New Residential Utility Sales Tax Exemption Frequently Asked Questions
Note: These are some general questions that customers have had regarding the new change. These may not cover every topic or question. If you have any question or concern, please contact us at (800) 551-7965 or the Kentucky Department of Revenue at (502) 564-5170.
Q: I'm an existing customer of Wood Creek Water District and I only have one account in my name, do I still need to fill out the sales tax exemption form?
A: No. Existing customers with a single account in their name are grandfathered in and will be treated as exempt under the previous language in KRS 139.470(7). There is no need to complete and submit the form.
Q: I’m an existing customer of Wood Creek Water District and I have more than one residential account in my name, do I need to complete the exemption form?
A: Yes. If you have more than one residential account in your name you will need to the complete the form to declare your “Place of Domicile”. Failing to do so will result in all of your residential accounts having sales tax added to them after January 1st, 2023.
Q: I’m an existing customer of Wood Creek Water District with two accounts, one is my home and one is for farm use. Do I need to complete and submit the exemption form?
A: Yes. While the service account for farm use, if used exclusively for farm use is exempt; it is still coded as residential in our system. Therefore, you will need to complete the exemption form for your account that is your “Place of Domicile”. You must have a farm exemption certificate on file with us for your farm use meter/account. If you do not have this on file with us or you are not sure, you can submit it online by clicking HERE.
Q: I’m an existing customer of Wood Creek Water District with two accounts, one is my home and one is my business. Do I need to complete and submit the exemption form?
A: No. Your account that is your home is coded as residential. The business account is coded commercial. Your commercial account is already getting charged sales tax. Because we only show one existing account as residential, it will be grandfathered in and you will not need to complete the exemption form.
Q: I’m an existing customer that was grandfathered in under this new law. If I move to a different location, even in Wood Creek Water Districts service area will I need to complete and submit the form?
A: Yes. Any existing customer after January 1st, 2023 that has a “trigger” event such as a change of service address will need to complete the exemption form.
Q: I have a residential account with Wood Creek Water District, and another residential account with a different water or wastewater utility. Do I need to complete and submit the declaration form to the utility that my place of domicile is with?
A: Yes. While Wood Creek Water District will only see you as having one residential account, and the other water or wastewater utility will see the same; we would recommend that you submit the declaration form to the utility in which your place of domicile is with. Nonpayment of taxes can result in both civil and criminal penalties by the Commonwealth of Kentucky.
Q: I’m a landlord and have multiple accounts in my name. I live at one account, and rent the others but I keep the utilities in my name and not my renters. Can I fill exemptions out for each account or will I have to start paying sales tax on them?
A: Multiple properties owned by the same party may qualify for a residential exemption if each property is the place of domicile for different Kentucky residents and the utility service provider receives an exemption form for each separate account. You, the landlord will need to complete an exemption form for your place of domicile. Then, your renter will need to complete an exemption form for their place of domicile as well. Our online forms have fields for the name of the account holder, the name of the resident, and the name of the person completing the form.
Q: I have two water meters located at my place of residence (domicile), one serving my home and another serving an outbuilding or separate building/garage/shop etc. Can I claim the exemption for both meters (accounts) since they are both for my place of domicile?
A: Yes. The residential exemption may apply under the following circumstances: a) the utility meters must serve a single location that is the declared place of domicile, b) the utility services through both meters must be exclusively for residential usage, and c) the resident must submit a fully completed exemption form for each metered account.
Q: Does the exemption form expire every year? How often do I need to submit a new exemption form?
A: There is no expiration date for the exemption form. It will remain effective as long as the facts on the form remain accurate. For example, if the account location changes ownership or if the renter at the location changes, then the form should be updated to reflect the new Kentucky resident using the location as their place of domicile.
Q: After January 1st, 2023 will Wood Creek Water District have me fill out the exemption form if I purchase a new service or move?
A: Yes. After January 1st, 2023 any new service account, or any existing account the has ownership or a renter change will be required to complete the exemption form we provide.
Q: I noticed that Wood Creek Water District’s exemption form is different than the one I saw from the Kentucky Department of Revenue. Do I need to complete both or what?
A: The Kentucky Department of Revenue allows utilities to create and provide their own form as long as it still contains the required information from form 51A380. We have streamlined the process by creating an online form that customers can complete on their smartphone, tablet or PC. Our online version is still a legal binding document and you are affirming that the information you entered is true and correct when you sign and submit said form.
Q: My electric utility is requiring everyone to complete an exemption form, even if the person only has one residential account. Why aren’t you?
A: Your electric utility is not required to do so under the new revision to the law. We are only speculating as to why they are taking that approach, but it may be that they feel that is the most efficient way for them to collect and/or maintain the records for this change.
Q: I filled the exemption form out at one of my other utility companies, do I still have to fill yours out as well?
A: Yes. If you meet any of the criteria that requires you to complete the exemption form, you will need to fill one out for each utility you have.
Q: Some people are struggling right now financially, and Wood Creek decides to do this! Why?
A: Wood Creek Water District, along with other utilities in the Commonwealth of Kentucky has nothing to do with this change of law. We are simply required to collect what taxes are rightfully due and to keep records of all of the new residential utility exemption forms that are collected from this point on for audit purposes from the Kentucky Department of Revenue.
Q: Do I need to maintain the exemption form for my tax records?
A: No, but you can if you feel compelled to do so. If you provide an email address when completing our online form, you will receive a confirmation email that we received your form along with a completed PDF copy. The only record retention requirement is that of the utility. We must maintain records of the exemption forms for Kentucky Department of Revenue audit purposes.