The Department of Revenue administers the motor vehicle rental ride share excise tax. The new statutory language is provided in KRS 138.472.
Effective January 1, 2023
House Bill 8, passed during the 2022 Kentucky legislative session, establishes a new 6 percent (6%) excise tax on the gross receipts of vehicle rentals, peer to peer car sharing rentals, transportation network company services, taxicab services, and limousine services. Excluded from the tax are receipts derived from the provision of human service transportation delivery (HSTD). If 100% of taxicab services are HSTD, please contact the Department of Revenue (DOR) to be excluded from the registration requirements below.
The motor vehicle rental ride share excise tax is in addition to the current U-Drive-It tax, and any locally assessed tax, and must be reported separately each month to the DOR.
The Motor Vehicle Rental Ride Share Excise Tax return and payment are due on or before the 20th of the month following the month in which the rentals or ride sharing occurs. All Motor Vehicle Rental Ride Share Excise Tax monthly returns must be filed and paid online through the Tax Application for Ride Share (TARS) system. To register your business in the TARS system click here. See the Motor Vehicle Rental Rideshare Instructions below for help with registering your business.
Motor Vehicle Rental Rideshare Registration Instructions (1/23/23)
For specific information concerning the Motor Vehicle
Rental Ride Share Excise Tax, please call the Motor Fuels Tax Section at
(502)-564-3853 or email at KRC.WEBResponseMotorFuels@ky.gov