Kentucky residents have questions about state House bill focused on utility tax

LEXINGTON, Ky. (LEX 18) — On January 1, 2023, Kentuckians with a number of properties will face a further gross sales tax on their utility payments due to Kentucky Home Invoice 8.

For the previous month, utility firms like Kentucky Utilities have been asking residents to submit a “Declaration of Domicile for Buy of Residential Utilities”. Utility firms are referring members to the Division of Income for additional clarification.

View the 51A380 Tax Exemption Type right here:

Daniel Lowry with Kentucky Utilities says, “In the event that they suppose they meet the parameters and have to take steps to get extra details about the gross sales tax and standards, attain out to the Kentucky Division of Income and get these consultants to assist.”

LEX 18 did attain out to the Division of Income and the response we obtained referred us to on-line assets that reply steadily requested questions on Home Invoice 8.

These residents wish to know, how that invoice will impression them, given their particular circumstances.

Georgetown resident, Alan Bryan, says, “I perceive that is geared towards enterprise and, or landlords, however I didn’t see the place it had household or private conditions or choices for exemptions. I couldn’t discover any language within the KRS.”

Bryan has a mom who lives with dementia. He’s her energy of lawyer. He explains that for years he is had her utility accounts in his title – and now he is questioning what others in related conditions will do that January.

One other Winchester resident, Wade Shimfessel, has a number of properties that want utilities for farming. He’s solely residing on one of many properties and needs to know the way the others will likely be taxed.

He says, “I imply 6% gross sales tax provides up after a substantial amount of time and being a part-time farmer so to say, that hits arduous. You’re already struggling to pay $5 a gallon for diesel gasoline and the market’s simply not as robust because it was.”

Once more, utility firms like Kentucky Utilities say they perceive that there will likely be many circumstances like these that may come up. They proceed to encourage prospects to get in contact with the DOR.

“The Division of Income does have some data on-line that hopefully will help people, so they might use that. They usually can search about this residential gross sales tax.”

For extra data from the Kentucky Division of Income, you’ll be able to take a look at the web site right here.