Changes to Kentucky’s sales tax go into effect in January

KENTUCKY (WKYT) - At the beginning of the new year, changes to Kentucky’s sales tax will go into effect on more than 30 services, one of which includes utilities.

Some Kentuckians will see a tax on their sewer, water, and fuel starting January 1, but exemptions are out there.

The changes will now require sales tax to be charged for residential utility services to any place other than your primary residence. That means you could see a 6 percent sales tax added to your water, sewer and electric bill.

It’s a situation that has some utility companies and co-ops trying to make sure people are aware of the change in an effort to keep the taxes off of a bill if they shouldn’t be there.

Joe Arnold with Kentucky Electric Cooperatives, which represents all 26 co-ops across the state, says their providers have been posting information on their websites and social media accounts trying to warn and prepare customers ahead of the change.

An exemption form (see below) from the Kentucky Department of Revenue keeps primary residences from being taxed and rural co-ops are encouraging their customers to submit this paperwork to them to make sure they aren’t mistakenly taxed.

Kentucky Utilities tells us they started sending out letters and e-mails to customers with multiple properties in their system last month to figure out which one is their primary residence.

Their deadline to return the form is December 15. Local attorneys tell us the onus is really on the customer to fill out and submit the form to their utility providers.

“Six percent doesn’t sound like a lot, but it is an extra six percent, and it could be three of four different utilities, so it is an extra cost,” said Leah Mason, attorney.

We also reached out to the Department of Revenue and Public Service Commission for comment and clarification but have not heard back.

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