New 6% utility sales tax doesn’t affect all Kentuckians

BOWLING GREEN, Ky.-A few Kentuckians might see an increase in their utility bills next year. 

“Kentucky has put out a new sales tax in House Bill 8,” said BGMU Customer Relations Manager Christy Twyman. 

But don’t fear…it’s not going to affect everyone. 

“We will have a small percentage of our customers who will be affected,” said Twyman. 

The 6% sales tax on utilities applies to Kentucky residents who have multiple residences in the Commonwealth. 

“Such as lake houses, maybe Airbnbs. It’s not intended for our what you would say ‘normal’ customers who have one residence in our service territory,” said Twyman. 

It also does not apply to landlords. Your residents can fill out a tax exemption form that claims their place of residence. 

“If a tenant lives in that second property and declares that their primary residence, there will still be no sales tax on that property,” said Twyman.

Governor Andy Beshear said he vetoed the sales tax bill, and the General Assembly overrode that veto. 

“During the last general assembly, the super majority raised taxes, that’s the only way to put it. They added sales tax to a whole bunch of things that sales tax had never been on before. And they did it at a time when prices are already going up,” said Gov. Beshear. 

BGMU staff say it will take time to sort through paperwork to identify owners with multiple homes and to get their system updated. There is no definite date that it will go into action locally. 

“This will be an ongoing process. And we hate the stress that it has caused so many people. We will work with you and we will do what’s best for our customers,” said Twyman.