Utility companies ask Kentucky customers to fill out exemption form to avoid utility sales

MAYFIELD, KY — Changes are coming to the Kentucky tax system, and it’s likely you will be impacted.

In 25 days, KY HB 8 goes into effect. It will affect how various services are taxed.

Thirty-four additional service categories become subject to tax, including ride-share companies and short-term rental services, like Airbnb. 

Companies aren’t the only ones seeing changes.

Utility customers could also see a sales tax applied to their bill, unless they fill out an exemption form.

Sewer services, water and fuel, including natural gas and electricity, will be taxable at the first of the year. Only utilities at your primary residence can be exempted.

Frustration is one way to describe Kim Holloway’s reaction to the utility sales tax.

“We’re being taxed to death. I feel like every time we turn around, there’s a new tax on something,” Holloway says.

Blindsided is another.

“I didn’t even know that this form existed until yesterday,” Holloway says.

Holloway filed the exemption form for her primary residence in Mayfield, but Holloway just purchased another property this year.

“We also own a home in Murray that we are renovating. No one lives there at this time, but of course we’ll be paying the sales tax on that utility bill also,” says Holloway.

Between her homes and her farm, there are three separate meters to her name. Two of those will be taxed.

“Our utility bill is going to increase about $42 a month, which doesn’t sound like a whole lot, but we’re going to be paying in other ways also. It just all adds up,” Holloway says.

Scott Adair, with Jackson Purchase Electric Cooperative, says JPEC is urging all customers to file the form.

“The gold standard would be that everybody fills that form out. Certainly those folks that have multiple residential accounts need to fill those out so that those aren’t mistakenly taxed,” Adair says.

Adair says many customers don’t know about the tax change, so they’re launching a campaign to make customers aware.

Holloway feels legislators should have warned about the change much sooner.

“It affects all of us. It may not be interesting. It may not be something we want to spend our time doing, but we have to start holding them accountable,” says Holloway.

A separate form must be submitted to all your utility service providers.

Local 6 reached out to the Kentucky Department of Revenue for clarification on some questions. We never received a call back.

There is no expiration date for the exemption form. You will only need to update it if there is a change in your primary residence.

Click here to view the form.