FRANKFORT, Ky. (LEX 18) — Kentucky House Bill 8, which goes into effect January 1st, will enforce a utility tax for Kentuckians who have multiple homes. Kentucky House Representative Jason Petrie explains that this tax isn't new.
"Realize that there is no new tax being imposed, that is completely false. The tax has been around for a long time, it is a clarification and a closing of loopholes on the exemption."
There has been some concern among residents about who will see the taxes on their utility bills this January. Representative Petrie says people who own one residence will not be impacted. He says this part of the bill is about making sure everyone "pays their fair share."
He says, "Those type situations, here you have multiple homes, is really the loop-hole that's being closed. If you have one primary residence that's in Kentucky — this should not affect you."
Now, several utility companies across the state are asking their customers to fill out a form to determine if they will be taxed or if they are tax-exempt.
Lauren Fritz with Fleming-Mason Energy says, "We are telling members if they want to go ahead and fill it out, we'll go ahead and put it on file. But right now, we're just focused on that group that will have the changes January 1st of the new year."
That group includes customers with multiple properties. Here's what that form looks like. Fleming-Mason Energy says this advice for those that own businesses.
Fritz says, "If you're a business and you actually have a meter that's in your business name and you have a tax exemption, we would love for you to send that to us. So, then we can flag you as tax exempt and you won’t be charged sales tax."
Other companies like LG&E and KU are asking their customers to fill out this form and return it by December 15. Again, they say no action is required for exemption for people who have one home. They say, "Kentucky Utilities began last month sending out letters and emails to customers who have multiple properties (on our system) with the details. Folks can complete the tax exemption form on our website and submit it to us before the deadline of Dec. 15 and identify their primary residence."
Click here for the form.
Representative Petrie reminds us that the date is not a hard deadline and says that these companies have been advised to not automatically start taxing customers. Representative Petrie has this final word on whether or not you should complete a form.
He says, "If you're a single account owner with your home, do not worry. And if the co-ops are putting an arbitrary deadline on the 15th, the 20th, the 31st, that's their arbitrary deadline — that's an administrative issue with them, not with the general assembly."
