LOUISVILLE, Ky. — The Kentucky Department of Revenue has made another change to sales tax on services.
This means businesses, including apartment owners, landlords and those who own more than one property, will be taxed on basic utility services starting Jan. 1.
The new sales tax will also affect major businesses like LG&E, which will be required to tax their customers by 6 percent, but only people who own several properties. Clients will see a significant tax to their water, sewer and electric bill.
The Kentucky Department of Revenue's Legislation in House Bill 8 will make changes to the residential utility tax. LG&E is one of the major companies that has already reached out to customers who are affected.
"What's so important is right now [is that] we're communicating to our customers who have service at multiple properties," Liz Pratt, LG&E media relations manager, said.
Pratt says in the case where there is a landlord or tenant and the utility is in the tenant's name and that's the tenant's primary residence, there's no action they will need to take.
However, if there are landlords that were among the customers who have been contacted by LG&E, because they have service at multiple properties in their system, the tenant would need to go onto LG&E's website and go to the House Bill 8 Residential Sales Tax page.
Pratt says they will need to complete the tax exemption form to let them know that property is their primary residence.
The deadline to apply is approaching soon.
"We are strongly encouraging them by Dec. 15 to go onto our website and complete the online tax exemption form," Pratt said.
The form serves as purpose to clarify if a customer has one place of residence, so they won't be taxed 6 percent like the clients who have multiple services.
For more information about this new sales tax please go to the Kentucky Department of Revenue's website.
Make it easy to keep up-to-date with more stories like this. Download the WHAS11 News app now. For Apple or Android users.
Have a news tip? Email assign@whas11.com, visit our Facebook page or Twitter feed.