Kentucky Sales Tax

[MarvBear]

Information from NADA Title & Registration Textbook 2004

 

Kentucky Sales and Use Tax Applicable to Registration

 

Motor Vehicle Usage Tax is a 6% tax on the privilege of using a motor vehicle upon the public highways of the Commonwealth. Generally, the County Clerk collects the tax when the vehicle is first presented for registration in Kentucky and when ownership is transferred. NEW MOTOR VEHICLES – 6% tax based on the total consideration given (purchase price) as attested to by both buyer and seller on Form 71A100. If an affidavit is not available, tax is based upon 90 percent of the MSRP including all equipment, accessories, and transportation charges except that portion of the price attributable to equipment or adaptive devises necessary to facilitate or accommodate a physically handicapped operator or passenger, and except trucks with gross weight in excess of 10,000 lbs. For which the tax base is 81 percent of such price. No trade-in allowance on purchase of new vehicles. USED MOTOR VEHICLES – 6% tax based on the total consideration giver (purchase price) as attested to by both buyer and seller on form 71A100. If an affidavit is not available, tax is based upon the average retail value as listed in the appropriate price reference manual prescribed by the Revenue Cabinet. Generally, this is the average retail value as listed in the N.A.D.A. Official Used Car Guide or the N.A.D.A. Older Used Car Guide. NEW RESIDENTS-Vehicles registered in Kentucky by new residents are assessed Usage Tax upon the average trade-in values as listed in the appropriate price reference manual prescribed by the Revenue Cabinet. MILITARY PERSONNEL-Are not exempt from usage tax unless ALL THREE of the following condition exist: (1) buys from a Kentucky dealer, (2) on active duty in Kentucky, (3) is an out-of-state resident. TAX CREDIT- A credit against the applicable Kentucky tax is allowable for substantially identical taxes paid to other states provided evidence of such tax payment is submitted. TRADE-IN ALLOWANCE-In the case of USED motor vehicles a trade-in allowance equal to the taxable value of the vehicle traded in may be deducted in computing the taxable value of the vehicle purchase. PERSONAL PROPERTY TAX- Is assessed annually to the January 1 owner of a motor vehicle. Valuation is determined from a standard manual prescribed by the Revenue Cabinet. State and local tax rates are levied. Taxes are collected by the County Clerk and are due and payable on or before the earlier of the last day of the month in which registration renewal is required by law for a motor vehicle renewed or the last day of the month in which a vehicle is transferred. For additional information contact (502) 564-8180 Personal Property Taxes / (502) 564-4455 Motor Vehicle Usage Tax.