February 16, 2023 Update:

If you receive a text message, email or voice alert from Farmers RECC regarding sales tax forms, additional action is required to avoid being mistakenly charged sales tax. Only members who completed their Declaration of Domicile form, but require additional follow up with Farmers RECC will be receiving additional communications. 

If you receive these alerts, please complete the Declaration of Domicile form for each Farmers RECC account considered part of your primary domicile. 

If you have questions, please contact us at 270-651-2191. 

 

Co-op members with multiple meters need to take action

In the 2022 legislative session, Kentucky lawmakers enacted a change to sales tax laws. 

Beginning January 1, 2023, only a person’s “domicile” (primary residence) will be exempt from sales tax on utility services, including electric bills.

Farmers RECC is one of 26 electric cooperatives in Kentucky who work together to advocate for electric consumers. These efforts have helped protect the longstanding sales tax exemption for residential energy bills.

To make sure the sales tax is not mistakenly applied to the electric bill of your primary residence, some Farmers RECC members need to take action. Members who have multiple meters in their name need to declare which meter is associated with their primary residence by January 31, 2023.

Complete the Declaration of Domicile Form online or download a PDF of the form below, which allows utility customers to declare whether the address listed on their electric bill is their primary residence. A second form from the cabinet is available for landlords with multiple tenants at a single-metered property. Landlords with multiple tenants need to contact Farmers RECC at 270-651-2191 to obtain a form. 

We have included a guide below with different utility situations and declaration of domicile requirements. If you do not see your situation listed and have questions, please contact us at 270-651-2191 for clarification. 

Utility Situation

(Single Account Holder)

Action from Member

If you are:

  • Homeowner

(or)

  • Renter

 

  • With One Account

Complete:

 

  • Members can also download a PDF of the Declaration of Domicile Form below. 

If you are:

  • The Landlord of a home that is the primary residence for another individual, but is billed to you

 

Complete:

 

  • Members can also download a PDF of the Declaration of Domicile Form below. 

Utility Situation

(Multiple Account Holders)

Action from Member

If you are:

  • A Landlord of Multiple Homes that are primary residences for other individuals and all services are in your name  

Call our office at 270-651-2191 to discuss with a Member Service Representative your next steps.

If you have:

  • An outbuilding, garage or shed that is exclusively for residential usage and is separately metered

(AND)

  • That structure has the same service address as your residence    

           

Complete:

  • Complete a Declaration of Domicile Form below for each of your Farmers RECC account numbers 
  • Members can also download a PDF of the Declaration of Domicile Form below.                                         

For more information, contact us at 270-651-2191 or at the Kentucky Department of Revenue site. You can also view the Kentucky Department of Revenue Frequently Asked Questions page for more information. 

Farmers RECC Declaration of Domicile Form

 

Frequently Asked Questions

What is this new tax on utilities? 

This is not a ‘new’ tax. This is an expansion of existing Kentucky Department of Revenue sales tax to include utilities. 

Does the co-op keep this money?

No. Farmers RECC has been mandated by the Kentucky Department of Revenue to collect the sales tax and remit collected funds to the Department of Revenue.

When should I turn in my Declaration of Domicile form?

Farmers RECC is requesting members complete and return their Declaration of Domicile forms by January 31, 2023. 

How is Farmers RECC communicating this to members? 

Farmers RECC members with multiple accounts will receive a mailing from Farmers RECC at the end of December with additional instruction. We will follow up with additional communications including, but not limited to, email, text message and phone communication. 

Do I need to fill out and return this form if I only have one account?

No. However, members with one account are welcome to complete a Declaration of Domicile form in case the Department of Revenue instructs Farmers RECC to collect them on all accounts in the future. 

May a member claim the residential utility exemption on all utilities supplied to a primary residence with one meter servicing the home and another meter servicing an outbuilding?

Yes, the residential utility 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 Declaration of Domicile Form 51A380, for each metered account. ​

Can I fill out this form for a family member?

The actual person that resides on the premises should be the one to fill out the form. However, if necessary, an adult child can fill out the form on behalf of elderly parents, or a parent can fill out the form on behalf of a child. Since the courts and the Legislature have not yet clarified this issue, be aware that it may be declared legally insufficient, and you may need to have the actual resident fill the form out again in the future.

If an individual owns two or more homes, lives in one and rents the others, could the other qualify for exemption?

Yes. For the rental unit, the renter will need to complete the Declaration of Domicile form.