Sales Tax Exemption for Electric Heat

Homeowners who use electricity as their primary residential space heat (50% or more) are exempt from sales tax for the November through April billing months.

If you have a separate meter used solely or primarily to measure heating, then only the electricity going through that meter is exempt from sales tax. For example, only the usage on an off-peak meter is exempt.

Your total bill is exempt for the six-month period if electricity is your primary heat source but you have only one meter for both general usage and electric heat.

Some of our customers use electricity as their primary heat but only a small portion of their electric heat registers on a separate meter. They also qualify for the total sales tax exemption during the heating months.

You will not be billed for Minnesota sales tax on your November statement if you meet the requirements and you currently have an exemption certificate on file at your Cooperative's office.

If you are unsure of your sales tax status, please call us at 218-463-1543 or 888-847-8840.

Members receiving a tax credit for electric heating when electric heat is not their primary source of heat are in violation of the sales tax law. Please notify your Cooperative if you change from electric heat to some other heating source.