Beginning January 1, 2023, only a person’s “domicile” (primary residence) will be exempt from sales tax on utility services, including electric bills.
Kenergy is one of 26 electric cooperatives in Kentucky that work together to advocate for electric consumers. These efforts have helped protect the long-standing sales tax exemption for residential energy bills. Though this sales tax exemption remains in place for electric use at a primary residence, Kentucky will begin imposing a sales tax on other properties as of January 1, 2023.
To make sure the sales tax is not mistakenly applied to the electric bill of their primary residence, some co-op members need to take action. Members who have more than one residence in their name need to declare which meter is associated with their primary residence.
Available at Kenergy or at www.kyelectric.coop/taxanswers, a Kentucky Department of Revenue form allows utility customers to declare whether the address listed on their electric bill is their primary residence. Failure to provide a completed declaration form may result in the loss of a sales tax exemption for members who have multiple residential meters in their name.
Kenergy members can send completed forms to: Kenergy, P.O. Box 18, Henderson, KY, 42419 or firstname.lastname@example.org.
For more information, members are encouraged to contact Kenergy at 800.844.4832 or visit www.kyelectric.coop/taxanswers.