Act now to claim your Kentucky Department of Revenue primary residence sales tax exemption
Co-op members with multiple meters need to take action
To help our members-owners navigate recent changes to Kentucky’s sales tax laws, Inter-County Energy is launching a public awareness campaign.
Beginning January 1, 2023, the Kentucky Department of Revenue will only exempt a person’s “domicile” (primary residence) from sales tax on utility services, including electric bills.
Inter-County Energy 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, co-op members need to take action. Members who have one account need to fill out a form and submit to our offices. Also, members who have multiple meters in their name need to declare which meter or meters are associated with their primary residence.
Available at the Kentucky Department of Revenue website, the Primary Residence Sales Tax Exemption Form allows utility customers to declare whether the address listed on their electric bill is their primary residence. A second form from the department is available for landlords with multiple tenants at a single-metered property. Failure to provide a completed declaration form may result in the loss of a sales tax exemption for members who have multiple meters in their name.
For more information, members are encouraged to contact the Kentucky Department of Revenue or visit www.kyelectric.coop/taxanswers. For more information, call our offices at 1-888-266-7322. Please send the completed signed form to the following email address: salestax@intercountyenergy.net.
Primary Residence Sales Tax Exemption Form (51A380)
Frequently Asked Questions
Do I need to fill out and return this form if I only have one account?
Yes. You must fill out the form in order to avoid paying sales tax on utility services at your primary residence. This form must be completed even if you only have a single account and that account is your primary residence.
Can I fill out this form for a family member?
The actual person that resides on the premises should be the one to fill out the form. However, if necessary, an adult child can fill out the form on behalf of elderly parents, or a parent can fill out the form on behalf of a child. Since the courts and the Legislature have not yet clarified this issue, be aware that it may be declared legally insufficient and you may need to have the actual resident fill the form out again in the future.
Can I fill out this form for a tenant or renter on my property?
No. If a landlord or owner has placed the utility service in their own name, they must pay sales tax on the service. Alternatively, a landlord or owner may elect to move service into the tenant’s name and allow the tenant to claim the sales tax exemption.
I have a separate account on my barn/garage/shed, do I have to pay sales tax on it?
If a separate account is located on the same property, in close proximity to residence, and is not used for a commercial purpose – such as a separately metered garage – then it can be considered a part of the residence and may be tax exempt.
Separate structures that are used for commercial purposes or are not on the same property are not tax exempt and you should not fill out a form for those accounts.