Need some advise.
Large office Bld 60,000sq ft.
Broken into 4 units.
1 main POCO meter
4 emon-demon subs
no house load meter.(for parking lot lights and general soffit lights and such)
POCO sends one bill to land management company.
Land Mangement sends out 4 bills to tennants, and adds sales tax on top of usage bill.
EX. Total POCO bill $10,000/month
4 equal tennants, equal usage $2,500/month.
Tennants bill is 2500x.o6% ($150)sales tax=$2650.
4 tennants x 2650=$10,600 being billed on the original invoice of $10,000.
I didn't think they could do this, I thought the Management companies were restricted in making a profit on energy use, and/or generation.
State is PA.
Any help if this is actually legal to charge sales tax on something you are not selling?