New Motor Vehicle Usage Tax Information

Click here for New Motor Vehicle Trade-In Allowance for Motor Vehicle Usage Tax

• Questions concerning this incentive may be referred to the Department of Revenue’s Motor Vehicle Usage Tax Section at 502–564-4455.
• The Motor Vehicle Usage Tax is a tax on a motor vehicle’s value when purchased and offered for registration.  Receipts for this tax are deposited into the Road Fund.
• The trade-in allowance may be utilized for new vehicles purchased September 1, 2009 through June 30, 2011.
• The new car trade-in allowance provision has a cap of $25 million.  If the total amount of Motor Vehicle Usage Tax reduced by the trade-in allowance reaches $25 million, then the trade-in allowance will no longer be recognized.
• The Department filed an Emergency Administrative Regulation (103 KAR 44:130E) on August 14 to outline how the cap will be computed and monitored.