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Motor Vehicle Usage Tax - Taxing Methods

New Vehicles -

(A) Selling price as attested to in completed and notarized Affidavit of Total Consideration Given for a Motor Vehicle - Form 71A100 (40K) or Transportation Cabinet Form TC 96-182 (61K). As of July 1, 2014, trade in allowance is granted for tax purposes when purchasing new vehicles.

(B) 90% of Manufacturer’s Suggested Retail Price (including all standard and optional equipment, and transportation charges) must be used when an “Affidavit of Total Consideration” is not made available at time of registration.

Used Vehicles -

(A) Selling price as attested to in completed and notarized Affidavit of Total Consideration Given for a Motor Vehicle - Form 71A100 (40K) or Transportation Cabinet Form TC 96-182 (61K) provided that the selling price is not less than fifty percent (50%) of the difference between the Trade-in value of the motor vehicle offered for registration and the Trade-in value of any motor vehicle offered in trade.

(B) Retail Value from the prescribed reference manual must be used when an “Affidavit of Total Consideration” is not made available at time of registration.

National Automotive Dealers Association (NADA) is the prescribed reference manual used by the Department.  The electronic version of this manual is utilized by the county clerk.  When using the Retail Value for tax purposes, any vehicle given in trade must also be valued this way.

New Residents of KY - Trade-in Value as it appears in the NADA Official Used Car Cost Guide.

Tax Credit to New Residents of KY -

When offering a vehicle for registration for the first time in Kentucky which was registered in another state that levied a tax substantially identical to Motor Vehicle Usage Tax, a credit against the Usage tax equal to the amount of tax paid to the other state will be granted. No credit shall be given for taxes paid in another state if that state does not grant similar credit to substantially identical taxes paid in Kentucky.

Proof of Tax Paid can be provided by one of the following:

- Registration documentation from previous state.

- Title document from previous state can be used if the tax amount paid to the other state is clearly identified.

- Purchase Contracts can be used if the tax amount paid to the other state is clearly identified. The Purchase Contract must list the names of the buyer and seller, the amount of tax collected and paid, and the identity of the vehicle being registered. This form must accompany the completed TC 96-182. Finance Contracts are not accepted.

 

Related Content
 

DOR Contacts if you require forms not included in this list.

 

 

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Last Updated 12/16/2014
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