Kentucky Sales Tax Exemption
Effective January 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.
To claim an exemption from this tax a customer must provide the required tax exemption form or forms:
Use Form 51A380 to certify your residence as your domicile.
Use Form 51A381 if you are a landlord or owner of a multi-unit dwelling.
In most cases, only one of your accounts will qualify. If you can answer “yes” to the question below, submit the appropriate tax exemption form or forms for the qualifying account in order for that account to receive the tax exemption. (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?
Landlords and property managers may claim the exemption for their accounts provided the accountholder and each tenant completes the appropriate tax exemption form. For more information, please see the KDOR website.
Tax exemption forms may be submitted to Kentucky American Water by regular mail at One Water Street, Camden, New Jersey 08102, ATTN: Customer Tax CSO; sending an e-mail to CustomerTaxExemptionProcessing@amwater.com; or drop off at our office located at 2300 Richmond Road in Lexington, Kentucky, Monday through Friday, between the hours of 9 a.m. and 4 p.m.