Kentucky SB 19: AN ACT relating to a motor vehicle usage tax for active duty service members.

Bill Text

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AN ACT relating to a motor vehicle usage tax for active duty service members. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 138.460 is amended to read as follows: 3
(1) A tax levied upon its retail price at the rate of six percent (6%) shall be paid on the 4
use in this state of every motor vehicle, except those exempted by KRS 138.470, at 5
the time and in the manner provided in this section. 6
(2) The tax shall be collected by the county clerk or other officer with whom the 7
vehicle is required to be titled or registered: 8
(a) When the fee for titling or registering a motor vehicle the first time it is 9
offered for titling or registration in this state is collected; or 10
(b) Upon the transfer of title or registration of any motor vehicle previously titled 11
or registered in this state. 12
(3) The tax imposed by subsection (1) of this section and collected under subsection (2) 13
of this section shall not be collected if the owner provides to the county clerk a 14
signed affidavit of nonhighway use, on a form provided by the department, attesting 15
that the vehicle will not be used on the highways of the Commonwealth. If this type 16
of affidavit is provided, the clerk shall, in accordance with the provisions of KRS 17
Chapter 139, immediately collect the applicable sales and use tax due on the 18
vehicle. 19
(4) (a) The tax collected by the county clerk under this section shall be reported and 20
remitted to the department on forms prescribed and provided by the 21
department. The department shall provide each county clerk affidavit forms 22
which the clerk shall provide to the public free of charge to carry out the 23
provisions of KRS 138.450 and subsection (3) of this section. The county 24
clerk shall for his or her services in collecting the tax be entitled to retain an 25
amount equal to three percent (3%) of the tax collected and accounted for. 26
(b) The sales and use tax collected by the county clerk under subsection (3) of 27

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this section shall be reported and remitted to the department on forms which 1
the department shall prescribe and provide at no cost. The county clerk shall, 2
for his or her services in collecting the tax, be entitled to retain an amount 3
equal to three percent (3%) of the tax collected and accounted for. 4
(c) Motor vehicle dealers licensed pursuant to KRS Chapter 190 shall not owe or 5
be responsible for the collection of sales and use tax due under subsection (3) 6
of this section. 7
(5) A county clerk or other officer shall not title, register or issue any license tags to the 8
owner of any motor vehicle subject to the tax imposed by subsection (1) of this 9
section or the tax imposed by KRS Chapter 139, when the vehicle is being offered 10
for titling or registration for the first time, or transfer the title of any motor vehicle 11
previously registered in this state, unless the owner or his or her agent pays the tax 12
levied under subsection (1) of this section or the tax imposed by KRS Chapter 139, 13
if applicable, in addition to any title, registration, or license fees. 14
(6) (a) 1. When a person offers a motor vehicle [: 15
1. ]for titling [on or after July 1, 2005; ]or 16
[2. for] registration [;] 17
for the first time in this state which was registered in another state that levied a tax 18
substantially identical to the tax levied under this section, the person 19
shall be entitled to receive a nonrefundable credit against the tax 20
imposed by this section equal to the amount of tax paid to the other 21
state. Except as provided in subparagraph 2. of this paragraph, a credit 22
shall not be given under this subsection for taxes paid in another state if 23
that state does not grant similar credit for substantially identical taxes 24
paid in this state. 25
2. a. When an active duty member of the Armed Forces offers a motor 26
vehicle for titling or registration for the first time in this state 27

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which was registered in another state that levied a tax 1
substantially identical to the tax levied under this section, the 2
active duty member shall be entitled to a nonrefundable credit 3
against the tax imposed by this section equal to the amount of 4
tax paid to the other state, regardless of whether or not that state 5
grants similar credit for substantially identical taxes paid in this 6
state. 7
b. For the purposes of this subparagraph, "active duty" and 8
"Armed Forces" have the same meaning as in KRS 141.175. 9
(b) When a resident of this state offers a motor vehicle for registration for the first 10
time in this state: 11
1. Upon which the Kentucky sales and use tax was paid by the resident 12
offering the motor vehicle for registration at the time of titling under 13
subsection (3) of thi