![]() ![]() Note: an example of a trigger event could include, but not limited to, an existing residential customer changing service locations (moving domicile locations).Ĥ) The Declaration of Domicile should be maintained on file at the utility for Department of Revenue audit purposes. ![]() Note: KRS 139.470(7) describes a place of domicile as “the place where an individual has his or her legal, true, fixed and permanent home and principal establishment, and to which, whenever the individual is absent, the individual has the intention of returning.”Ģ) Take the final version of the Declaration of Domicile and add the utility’s name and logo to the form to personalize it for your utility. If the utility provides more than one utility service, e.g., water, sewer, gas, electric, it should put boxes or lines on the form near where the customer signs to indicate the services utilized by the customer.ģ) The utility should educate their staff about the need for all “new” customers, who qualify for the Residential Sales Tax Exemption after January 1, 2023, to sign a Declaration of Domicile form. If a “Trigger Event” occurs after January 1, 2023, then the residential customer will need to sign a Declaration of Domicile form. The change in tax-ability for accounts will be effective on the first day of the first full billing cycle after the date of receipt of the declaration.To assist Kentucky Rural Water Association (KRWA) members, we recommend the following:ġ) Utilities review their list of Residential customers (those currently receiving the residential sales tax exemption) and note those customers who have more than one meter. Beginning January 1, 2023, only the meter at a customer’s domicile will be eligible to receive the Residential Sales Tax Exemption. All the other meters of the customer will have to be charged sales tax for services used after January 1, 2023. Landlords that operate a single-family rental unit, only need to submit a completed 51A380 signed by the tenant. The 51A380 must be completed and signed by the individual tenant. ![]() Separate additional meters at the same residential service address for detached garages and other buildings will qualify for the residential use exemption unless the building is for commercial use or other nonresidential use.įorm 51A380 – Declaration of Domicile : to be used by the resident of the service address, whether as the owner or the tenant of the residence.įorm 51A381 – Multi-unit Declaration of Domicile for Landlords or other Accountholders : to be used by the landlord operating a multi-unit rental facility with a master meter.Ī 51A381 form must also include a completed 51A380 Declaration of Domicile for each unit in the facility. Any additional services will no longer be eligible for residential tax exemption. If you are a customer who has more than one service address, you are required to complete the Declaration of Domicile Form in order to continue to receive the tax exemption for your primary residence. All the other services of the customer will be charged sales tax beginning January 1, 2023. In the 2022 legislative session, Kentucky lawmakers enacted a change to sales tax laws.īeginning Januonly a person’s primary residence (domicile) will be exempt from sales tax on utility services.įor customer that have more than one service meter, only the service at a customer’s domicile will be eligible to receive the Residential Sales Tax Exemption.
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