Make Ends Meet: Ky. tax law changes explained

LOUISVILLE, Ky. (WAVE) - Kentucky’s sales tax will be changing in the new year and will effect more than 30 different services.

The changes come as part of House Bill 8, which makes 34 additional service categories subject to tax, and require the services to collect 6% sales tax from customers for providing those services.

This mean Kentucky residents will now be taxed on multiple services, including sewer bills, water bills and electric bills starting on Jan. 1.

Any utility bill on any home that isn’t someone’s primary home will be taxed, meaning it will impact landlords or anyone who owns multiple homes.

Louisville Gas & Electric and Kentucky Utilities said anyone who has multiple residential accounts can claim exemption for their primary residence by filling out this form.

Representatives with Louisville Water said the overwhelming majority of residential customers will not be affected by the new law, stating only 10,000 of Louisville Water’s 250,000 residential accounts will be taxed.

Louisville Water said commercial customers are also already taxed under current law.

Residents who have not received communication from Louisville Water do not need to take further action, a representative confirmed.

The Kentucky Department of Revenue is also reaching out to homeowners to designate a primary address. The deadline to return the Declaration of Domicile form is Dec. 15.

For more information from the Kentucky Department of Revenue on the upcoming sales and use tax changes, click or tap here.

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