Beginning January 1, 2023, only a person’s “domicile” (primary residence) will be exempt from sales tax on utility services, including electric bills.
Pennyrile Electric 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 multiple meters in their name need to declare which meter or meters are associated with their primary residence.
Available at Pennyrile Electric 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. 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.
Submit your completed forms at any Pennyrile Electric office or email to hopk@precc.com.
For more information, consumer-members are encouraged to contact us at 270-886-2555.
Primary Residence Exemption |
Landlord of Master Metered Property Only |
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