138.470 Exemptions from tax. - Kentucky Statutes

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138.470 Exemptions from tax. There is expressly exempted from the tax imposed by KRS 138.460:
(1) Motor vehicles titled or registered to the United States, or to the Commonwealth of Kentucky or any of its political subdivisions; (2) Motor vehicles titled or registered to institutions of purely public charity and institutions of education not used or employed for gain by any person or
corporation; (3) Motor vehicles which have been previously titled in Kentucky on or after July 1, 2005, or previously registered and titled in any state or by the federal government
when being sold or transferred to licensed motor vehicle dealers for resale. The
motor vehicles shall not be leased, rented, or loaned to any person and shall be held
for resale only; (4) Motor vehicles sold by or transferred from dealers registered and licensed in compliance with the provisions of KRS 186.070 and KRS 190.010 to 190.080 to
nonresident members of the Armed Forces on duty in this Commonwealth under
orders from the United States government; (5) Commercial motor vehicles, excluding passenger vehicles having a seating capacity for nine (9) persons or less, owned by nonresident owners and used primarily in
interstate commerce and based in a state other than Kentucky which are required to
be registered in Kentucky by reason of operational requirements or fleet proration
agreements and are registered pursuant to KRS 186.145; (6) Motor vehicles titled in Kentucky on or after July 1, 2005, or previously registered in Kentucky, transferred between husband and wife, parent and child, stepparent
and stepchild, or grandparent and grandchild; (7) Motor vehicles transferred when a business changes its name and no other transaction has taken place or an individual changes his or her name; (8) Motor vehicles transferred to a corporation from a proprietorship or limited liability company, to a limited liability company from a corporation or proprietorship, or
from a corporation or limited liability company to a proprietorship, within six (6)
months from the time that the business is incorporated, organized, or dissolved; (9) Motor vehicles transferred by will, court order, or under the statutes covering descent and distribution of property, if the vehicles were titled in Kentucky on or
after July 1, 2005, or previously registered in Kentucky; (10) Motor vehicles transferred between a subsidiary corporation and its parent corporation if there is no consideration, or nominal consideration, or in sole
consideration of the cancellation or surrender of stock; (11) Motor vehicles transferred between a limited liability company and any of its members, if there is no consideration, or nominal consideration, or in sole
consideration of the cancellation or surrender of stock; (12) The interest of a partner in a motor vehicle when other interests are transferred to him; (13) Motor vehicles repossessed by a secured party who has a security interest in effect at the time of repossession and a repossession affidavit as required by KRS
186.045(6). The repossessor shall hold the vehicle for resale only and not for
personal use, unless he has previously paid the motor vehicle usage tax on the
vehicle; (14) Motor vehicles transferred to an insurance company to settle a claim. These vehicles shall be junked or held for resale only; (15) Motor carriers operating under a charter bus certificate issued by the Transportation Cabinet under KRS Chapter 281; (16) Motor vehicles registered under KRS 186.050 that have a declared gross vehicle weight with any towed unit of forty-four thousand and one (44,001) pounds or
greater; (17) Farm trucks registered under KRS 186.050(4) that have a declared gross vehicle weight with any towed unit of forty-four thousand and one (44,001) pounds or
greater; and (18) In order to be eligible for the exemption established in subsections (16) and (17) of this section, motor vehicles shall be required to be registered at the appropriate
range for the declared gross weight of the vehicle established in KRS 186.050(3)(b)
and shall be prohibited from registering at a higher weight range. If a motor vehicle
is initially registered in one (1) declared gross weight range and subsequently is
registered at a declared gross weight range lower than forty-four thousand and one
(44,001) pounds, the person registering the vehicle shall be required to pay the
county clerk the usage tax due on the vehicle unless the person can provide written
proof to the clerk that the tax has been previously paid. Effective: March 6, 2006
History: Amended 2006 Ky. Acts ch. 6, sec. 12, effective March 6, 2006. -- Amended 2005 Ky. Acts ch. 173, Pt. XIX, sec. 1, effective August 1, 2005. -- Amended 2003
Ky. Acts ch. 124, sec. 39, effective October 1, 2003; and ch. 103, sec. 4, effective
June 24, 2003. -- Amended 1998 Ky. Acts ch. 290, sec. 1, effective July 15, 1998. --
Amended 1994 Ky. Acts ch. 54, sec. 2, effective July 15, 1994.