To help co-op members navigate recent changes to sales tax laws, Kentucky’s electric cooperatives are launching a public awareness campaign.

In the 2022 legislative session, Kentucky lawmakers enacted a change to sales tax laws. Beginning Jan. 1, 2023, only a person’s “domicile” (primary residence) will be exempt from sales tax on utility services, including electric bills.

Gibson Electric Membership Corporation is one of 26 electric cooperatives in Kentucky who work together to advocate for electric consumers. These efforts have helped protect the longstanding 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 Jan. 1, 2023.

To make sure the sales tax is not mistakenly applied to the electric bill of your primary residence, some co-op members need to take action. Members who have multiple meters in their name need to declare which meters are associated with their primary residence.

Available at the Hickman Member Service Center or online at https://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. You can find the Primary Residence Exemption form linked here.

A second form is available for landlords with multiple tenants at a single-metered property. You can find the Landlord of Master Metered Property Only form linked here.

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, you are encouraged to contact your local Gibson EMC member service center or visit https://kyelectric.coop/taxanswers/.