In an effort to reduce income tax, a tax reform bill approved by the Kentucky General Assembly during its 2022 session expanded the services that are subject to the state’s sales tax.

Kentuckians who have two or more gas, water or electric meters will have to pay sales tax on each account that’s not their primary residence beginning January.

“While taxes are a necessary part of government, they must be fairly applied. Outdated tax laws only lead to some people paying more than their fair share while others pay less than theirs,” Rep. Walker Thomas of Hopkinsville said in a press release.

According to Representative Thomas, the state’s individual income tax rate will drop to 4.5% in January, leaving up to $650 million in the paychecks of working Kentuckians across the state. The rate will then gradually decline as the state meets its budget and economic goals until it is completely eliminated.

According to Brent Gilkey of Pennyrile Electric, second meters will be taxed at a rate of 6% per month, but there will be no change if residents have a single residential meter for each utility.

“This is for situations where people have multiple meters at their primary residence, so if you have a garage, a well pump or anything similar that goes along with your primary residence, you would need to fill out one of the forms and submit that for it to be tax exempt,” said Gilkey.

There is a separate form for landlords and tenants, according to Gilkey, and those who have meters for the same utility in their names must declare whether the address listed on their bill is their primary address to ensure that the sales tax is not mistakenly applied to their primary residence’s electric bill.

“Many are seeing a request to fill out a ‘Declaration of Domicile’ on your utility bill, while others have received the form in a separate mailing. If you have not received anything like this, the best thing to do is reach out to the utility company and ask. It can be downloaded directly from the department’s website,” said Thomas.

Failure to provide a completed declaration form may result in the loss of a sales tax exemption for members who have multiple meters in their name.

Forms are available at and can be dropped off at any Pennyrile Electric location or emailed to

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