Beginning January 1, 2023, only a person’s “domicile” (primary residence) will be exempt from sales tax on utility services (fuel*).
Kentucky will begin imposing a sales tax on properties other than your primary residence beginning January 1, 2023.
To make sure the sales tax is not mistakenly applied to the utility bill of your primary residence, you should take action. Utility customers who have more than one residence in their name need to declare which meter is associated with their primary residence.
A Kentucky Department of Revenue form allows utility customers to declare whether the address listed on their utility bill is their primary residence. Failure to provide a completed declaration form may result in the loss of a sales tax exemption for customers who have multiple residential meters in their name. (Download forms below)
Send completed forms to your utility provider before January 1, 2023.
Here are some highlights about the sales tax exemptions for utility services:
• If you live in a home with only one electric meter, which officials indicate is the case for the vast majority of residential utility customers, then nothing is changing for you and no action is needed by you.
• If you live in a home with a separate meter for a detached garage or other building and that garage/building has a separate meter, you may be eligible for this sales tax exemption.
• If you live in a home with a separate meter for a detached garage or other building and that garage/building has a separate meter and you are operating a business out of said building, this exemption does not apply. For example, officials say if you are a mechanic and you are operating a repair business out of a garage on your property, that is still considered a commercial meter.
If you have additional questions, contact your utility provider.
These rules will go into effect January 1, 2023.
* – Kentucky will begin charging sales and use tax on sewer, water and fuel services. Fuel includes but not limited to natural gas, electricity, fuel oil, bottled gas, coal, coke and wood.
Exemption form for your residence – 51A380-Form
Form for landlords – 51A381-Form
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