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 in 2023, only a person’s “domicile” (primary residence) will be exempt from sales tax on utility services, including electric bills.
Fleming-Mason Energy 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 Fleming-Mason Energy 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 Declaration of Domicile Form (download a PDF of the form below), 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. Landlords with multiple tenants need to contact Fleming-Mason Energy at 1-800-464-3144 to obtain a form.
Frequently Asked Questions
What is this new tax on utilities?
This is not a ‘new’ tax. This is an expansion of existing Kentucky Department of Revenue sales tax to include utilities.
Does the co-op keep this money?
No. Fleming-Mason Energy has been mandated by the Kentucky Department of Revenue to collect the sales tax and remit collected funds to the Department of Revenue.
Will I automatically be assessed sales tax if I don’t have my form turned in by January 1, 2023?
No. Fleming-Mason Energy is only beginning the process of collecting Declaration of Domicile forms for affected account holders. We will not make broad scale tax re-assignments.
Do I need to fill out and return this form if I only have one account?
No. However, members with one account are welcome to complete a Declaration of Domicile Form in case the Department of Revenue instructs Fleming-Mason Energy to collect them on all accounts in the future.
May a member claim the residential utility exemption on all utilities supplied to a primary residence with one meter servicing the home and another meter servicing an outbuilding?
Yes, the residential utility exemption may apply under the following circumstances: a) the utility meters must serve a single location that is the declared place of domicile, b) the utility services through both meters must be exclusively for residential usage, and c) the resident must submit a fully completed Declaration of Domicile Form 51A380, for each metered account.
Can I fill out this form for a family member?
The actual person that resides on the premises should be the one to fill out the form. However, if necessary, an adult child can fill out the form on behalf of elderly parents, or a parent can fill out the form on behalf of a child. Since the courts and the Legislature have not yet clarified this issue, be aware that it may be declared legally insufficient, and you may need to have the actual resident fill the form out again in the future.
If an individual owns two or more homes, lives in one and rents the others, could the other qualify for exemption?
Yes. For the rental unit, the renter will need to complete the Declaration of Domicile Form.