Residential Sales Tax Exemption

Co-op members with multiple meters need to take action

In the 2022 legislative session, Kentucky lawmakers enacted a change to sales tax laws. 

Beginning January 1, 2023, only a person’s “domicile” (primary residence) will be exempt from sales tax on utility services, including electric bills.

Big Sandy RECC 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.

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

Complete the Utility Sales Tax Exemption Form, which allows utility customers to declare whether the address listed on their electric bill is their primary residence. A second form from the cabinet is available for landlords with multiple tenants at a single-metered property.