December 12, 2022
The State of Kentucky currently allows a sales tax exemption for residential utility customers, and Lebanon Water Works residential customers are covered by this exemption today. Earlier this year, the 2022 Kentucky General Assembly passed legislation that makes changes to this sales & use tax residential utility exemption. Beginning January 1, 2023, the Kentucky Department of Revenue will begin imposing a sales tax on residential utility services for properties that are not a person’s primary residence.
Existing residential customers with only one location for utility services in their name will see no changes and will not need to take any action regarding this sales tax change. However, residential customers having utility services at multiple locations in their name must declare one location as their primary residence. Those customers can do that by filling out and returning the Primary Residence Sales Tax Exemption Form (51A380)
Lebanon Water Works is currently contacting impacted customers to assist working through this process. Although the Department of Revenue is imposing the sales tax on January 1, Lebanon Water Works customers who are affected can expect a transition period without the tax while the necessary paperwork is processed.
Existing residential customers who own two or more homes with utility services in their name may still qualify for a residential exemption if each property is a place of domicile for different Kentucky residents and Lebanon Water Works receives a certificate of domicile for each separately metered account. Again, Lebanon Water Works will be contacting impacted customers to walk through this process.
In most cases, current Lebanon Water Works residential utility customers will continue to receive the residential exemption for Kentucky sales & use tax and need to take no action regarding this change.
For more information, customers are encouraged to contact the Kentucky Department of Revenue about the tax changes, or please feel free to contact Lebanon Water Works customer service department at (270) 692-2491.
