Residential water and sewer sales shall not be charged Kentucky State Sales Tax. This includes multiple meters that are used exclusively for residential use such as irrigation meters and garage meters. Rental Property accounts that are listed under or billed to an owner or company are not exempt from State Sales Tax. Although the property is residential it will only be exempt from State Sales Tax if it is in the tenant’s name and the bill is sent to the address of the tenant. Mobile Home Parks are treated with the same guidelines as rental property. Farms, barns, and farm irrigation meters are exempt from State Sales Tax only if a valid farm exemption certificate is on file with the Utility.
Commercial properties and businesses are subject to applicable Kentucky Sate Sales Tax. Churches are exempt from State Sales Tax, but must have a valid exemption certificate on file with the Utility before tax is removed. State and Local Government agencies are exempt from State Sales Tax. Commercial homebuilder’s property is not exempt from State Sales Tax.
Industrial water and sewer sales used in connection with the manufacturing or assembling of a product shall be classified as an industrial user and are subject to applicable Kentucky State Sales Tax.