This Ruling has been superseded by PS 94(3)
Utility Exemption - Residential
According to the information presented in your letter, there are sixty-five individual units in X Condominium Complex. Each of the sixty-five units is separately billed by the electric company for sales of electricity.
The sale of electricity for residential dwelling purposes is exempt from sales or use tax. When the utility company bills a condominium association for the electricity used by the entire complex, inclusive of all units contained therein, sales and use tax would not apply to the charges for electricity, providing the condominium complex is predominately residential.
In the situation described in your letter, each unit used for residential dwelling purposes is exempt from sales or use tax for purchases of electricity. The sales or use tax does not apply to sales of electricity used in condominium units that are rented to tenants who occupy the units as their residential dwellings.
August 22, 1989