Maryland Electric Utility Wins $2.4 Million Sales Tax Refund

An electric utility company is entitled to a $2.4 million sales and use tax refund because its equipment is used for production activity, a Maryland appeals court said Friday.

Potomac Edison Co.’s conductor, substation, and transformer equipment were used predominantly to process electricity, therefore satisfying an exemption in state law, Judge Deborah Sweet Eyler said. Maryland’s comptroller argued the equipment didn’t process but instead delivered the electricity, but the equipment altered the power’s kilowatts so it could be used by Potomac Edison’s customers, the opinion said.

• The court also awarded Potomac Edison interest on the refund because the company overpaid ...