department of Revenue in your state for a complete listing of qualifying businesses.
  2. How can MidAmerican Energy assist me with a sales tax exemption?
    • MidAmerican Energy has employees trained specifically to answer questions regarding tax exemptions. MidAmerican Energy also has informational tax packets available to assist you with preparing required documents. This information can be obtained by emailing a request to billing's tax department or by calling 800-329-6261. Additional information also can be found by visiting the Department of Revenue website for your state.
  3. Where do I send my sales tax exempt information?
    • Completed forms and signed documents should be mailed to:
      Attn: Billing Tax Department
      MidAmerican Energy Company
      106 East 2nd Street
      P.O. Box 4350
      Davenport, Iowa 52801

      Documents also may be scanned and emailed to billing's tax department or faxed to 563-333-8364.
  4. How do I know that I completed the forms correctly?
    • Every completed certificate and utility study received by MidAmerican Energy is reviewed and verified. MidAmerican Energy will add the tax exempt status to your account if the study meets the requirements for the state in which your business is located. If discrepancies are found, the study, along with a letter of explanation, will be returned to you.
  5. Where can I check to see if my exemption was accepted?
    • The sales tax exemption is applied to the designated meter on your utility account once all documents have been reviewed and approved. The percentage will appear as a line item on the bill and will indicate the percent of sales tax you are being assessed. For example, if your current state tax rate is 6% and you have a 15% sales tax exemption, the tax amount being applied to your monthly bill would display as 5.1%.
  6. How long is my tax exemption status valid?
    • Tax exemption is valid for three years unless you have a change in processes or ownership. If your business changes ownership or there are process changes, contact MidAmerican Energy to remove or update the exemption status. MidAmerican Energy will send you a notification letter 90 days before your certificate expires. You are responsible for submitting a new certificate and updated documents to maintain your tax exemption status.