Sales Tax Exemption
tax

Co-op members with multiple meters need to take action

To help our consumer-members navigate recent changes to Kentucky’s sales tax laws, Grayson RECC is launching a public awareness campaign.

Beginning January 1, 2023, only a person’s “domicile” (primary residence) will be exempt from

sales tax on utility services, including electric bills.

Grayson RECC 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 Grayson RECC 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.

For more information, consumer-members are encouraged to contact Grayson RECC or visit www.kyelectric.coop/taxanswers.