Tax Type
Retail Sales and Use Tax
Description
Utilities;Lessors of Two or More Residences;Classification as Commercial Consumer
Topic
Taxability of Persons and Transactions
Date Issued
04-18-1975
For utility services tax purposes, a municipality may classify a lessor of two or more residential apartments as a "commercial consumer' (taxable on the first $100 of his monthly utility charge) as distinguished from a "residential consumer' (taxable on the first $10 of his monthly utility charge). Classifying these lessors as "commercial consumers' instead of "residential consumers' is not arbitrary.There are significant differences between persons occupying property for residential purposes and those leasing property for residential purposes.
Attorney General's Opinion