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VEHICLE REGISTRATION

 



209 W High St # 3
Hodgenville, KY 42748-1543
Phone: (270) 358-3544
              (270) 358-9902

Fax: (270-358-4528


Hours:
8:00-4:30 Mon. - Fri.



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Vehicle Registration

The Larue County Clerk's Office Vehicle Registration Department is responsible for all paperwork in the purchase, sell and transfer of all motorized vehicles.

USAGE TAX
The 1998 General Assembly passed House Bill 74 relating to the collection of Usage Tax
The Usage Tax has changed dramatically
Usage Tax will no longer be based on the MSRP or the NADA book value
Tax will be based on what you pay for a vehicle

The taxable value of new vehicles will be based on the "Total Consideration Given"

"Total consideration given" is defined in KRS 138.450 as the amount given, valued in money, whether received in money or otherwise, at the time of purchase or at a later date, including consideration given for all equipment and accessories, standard and optional.

What does Total Consideration really mean? It includes the cash given, the amount financed, the value in money of any other items, and the value of any vehicle traded.

Total consideration does not include the following:

Manufacturer or dealer rebates, Interest payments made over the life of a loan, the value of extended warranties and service contracts.


After the buyer and the seller agree on the Total Consideration Given they must complete an affidavit before Usage Tax can be assessed upon this amount.

Total Consideration Given must be attested to in the affidavit
The value assigned to any vehicle traded in must also be attested to in the affidavit
The affidavit must be signed by both the buyer and the seller
Each signature must be individually notarized
The Revenue Cabinet will provide the affidavit to the county clerks
The county clerks provide the affidavit to the public free of charge
The form is in duplicate, with a copy for the buyer, seller, clerk and Revenue
The affidavit can be downloaded from the section on forms
We will accept a fax copy

The affidavit contains:

Buyer and seller information
Vehicle/Trade-In information
A definition of Total Consideration Given
A place to record Total Consideration Given
A place to record Trade-In allowance
Penalty provisions
Signature block for buyer and seller
A notary section

The Penalty Provision
Any person who willfully and fraudulently gives a false statement as to the total and actual consideration paid for a motor vehicle under Section 3 of this act shall be guilty of a class D felony and shall be fined not less than two thousand dollars ($2,000) per offense.

So what do you do if you can't get an affidavit?
If an affidavit is not available, tax will be based on the MSRP. This is the same method currently used for assessing Usage Tax on new vehicles. The MSRP will still be required by the county clerk. Usage Tax will be calculated on 90% of the total MSRP. Trucks weighing over 10,000 pounds will be taxed on 81% of the MSRP.

Conversion Vans and Modified Vehicles:
Primary procedure calls for tax to be assessed on Total Consideration given for the complete unit. Secondary procedures allow for tax to be assessed on MSRP, including the MSRP of the conversion package. Conversion vans and modified vehicles seldom, if ever, have MSRP's. Contact the Revenue Cabinet in absence of an affidavit or MSRP.

Used Vehicles:

Used Vehicles fall into one of four categories

Used vehicles previously registered in Kentucky that are sold in Kentucky
Used vehicles purchased out-of-state by Kentucky residents
Used motor vehicles being registered by a new resident for the first time in Kentucky
Motor vehicles received as a gift

Used vehicles previously registered in Kentucky that are sold in Kentucky:

This is by far the most common occurrence, these vehicles will be assessed Usage Tax on the "Total Consideration Given". Trade-In allowance is granted. Total Consideration Given must be attested to in a notarized affidavit.

What is Total Consideration?


It includes the cash given
It includes the amount financed
It includes the value, in money or any other items

However, it does not include the value of any motor vehicle traded.
Total consideration does not include the following

Dealer discounts/rebates
Interest payments made over the life of a loan
The value of extended warranties and service contracts
Any amount allowed as a "trade-in allowance"

Trade-In Allowance:


Trade-in allowance only applies to used vehicles. Both the vehicle being purchased and the vehicle being traded in must be registered in Kentucky to receive trade in allowance. "Trade-in allowance" is defined as the value assigned by the seller of a vehicle to a motor vehicle offered in trade by the purchaser. Trade-in allowance must be disclosed in the affidavit.

Examples of how used vehicles are taxed:

Used Vehicle, No Trade-In:


Asking Price

$15,000

Less Discount/rebate, etc.

2,000

Total Consideration Given

13,000

Multiplier %
Tax Due

X .06
$780

Used Vehicle, with Trade-In:


Cash or down payment
Amount Financed

$5,000
15,000

Cash value of other items (tractor)
Total Consideration before trade-in

2,000
22,000

Value of trade-in assigned by dealer
Total consideration given

8,000
14,000

Multiplier %
Tax Due

X .06
$840

Used vehicles purchased out-of-state by Kentucky residents
These vehicles will also be assessed Usage Tax on the "Total Consideration Given"

No trade-in credit is allowed
If a vehicle is traded in, the average trade-in value from the book will be included as part of the Total Consideration Given
Total Consideration Given before trade-in must be attested to in the affidavit
Example, Out-of-State Purchase:


Total Consideration before trade-in
Less trade-in as assigned by seller

$17,000
5,000

Total Consideration per affidavit
Add average trade-in value from book

12,000
4,700

Total Consideration Given

$16,700

Multiplier %
Tax Due

X .06
$1,002

So what do you do if you can't get an affidavit?
KRS 138.450 gives the Revenue Cabinet the authority to establish a taxable value through the use of the automotive reference manuals prescribed by the Cabinet. Usage Tax will be based on the Average Retail Value from the appropriate reference manual.

Conversion Vans and Modified Vehicles:
Primary procedure calls for tax to be assessed on Total Consideration given for the complete unit. Secondary procedures allow for tax to be assessed on the book value, but The book just gives the base value not the value of the complete unit. If there is no affidavit on conversion vans or modified vehicles, please call the Revenue Cabinet for a taxable value.

Used motor vehicles being registered by a new resident for the first time in Kentucky:
In most cases, there will be no current selling price. The taxable value will be the average trade-in value from the book. Older used vehicles whose values are no longer in the book will be assessed tax on a minimum value of $100. Tax credit will continue to be granted.

Motor vehicles received as a gift:
The taxable value of vehicles received as a gift will be the average trade-in value from the appropriate reference manual.


Frequently Used Forms for download

Motor Vehicle Usage Tax Multi-purpose #71A101 Vehicle Transaction Record (VTR)/Affidavit of Total Consideration Given Form #TC96-182
Application for Boat Title (BTR) Form # TC96-184 Application for a Commercial Truck Plate


 
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