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). Trade in allowance is not 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).

(B) Retail Book Value 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. When using the Retail Book Value, any vehicle given in trade must also be valued this way.

New Residents of KY - Average 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.