Effective Jan. 1, 2023, Kentucky law requires sales tax to be charged for residential utility services furnished to any location that is not a customer’s place of domicile (primary residence). The Kentucky Department of Revenue (KDOR) website provides more details and answers to frequently asked questions about the new law. In most cases, only one of your addresses will qualify for a residential exemption as your place of domicile.
Local utilities are responsible for enforcing the new state law. LEXserv City Services is reviewing its list of accounts and will attempt to notify all accountholders with more than one residential account or who reside in a multi-unit dwelling. Those individuals will need to file a declaration of domicile to continue to receive a sales tax exemption.
If you only have one residential address and it is a single-family residence, you will continue to receive the sales tax exemption and do not need to file anything additional at this time.
All new LEXserv customers and existing customers who move or transfer service will be required to complete a certificate.
Accounts needing action
If you have multiple residential accounts with us, you can claim exemption to your primary residence by filling out the required tax exemption form linked below.
In most cases, only one of your accounts will qualify, and filling out the form will allow that account to receive the tax exemption after the new state law goes into effect. All other accounts in your name will be subject to Kentucky sales tax.
Do you confirm that the utility service for one of your accounts is furnished to YOUR PRIMARY RESIDENCE and is eligible for the exemption from sales tax?
If “yes,” submit the tax exemption form for your primary residence.
Landlords and property managers may claim the exemption for their accounts provided the accountholder and each tenant complete the appropriate tax exemption form. For more information, please see the KDOR website.
To claim an exemption from this tax, a customer must provide the required tax exemption form or forms:
Use this form to certify your residence as your domicile.
Use this form if you are a landlord or owner of a multi-unit dwelling.
Tax exemption forms may be submitted to LEXserv City Services by regular mail at 200 E. Main St., Lexington, KY 40507, ATTN: LEXserv; by email to info.lexserv@lexingtonky.gov, or they can be dropped off at our office located at 218 E. Main St. in Lexington, Ky., Monday through Friday, between the hours of 8 a.m. and 5 p.m.