Sales Tax Law Change

Although the sales tax exemption remains in place for electric use at a primary residence, Kentucky will begin imposing a sales tax on other properties as of January 1, 2023.

To make sure the sales tax is not mistakenly applied to the electric bill of your primary residence, you need to fill out the form below. Members must declare which meter or meters is/are associated with their primary residence. You can email the completed form to tax@cumberlandvalley.coop, fax it to (606) 526-0158, drop it off at any Cumberland Valley Electric office location, or mail it to the address below.

Cumberland Valley Electric

Attn: Sales Tax Exemption

PO Box 440

Gray, KY 40734

 

Failure to provide a completed declaration form may result in the loss of a sales tax exemption.

For more information, visit http://kyelectric.coop/taxanswers, or contact your legislator through https://apps.legislature.ky.gov/findyourlegislator/findyourlegislator.html.

Declaration Form 51A380 (1-23).pdf 

 

 

Frequently Asked Questions

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

Yes. You must fill out the form in order to avoid paying sales tax on utility services at your primary residence. This form must be completed even if you only have a single account and that account is your primary residence.

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.

Can I fill out this form for a tenant or renter on my property?

No. If a landlord or owner has placed the utility service in their own name, they must pay sales tax on the service. Alternatively, a landlord or owner may elect to move service into the tenant’s name and allow the tenant to claim the sales tax exemption.

I have a separate account on my barn/garage/shed, do I have to pay sales tax on it?

If a separate account is located on the same property, in close proximity to residence, and is not used for a commercial purpose – such as a separately metered garage – then it can be considered a part of the residence and may be tax exempt.

Separate structures that are used for commercial purposes or are not on the same property are not tax exempt and you should not fill out a form for those accounts.