A new law in Kentucky places limits on the existing sales tax exemption for residential utility accounts. Customers will be required to pay the six percent (6%) state sales tax on utility services provided to any property that is not the primary residence of the owner or occupant. The new law, referred to as House Bill 8, is part of Kentucky's recent tax reforms.
The new law takes effect on January 1, 2023.
The law requires an exemption certificate, called a “Declaration of Domicile For Purchase of Residential Utilities,” for each service address/unit occupied as a primary residence. In addition, the owners or landlords of multi-unit properties served by one meter must complete a “Multi-Unit Declaration of Domicile.”
Most current customers with a single residential account will retain their exempt status on January 1, 2023, but a valid exemption certificate will be required for:
- New residential customers
- Existing residential customers who start a new account
- Existing residential customers who are reconnecting or re-establishing service
- Existing residential customers who move or transfer service to a new address
- Existing customers with more than one residential account
- Any change to an existing residential account
The new sales tax will appear in the Taxes & Fees portion of the Columbia Gas bill. In accordance with the law, refunds will not be issued for taxes due before a valid exemption is submitted by the customer and processed.
Customers with multiple accounts
Owners of landlords of multi-unit properties served by one natural gas meter must complete a “Multi-Unit Declaration of Domicile.” The certificate must be completed in addition to the certificate completed by the primary resident of each unit.
How to obtain an exemption certificate
To obtain a copy of the exemption certificate and instructions for completing the form, customers can click the button below.
Primary Resident Certificate Form
Multi-Unit Landlord/Owner Form
How to submit a certificate
Customers from whom an exemption certificate is required should submit the certificate by the 10th of the month to allow time for processing ahead of the next billing statement. In accordance with the law, refunds will not be issued for taxes due before a valid exemption is submitted by the customer and processed.
To submit exemption certificates, Columbia Gas customers can mail the form(s) to:
Columbia Gas of Kentucky
P.O. Box 14241
Lexington, KY 40512-4241
To submit certificates via electronically, send an email to salestax@ColumbiaGasKy.com. Please provide only the first eight digits of your account number for certificates submitted via email.
Please note that you must file a certificate with each utility company that provides service to your property, including water, sewer and electric. Contact your providers for information about how to submit a certificate.
For more information
Click here for a printable information sheet about the tax change. For more information about the new law and copies of the exemption certificates, contact the Kentucky Department of Revenue at 1-502-564-5170. Customers also can visit ColumbiaGasKY.com/Tax.
Do I have to pay sales tax on natural gas?
Starting January 1, 2023, a new Kentucky law requires customers to pay the six percent (6%) state sales tax on utility services provided to any property that is not the primary residence of the owner or occupant. An exception certificate, called a “Declaration of Domicile For Purchase of Residential Utilities,” will be required for:
- New residential customers
- Existing residential customers who start a new account
- Existing residential customers who are reconnecting or re-establishing service
- Existing residential customers who move or transfer service to a new address
- Existing customers with more than one residential account
- Any change to an existing residential account
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How do I submit my sales tax exemption certificate?
To submit an exemption certificate, Columbia Gas customers should mail the completed form to Columbia Gas of Kentucky, P.O. Box 14241, Lexington, KY 40512-4241 or send an email with the certificates attached to salestax@columbiagasky.com. Certificates submitted by email should include only the first eight digits of the account number.
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Where does the utility sales tax appear on my bill?
If you are required to pay the six percent sales tax for utilities and you have not submitted a valid exemption certificate, you will find the tax charge in the Taxes & Fees section of your natural gas bill.
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