Request By:
Mr. Billy H. Stout
Superintendent
Trimble County Schools
P.O. Box 67
Bedford, Kentucky 40006
Opinion
Opinion By: Steven L. Beshear, Attorney General; By: Robert L. Chenoweth, Assistant Deputy Attorney General and Chief Counsel
You have asked the Office of the Attorney General whether the 3% utility gross receipts license tax authorized by KRS 160.613 may be collected on sewerage. You also inquired if the utility tax cannot be charged on sewerage whether water usage and sewerage usage will have to be separated on the bill in order for the 3% to be charged only on the water usage.
It is the opinion of this office that sewerage is not a utility for purposes of the school utility gross receipts license tax. This position was staked out in a prior opinion of this office, OAG 67-282, copy attached. We believe this opinion is principally dispositive of your questions. Since sewerage charges must be excluded from the computation of the utility gross receipts license tax, we believe some manner of separating the water usage from sewerage charge must be made which in turn would need to be reflected on the service bill.
We trust the above has adequately responded to your questions. If we may be of further assistance, please contact us.