Deposits for electricity, natural gas, or telephone services are no longer subject to sales tax. Any taxes previously collected and reported on deposits for utilities should be refunded to the customer when the deposit is refunded.
Hookup and disconnect fees that do not include construction services are
still subject to sales tax when the utility service is also subject to sales
For more information on Qualified Utilites, read more in the Tax Fact. Also, more information regarding Utilities is in the 2014 April E-News.